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Many traders do not really understand how important this is, if you go against the trend the chances of failure in trading is high. This is why identifying the trend for the day is one of the most important aspects of trading and it should be something that every new trader should do before choosing or making trending decisions. Identifying the trend should be simple, just find the Higher highs and higher lows, or the lower highs and lower lows etc.
I lost some money, decided to chase the market to make it back.
Because of the plan to flip my account, I was always in the market, looking for positions to take. Even on the weekends where trading is risky, and false moves can be much, I did not give myself a break.
- Trading every coin instead of choosing a few that I could understand their movement
Those are the few lessons I learnt from failure, what did you learn?
These are valuable lessons we must learn as a trader, in other to be in the market for a very long time because one thing about trading is knowledge alone is not enough, you need to know how to react at any given point in time so that you wouldn't record any big losses, that's why emotional trading is very destructive to any trader more than anything else, so we should keep off from it if we want to stay long in the market.
Another thing I have learnt in trading is that losing is inevitable, but avoid big losses is what separate a profitable trader and an unsuccessful trader. A successful trader knows when to cut his losses, while and unsuccessful ones will rather blow up his account than cutting his losses.