3 Habits of Successful Cryptocurrency Traders

While most of the cryptocurrency trading community is abound with how 95% of traders lose their money trading cryptocurrency, not much of application is given to those few but highly successful cryptocurrency traders.

What makes a trader successful? Is it the trading strategy that they use or is it that they have access so something else which most retail traders do not?

Well, it might seem mysterious but successful cryptocurrency traders are in fact no different than normal traders. There are just a few things that they do differently which sets them apart from the rest.

So let’s take a look at some of the habits of successful cryptocurrency traders.

1- Discipline: Greed is one of the biggest reasons why traders end up losing money. Greed and even fear in trading can be managed by discipline.

Discipline in trading means that traders have a specific cut off limits. Cut off limits for both profits and the amount of loss they can digest. When either of these limits are reached, they do not trade any more, no matter how strong the cryptocurrency signals are.

One might have heard about over trading, this is nothing but greed or having to over trade simply to make up for the losses. If you reach your daily or weekly profit levels, take a break. Same goes for when a daily or weekly loss limit is reached.

2- Understanding the markets: In terms of knowledge of the cryptocurrency markets, whether it is technical or fundamental analysis, successful cryptocurrency traders are just the same. They don’t have some special knowledge but rather apply what they have learnt.

Sometimes traders tend to trade based on impulse or after seeing a large bullish or bearish candle hoping to ride the trend and make a quick buck. A successful trader on the other hand would rather wait and enter at a more opportune time or when price action dictates with a quantifiable profit and stop loss levels.

This calculated tactical approach comes from experience and only when one has a true understanding of the markets.

3- Know the markets: There are many instruments to trade. From cryptocurrency to CFD’s and futures and each of them present an opportunity to trade and to make money. But, to draw a parallel, is it possible for someone to eat everything that is served on a buffet table?

Likely not! The same it is with traders. Successful traders tend to pick out the markets they can understand the best. In other words, don’t be a jack of all trades, just master one.