Reduce unnecessary trading, and you will be closer to success.
Unnecessary trading is a major cause of losses and poor mindset, and is also a significant reason for developing bad trading habits.
Unnecessary trading mainly manifests as randomness in trading, impulsiveness, following the crowd, and a frequent desire to trade in any situation.
In simple terms, it is trading that has no value. Trades that are disproportionate in risk and profit. Trades made at the sight of any opportunity. Trades that do not miss any opportunity. Trades made whenever there is price fluctuation.
Most of the time, the market is in a consolidation or slight fluctuation state. This means that in most cases, there are no good trading opportunities in the market. Unnecessary trading occurs in this state.
In this state, any trade at best results in a break-even outcome. Furthermore, human weaknesses ensure that in most cases, trades end up in losses.
Speculation is betting on opportunities. If there are no opportunities, do not enter the market to trade.
It is like hunting; you don't shoot unless you see the prey. Reducing unnecessary trades is like saving bullets. Cherish every bullet and use it in the right place. Do not indulge in the joy of shooting.
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