By Augusto Novoa, Finanflix.
Before going to war, one should prepare himself. I see the crypto markets, especially futures, as a psychological battlefield. Anyone can make money during bull markets but to be able to carry on during bear markets, with their harsh volatility, blown stop losses and random price action requires a different type of preparation.
Trading isn’t about winning and making money every time with every decision you make as the majority thinks. It’s about conserving the money you have made and limiting the losses as much as you can with proper money management techniques.
That requires an elite level of mental stability one should develop if the urge to trade crypto futures is stronger than oneself.
The ability to make quick decisions based on random price action is an art by itself. An art that takes time to master. An art where determination takes the lead. You have to be able to lose your conception of “losing” if the trading plan was executed correctly. Every trading plan has different amounts of expected losses (win rate). The quantity of wins or losses in a strategy has nothing to do with the amount of money one can make trading the markets. You can have a low win rate, as I do myself (20%), and …
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