Blockchain:Trading is not simply about predicting right or wrong.

7/28/2015 20:25 Read 55,814 views

Trading is not simply about predicting right or wrong. The most important thing about trading is not that you are right or wrong in predicting the market, what matters is how much you make when you are right and how much loss you avoid when you are wrong.

There is an old saying among traders: " Trading system area dime a dozen . "The sad truth is that many trading systems cost investors hundreds or even thousands of dollars to rent or buy. However, even so, there is still no one that can 100% guarantee that you can get consistent profits.


This is because you, the operator, are the most important factor in determining the actual profitability of the system.

1 The Right, wrong, results. Soros once shared a great lesson learned when putting together a bitcoin trading system, drawing on this experience to reveal the importance of the human factor, " , It' 5 not about being right or wrong . It ' 5 about making big gains when right and Iosing small when wrong . ' '

This statement can test many of the so-called trading bigwigs in the cryptocurrency world, many people like to look long or look control, brainless look long brainless look short, however when the real market soared a lot, he did not make much money, when the market continues to fall, he also did not do a good job stop loss.

Judging right and wrong this is not the basic quality of a good trader. A trading system is a statistical probability machine that overwhelms trading losses by ensuring winning trading profits and gradually making money.

Even if you only win 40% of the time the system can be incredibly profitable with a good strategy.
2. Proven statistics can provide traders with confidence. Bitcoin traders who have a strong belief in the statistics of their (properly back-tested) trading system are the ones who make consistent gains over time.

They are also a step ahead of free random (non-systematic) traders. because they have less risk pressure, no worries about when to buy a trade or when to exit a trade, and instead pull the trigger on the bitcoin market system at the right time and fire away.


3 The Who are you? The first task in building a bitcoin trading system is to assess your own investment psychology:.

a .The Do you prefer to limit your bitcoin market exposure to 14 days or less? If so, you may be a good candidate for swing trading.

b .Maybe you prefer to operate only a few times a year. If so you may be suitable for a large trend trade.

c. If you have enough money and a deep understanding of bitcoin, you can even do a "scale-out" bitcoin trading system. This is usually the way banks and hedge funds do it year after year.
However, this method can depend on the size of the various "inverse pyramid" positions, and it is not for the faint of heart, nor for those with very little money in their trading account (< 1000W).

d. Dead hoard, never cash fiat, identification of the faith, do not trade. Firmly hold until the day when everyday life can pay bitcoin or even global circulation currency for bitcoin in the future.

Then this article has nothing to do with you, you are not a trader. This means that you should not be concerned about the bitcoin market, let alone the price, because it has nothing to do with you either. Because IBTC will always = IBTC.
4 The Back to the topic, so what exactly is a bitcoin trading system? A bitcoin trading system is a combination of the following.

a. The access to triggers.

b . transaction management.

c . rollout of the trigger.

d . backtesting.

e . forward test.

f . trade size (position)

Trading psychology; your system may be simple (simpler is usually more effective) or very complex.

However, no matter what entry, trade management and exit triggers you choose, you need to back test it properly and perform prospective testing to determine if it is a potentially winning system.


5 The Example: A simple volatility breakout swing system: Here is a very basic but rational bitcoin trading system.

Entry, trade management and exit criteria are very simple for new traders to understand and implement. Trades usually last a week or less; profits from winning trades are quickly secured and market time is minimal.

a � The entry trigger: volatility breakout calculation generates a buy signal.

b , Profit Target: If the bitcoin price rises X dollars after the buy signal, the trade will end with a profit.

c . Volatility Trailing Stop: The Volatility Stop acts as an initial stop loss and as a trailing stop. It will help limit losses on losing trades, even if it locks in some profit when the price rises.
6 . things that are more important than the trade itself.

a . Trade size (position) : This will be one of the main factors in your ultimate success or failure as a bitcoin / cryptocurrency trader, note the main factor. Many professional traders limit their risk per trading account to a maximum of 1% or 20 / 0; they carefully limit the size of each trade to manage their risk of losing trades.

b , Trading Psychology: Manage your natural instincts of fear and greed, transforming them from trade killers to your most valuable trading allies. Rational and boring solutions instead of emotional trading a Once the basics of market price behavior are understood, building a bitcoin trading system is relatively easy.

Studying thousands of charts (in real time) can also provide you with a sharper, more intuitive sense of market direction. What is a bitcoin trading system? It is simply a rational, statistically based device that can help you make profits in the digital currency market. However, it is not a "no-lose" ATM machine that automatically puts large sums of money into your wallet with each transaction.

Also, consider the fact that without an expert level or sufficient understanding of trading positions and trading psychology, you will probably have a hard time experiencing the pleasure of a steadily growing account equity curve month after month and year after year. That thrill of the market gradually coming out to validate the correctness of your strategy.

Put in as much time as you can until you have mastered this before you invest a single penny in the bitcoin market. Instead of being compelled to enter the cryptocurrency market with a lot of money and buy such and such coin headfirst, even bitcoin is not for a brainless person who is a shuttle dead hoarder. Because he can neither hold nor trade correctly. What he will face will be a predictable tragedy of leaving the market after a substantial loss.

May there be less tragedy and more rationality in the cryptocurrency world. #Blockchain


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