CRYPTO TRADING: HOW TO CONTROL YOUR EMOTIONS When Trading Cryptocurrencies Episode# 12


Hello, my name is Sean Vengan and today’s the 28th of july
2017
now the
overwhelming attitude of the moment from what I’m hearing from forums and posts that I make is that is a
Growing fear that the market is going to crash
Now we did have a fall that we predicted that fell towards a 16th of july
But that wasn’t a crash
That was a correction
And I’ve uh pointed out in my video in episode number 11 that this is a normal
balanced market at the moment and that
Correction which was an ABC Correction
Was actually needed in order for the market to move onwards and upwards
So today, I don’t want to cover
Analysis as such although. I will be showing you some
But what I want to talk about is trading
psychology
Because trading pSychology is the most important thing
Equal to risk management that will help you make money in trading and unless you address your trading psychology
You have absolutely no. Hope whatsoever of making money in trading
So without any further delay let’s discuss that topic today
So let’s start by looking at the chart, and this is a chart of bitcoin on a daily basis
now what happened is
That we had a top over here
and
The market started falling now those people who thought the market was going higher over here
Felt the pain as a market lost a third of its value
from
$3,000 to roughly
$2,000 and
Those same people who now said okay?
Let’s go short now because the markets crashing felt the pain as a market bounced further up
So we’ve got fear coming down and we got fear coming up
combined with the fear of the user
Activated hard fork. There’s fear in the markets
Now we picked all of this, we saw Target one
We saw Target two now when it didn’t hit target three the market was giving us a clear signal
That the sellers weren’t strong enough to push the market down and we would have been out
So we would have been out and with the trailing stopped. We would have locked in our profits
When the market made new highs over here as the market make new highs over here
We were waiting and patient and as I said in my last episode on
Next potential move I say potentially because we don’t know
was a higher level
Well we have that higher low now this bar here today has taken out the top
So therefore we are now in a long trade
So those people who have fear in the markets saying they don’t know what’s going on, or the market is going to crash
Or facing the wrong way currently now they could be correct the market could crash
But the point is we follow the charts and we follow the patterns and the structure
we don’t need to guess we don’t need to overthink this we just
Follow what the market tells us and as it stands at the moment?
With the higher high and a higher low the market is clearly saying it wants to go up
So it’s declared itself now. Let’s talk about fear in the market
fear arises from ignorance
ignorance arises from not knowing what you are doing
Fear compounds itself when when you refuse to accept you are wrong
Okay, let’s examine these statements fear arises from ignorance
so if you weren’t aware of patterns as I explained to you in episode 10 and
Position in the market as I explained to you in episode 11
All before the events this is not hindsight information
This is all before the events and I said to you look for a higher low after
It’s formed a higher high
So that shows us
We are not in a position
Where we’re ignorant we do know that we do know what we’re doing and we are prepared
calm and in control
The third point here is that fear compounds itself when you refuse to accept you are wrong
Well in these markets those people who are going long probably did not have a stoploss
It’s very common for traders not to have a stoploss
to move their stop-Loss
Alternatively they put their stop-loss so far away that they feel their pain
So as they lose more and more money the fear compounds itself
By not having any trading plan or any system
This is what happens, and this is all based on ignorance and the only answer to that is trading education
To know what’s going on in Advance
And these youtube episodes on how I hope are providing you that with that type of information
So just to confirm
most traders and we’re talking about
90% of traders have no system. No process
No reviews have anxiety to pull this the trigger
Like to revenge trade meaning to say if they’ve had a heavy loss
They want to get their money back, and they don’t use stop losses
So these are all bad
Practices as a trader and will guarantee you to lose money in the short to medium to long term
And what we have here are four points. Which I hope will help you become professional trader
the first point is
Adapting to changing markets you have to understand that the market is a living breathing thing
just like if you owned a
Restaurant business or a corner shop or a it it business?
Everything changes you can’t stay still
Technology changes
demands change and you have to adapt it’s
the same way is that the market could be going down one day and
The next day it could be racing upwards as a trader you must be flexible and go both ways
Secondly you have to build on your strengths
Successful traders have certain skills for example. They may be good at recognizing patterns
Or they may be able to enter orders quickly
By reversing their position or they may be able to look at things in a long-term
Way rather than a short-term way
You have to identify what your skills are and trade those timeframes?
That suit your strengths
So if you are quick at thinking you may be a day trader if you’re good at pattern recognition
Or long-term views swing trading or positional trading may suit you
Point three is cultivating creativity
now the best way is to
See things through different
People’s eyes if you just look at it from your own perspective
Then you’re only going to get a biased view
So you have to educate yourself?
with successful traders
Do not join chat rooms. They are a waste of time those
Boxes are a waste of time in my view and it is controversial
CNBC is a waste of time you?
Want to be with successful traders who can train you to the proper way to think and behave?
point four
Adopt best practices
What you have to do is?
Overcome all your bad
weaknesses or your human frailties
By having processes which will keep you in control that includes position sizing
Stop losses
specific entries and reasons for entries reasons for exits
Trailing stops now I can teach you all of these things, but these are all best practices that you have to
Adopt in order to be a successful trader and you learn that bit by bit
so on the one side we have the logical skills such as
Analysis and trade Management and now on the other side
there is the psychological skills which you have to work on yourself and
To be a successful trader you have to do both
But I can tell you this for a fact your psychological side is the one which you need to do the most work on
because that is going to be the one which is going to cause you losses and
The way to do that is to analyze yourself when you see yourself doing something wrong pull yourself up
Let’s talk about that
We all have bad habits and until we recognize those bad habits for example
we may like snacking on chocolates or crisps or something like that, but if we ignore it, we’ll continue to do so
But if we say hey, you know what I’m have had too many chocolates this week
I’m gonna have some I don’t of vegetables from Carrots or cauliflower or broccoli
Instead of that borah chocolate then were recognized using that bad habit and we’re taking
action to correct that bad habit
So similarly in trading when we have a bad habit the first thing we need to do is recognize it
The next thing we need to do is correct it now when we correct it what we need to do is
develop a routine
By repeating the routine of a good habit that bad habit
changes to a good habit and we want to foster good habits and
to Destroy the bad habits
So in conclusion what I would say to you is do not ignore your human emotions
Oh, it is part of your dnA
so you cannot
wipe it out, but what you can do is put mechanisms and
Processes in place in your trading to be a successful trader
So I hope you enjoyed this lesson today and learn something from it. Thank you for your time. Take care. Bye. Bye now
you

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