I hope you are inside this publication after having read the 4 previous lessons, in this way you can understand what we are talking about here, because in this last part of the guide to achieve success as a cryptocurrency trader, we will be delving into the explanation of the way for everything explained to work and the bad to be eliminated.
Your trade diary will be in charge of keeping track of each of the decisions you make for the opening, vigil, and closing of operations.
It is the best way for a cryptocurrency trader to objectively self-evaluate, so that it can eliminate errors and improve its operation constantly.
The success of a trader or investor is a product of discipline and perseverance for the use of only 2 tools:
- Trading plan
- Trading Diary
With the first, the commercial activity will be governed by specific rules that lead him to make effective decisions to the investor, without being influenced by the emotions for making them. This will include everything related to trading strategy, monetary management, operation monitoring, profit taking, total closing, among others. For a more in-depth explanation, visit lesson number 3.
While the 2nd will tell you if you are effectively following the rules, improve those that do not work, and realize when it is you who is doing things wrong. Here you understand the importance of maintaining a balanced psychology, good risk management and monitoring of parameters.
What should my cryptocurrency trader journal keep?
In the newspaper you must write absolutely everything that happens before, during and after your operation.
Keep emotions in mind, write down and describe their impact on your decision making; internalize that nothing should be improvised.
Be 100% honest with yourself. If you deviated from your obligations as a trader when entering social networks, playing video games, watching movies, write it down; You will probably realize that a good part of the bad results is due to the misuse of time.
Take screenshots if you use technical analysis; Describe your argument for making a decision based on fundamental analysis. With the passage of time, you will improve the way you understand the information if you use your trading journal correctly.
A trader may have a poor trading strategy, but if he strictly respects the rules of his plan, he will hardly take his capital to bankruptcy; On the contrary, it may improve rapidly when evaluating your errors reported in a trading newspaper.
Likewise, an effective strategy can lead to total loss, if the investor does not respect the rules constantly.
The trader must understand that he enters a profession of probabilities, so he will never have total control. Thus, he accepts the losses, and understands that they are part of the game.
It’s amazing how much you can learn from yourself after a series of evaluated operations. This is something you will not learn with any book, course or mentor, the only way to achieve success is thanks to experience, enjoying the process and learning from mistakes.
Thus we come to the end of this guide of 5 lessons for you to achieve success as a cryptocurrency trader.
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Creative editor and trader of cryptocurrencies, fiat currencies and commodities.