Lack of capital or knowledge, which one is holding traders back from profits?
Lack of capital or knowledge, which one is holding traders back from profits?
Ths question came to my FYP on X and I could relate because at a time in my life it was the lack of knowledge of not knowing how to trade that was holding me back from making profit until I started learning how to trade from my mentor and I can make some profits when I get my reading of the market right. I also had the challenge of getting capital that I can use for trading because I was depending on my trading profits until I got to know that trading needs a trader to have other jobs because you can not only depend on trading profits when you do not know how to trade excellently. Other traders are having difficulties in trading because they do not have the right information that they need to become good traders or because they lack the capitals.
What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.
The common is lack of knowledge because if it was a capital, I have a few friends on a trading group whose capitals came from airdrops, meaning they only invest time to earn some airdrops that they can sell once listed from exchanges.
Knowledge is one of the very important things before you enter into trading and I’d like to suggest include BTC in your analysis because most of the coins are dominated by Bitcoin so you need to set a position in a Bias position if you want to win in a trade you set or only trade on the coins that’s not much affected by Bitcoin price fluctuates.
Another thing that gives you an advantage is if you know other traders where they place positions long or short reading the liquidation map and orderbook gives me advantage on where to entry and exit.
It’s more of a Lack of knowledge that trader is holding back to make a good profit because regardless of your capital as long as you know how to trade properly, you can have a good profit.
In trading, your knowledge is very important as you need to analyze the market the right way and also need to know how indicators works because trading is more about probability and analyzing, if you will just depend on any guess trade, then don’t expect to make profit.