Bitcoin Psychology: How to Improve Tips

Never pick bottoms and tops

Some Bitcoin traders are always trying to pick top or bottom.

These people want to sell at the top and buy at the bottom even before the btcusd market has reversed. Those who try and pick the turning reversal points are never accurate, their positions usually moves against them only for them to get stopped out before the btcusd market turns. ==22==It--isIt'sIt--is always better to wait and open a position after the btcusd market has turned than try and predict before the btcusd market has turned.

Although there is always a turning point for a Bitcoin trend, there is no one who can predict the exact high and the exact low of a Bitcoin market trend. The high & low is formed by the btcusd market forces.

Never Average down

Some traders keep buying when bitcoin price falls and drops lower so as to neutralize the loss once the bitcoin trend starts and begins heading in their trade direction. This never works because generally, when bitcoin price begins to move in a certain direction it usually continues in that particular direction for quite a period of time.

The idea of buying against your first trade to offset its loss gets more complicated once the btcusd market starts moving against your second position.

When you need to open various trade transactions just to erase the first initial mistake, you're entering new ==22==tradestrade--positions not due to your analysis, but to save your losses which can be easily avoided in the first place using stoploss order.

Know when to trade & when not to

A good trader understands that there are times when it's better to be in an all cash position and watching the btcusd market from the sidelines. Knowing the times and periods when not to trade is just as important as knowing when to the market.

You can trade one fewer times and make profit or trade many times and make a loss. It's all about following your trading system guidelines and only trading when there is a trading signal that has been generated, otherwise stay out of the market in an all cash position. If there's no signal to trade then do not open any order that day, it may mean the difference between keeping your account balance the same or making a trading loss that day.

Don't Fall In Love With Your Trades

The market does not care which bitcoin instrument you buy or sell, and the btcusd market is always right. Don't marry your orders, the reason/explanation why trading with a trading plan is recommended is because most of the objective market analysis is made before and prior to a trade transaction is executed. Once a trader is in a trade they tend to analyze the bitcoin price movement differently in the hopes that the bitcoin prices will move in a favorable direction instead of looking objectively at the factors that may have turned against your initial analysis. Those with a losing position tend to marry their trade position, which causes them to disregard the fact that all signs point towards continued losses.

Never over trade

Over trading is a common mistake. They open high bitcoin leveraged trades - by opening large bitcoin positions than what their account balance can allow.

Leveraging your account too high by transacting far larger positions than before puts you in a very vulnerable position leading to bad decisions. Always limit your bitcoin leverage to less than 10%.

Remain emotionally detached from the btcusd market and the excitement that its movement creates.

Do-not let your emotions rule. Always be objective within your decisions.

Do not constantly check bitcoin prices all day long unless you are scalping. If you get caught up in tick watching then you're going to make wrong decisions based upon greediness or panic.

The truth is that most of the BTCUSD traders know about it, but in the actual trading, they actually keep repeating the same error/mistake, they keep opening new positions that are against the bitcoin trend in order to lower the average bitcoin price. The result is that the first open position is already a few hundred or even thousand pips away from the current bitcoin price continues to move against the trader, and now also together with these newly added trade positions. That is why traders should avoid overtrading.

Bitcoin trading can be unpredictable. Sometimes even the experienced traders fail in Bitcoin. It does not happen due to lack of knowledge and experience. Bitcoin traders who spent several years do have knowledge & experience. Sometimes they fail due to and because of greed & disrespect to Bitcoin psychology.

This science of BTCUSD psychology is very important both for beginners & seasoned traders. Psychology trains you to master emotions. When you're angry you forget about everything. You don't mind economic indicators. You forget about market forces. All you remember is that you need to earn money. But you totally forget about analysis. When you're too excited you can't make feasible decisions. Thus, you open positions not because your trading strategy suggests so but because you want to become a Bitcoin millionaire. Some traders picture in their minds cars & houses they'll buy after big wins that generally never happen.

The Psychology of trading is a subject not often discussed ==22==and dealt with. Bitcoin traders usually keep themselves busy in finding a trade system or strategy that works for them. Finding the right trading system is indeed crucial, however, understanding the psychological aspects and barriers of bitcoin trading should not be neglected.

Stick to a strategy to block out noise caused by shortterm factors & aspects that can affect long-term profitability. Look at what the trading charts are showing you, the btcusd market is always right, never ignore what the trading charts are showing you. Finally back test ==22==and refine your analysis of charts to improve your bitcoin strategy.

The Psychology of Bitcoin is very helpful and useful in controlling emotions. Emotions are very powerful forces in any investment market. This is why traders should have a good strategy.

A good trading system will consistently produce profit over the long term if properly followed, so be sure to control your emotions, do your homework, & stick with your plan and the pieces will fall in place.

Bitcoin Trading Plan - How to Improve BTCUSD Trading Psychology with These BTCUSD Trading Methods and Tips

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