Trade Bitcoin Trading

Bitcoin Psychology Principles

Trade with the bitcoin trend only

Stay focused on the large market trends and don't try to react to every bitcoin price action move. "The bitcoin trend is your friend!" follow it. Investors need to follow the bitcoin trend when trading btcusd online. One of the principle of market psychology is to always trade with the trend.

Most beginners will enter the btcusd market when the bitcoin price chart shows a steep movement. These traders don't even take the time to understand what are the forces that are causing such a movement & thus make the mistake of being too eager to enter the btcusd Market: they want to rush and be the first ones to enter the btcusd market after an economic data is published, without any regard to the direction of the bitcoin trend only to finally realize that it was just a bitcoin whipsaw when they are already in a losing trading position. In such situation, most seem fearless, not fearing making losses & only worrying that other traders are earning and making profit while they sit on the side-lines. In Market Psychology this is the in the opposite trend of what traders should be doing. In your plan template you should write clear guidelines within their bitcoin plan on how to avoid this type of mistake.

In BTCUSD Crypto, the rule is to never be too eager to enter the btcusd Market: learn to overcome the feeling of worrying that you will be too late to earn a profit. Take time to analyze and interpret what is the impact of the economic info released.

Sometimes this breaking news does not dictate the forecast of the likely price direction. You have to analyze and interpret carefully if it will have a big impact on the bitcoin prices. Most often, these information gives false entry signals.

It is important that you overcome your eagerness to be the first one to enter the btcusd market using Bitcoin psychology. You have all the time to analyze and interpret the impact of this breaking news before you enter the btcusd market.

It may take more time but your trades will be moving in the right direction. This is what we call following the market trend.

Trade with a disciplined Bitcoin plan

Investors should not base their positions on a just a hunch. Positions should only be executed using a well systemized plan. Plan should specify the trade rules of entry and exit. Use the market psychology section to specify your market mindset when opening trade transactions.

Investors should examine all of the factors carefully before opening a position and they should not let fear or greed or someone else's influence to cause them to enter or exit a position before their bitcoin system gives and generates a trade signal. Do not let the temporary situations erode your convictions, use discipline to follow your trading plan.

Using a consistent and disciplined plan eliminates the need to make rush decisions based on short term bitcoin price action moves.

Cut your losses and let your profits run continuously for quite some time

Some investors hold onto losing positions for a quite long time in the hope that these losing positions will turn and move in their direction after a while. However, this never happens & the btcusd market keeps moving against these losing positions and makes them lose even more.

The other mistake that traders make is to not book the profits at the opportune time, all investors should try to maximize profit per trade but at the same time be aware when the bitcoin trend changes and close out trade positions at that time and not wait while their positions in the btcusd market are open. Only keep positions as long as the bitcoin trend is in place and close once the bitcoin trend shows signs of slowing.

Losing Bitcoin investors see loss as failure. Winning traders see loss as a studying experience, this is one principle of trading psychology which helps them improve their trading profits.

When winning traders accrue a loss, they have not failed, they've just learned something new about the way the btcusd market works. Winning traders always look at the big picture & stick to their Bitcoin plans.

Many bitcoin traders in a losing trading position wait out for the best time to cut a loss. However, the best time to exit never comes and the trade continues to lose money. Best time to exit is when the loss is low i.e. Less than 30 pips but not when the trading loss is hundreds of pips. Your account may be wiped out while still waiting for the bitcoin trend direction to move in your favor.

A losing position from the start is likely to stay like that - Popular Saying by Investors.

Use psychology and learn to cut losses and avoid holding onto losing positions due to and because of the hopes that the btcusd market will move in the other direction. There is always a new opportunity to trade as long as your margin is not tied up in a losing trading position.

An investor should get released from a negative psychology and apply the money to do another bitcoin transaction. An investor should cut the losses quickly & move to profit making positions. Some investors will end up sitting on a losing position; they usually and generally allow the bitcoin price to move against their position many pips while hoping that the bitcoin trend direction turns and goes back in their favor.

Profits are made when trade transactions are closed not when they are opened, henceforth be ready to close-out your open trade position positions as many times as possible.

It's a wrong belief that each transaction will gain profits. A trader can still make money even if only half of his trades are profitable. Question is how an investor can make profit with only half of his trade transactions winning, the answer is that one should keep the losses at a minimum and open other profitable trade positions. This way the greater number of profit trades offset the losses.

To learn and know more about psychology and how to transform your mindset using a Bitcoin plan go the lesson BTC USD Crypto Plan.

Crypto Trading Psychology Section on Crypto Trading Plan - What is BTCUSD Trading Market Psychology?

Bitcoin Plan - Psychology Section

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