Greetings, I am not an everyday crypto trader, but I have some experience, and this has help me to understand what actually make crypto trader's to loose funds on trading is "trading without a set profit".
You see, having a target on the profit to make is very crucial in trading, take it as a car, we can not hop in our car or motorcycle, and be driving around the town without a particular place in mind that we are going to, sometimes, where we are heading to, might be a close place, and might also be a very far place.
what is important is that, we must have a destination, and not just driving without a purpose. In trading, it is just the same. Most of the times, we saw the signal very bullish, and we forget about our targeted profit, and want to get all the money we want that time.
Therefore, in this manner, what will happen will be that, the trader will end up not getting any profits from the trade, because he/she did not decide what was going to be his take home profit. Be it small or big, there have to be a set out profit target.
And I think with this, even if the person gets liquidated, at the back of his/her mind, he will not feel stupid or something, but will understand that the trade didn't reach the profit it want, and he was still expecting it to reach there, so it was the cause he lost that funds.
Yet, the good part is that, we can not get liquidated in a trade just like that when we are able to understand what we want. Most of these reasons is as a result of not decided to move on that road we want.
Having a double mind is very bad. To me, I see it as a set back, because it going to delayed your activities for the day, and not just will it do that, but will still not allowed the person to get the expected plans in the way he/she will.
I have this guy who do not like planning too much, he believes he shouldn't be using many of his times in planning, but any little time's, he set for it should be enough, so that it doesn't look like he is planning his plan. The deal is, each time he says it to me that he is always acting fast on his plans, so that it doesn't seems that "he is wasting time to planned his plans" I will just chuckle like a little baby right there.
But he is right at some route, because anything we have not decide will not give us a great results.
Back to the trading aspect, at any moment a trader want to get a far bags from a trade,
and he/she go in without the profit they want, they will find out that their pocket will become small and it will just be a wasted effort.
so, what's good today is for us to be reminded that we do not have to trade without a profit target, and if our trade go south at any time, depending on what trade it was, if it was spots trading, what best to do will be to hold on, because definitely, it will still come back to our winning margin. cheers.