Every day we start by choosing between long and short.
Sometimes you wake up, look at the btc chart - and clearly see your setup. And sometimes you don't see it. But you still saw how many of your friends traded shorts successfully and decide to enter a hostile market. Bottom line: Lost profit, exhausted nerves, stress, a blow to self-esteem.
Most traders forget that there is a third option - to stand aside.
Let's discuss when such position can be useful and why most people use it so rarely.
Pro traders can be split into 2 types: Bulls and bears. They trade for profit only in one direction, because they have a trained eye to see only their kind of setups. When a bull finds himself in a bear market, he either trades in the red or breakeven. The same true for the bear.
And yet, even knowing this, the trader continues to trade unfriendly setups. Fueled by success that he carries from his market, he is sure that just a little more, a LITTLE LITTLE more, and he will be able to trade profitably in this market as well. "And if I can trade for profit in both directions, then I will become an absolute terminator and even Warren Buffett himself will personally beg me to share my market forecast with him!" I don’t know if you woke up with such thoughts in the morning, but I definitely had a couple of times.
The answer to this phenomenon is GREED (for money or fame). And the easiest way to get rid of such incidents is to write the following rule in your trading algorithm (I hope you have it): • Trading during correction is prohibited.
Just one sentence will save you a huge amount of money and help you increase your capital much faster. Instead of losing money trading corrections, it is better to: • Relax and spend part of your honestly earned profit on yourself and your loved ones. • Patiently wait for your market and return to the game.
Do this - and trading will bring you much more pleasure, and you will earn even more and enjoy your life!
If this article was useful to you, please like and leave a comment so that I understand that it has value to you and will continue to write educational material in the future✌️
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