I lost all my capital on the exchange – How did I learn from mistakes and become a successful trader?3 min read
Trading on the exchange, although it seems to be an easy profession, is not the case. There may be some truth to this, but it takes several years of hard work and capital to make you successful. You will often become a successful trader on the exchange only after several years of trading, after the realization of thousands of trades.
How did I start trading on the exchange?
I gained my first experience of trading on the exchange sometime 5 years ago. I started trading with brokers such as Etoro, where trading fees were high and only a small number of trading accounts with such brokers generated a profit. Cryptocurrencies, which I currently trade full time, were not so easy to buy at the time and little was said about them.
At Etoro, it was more about gaining experience. I started with a demo account, later I sent real money there. But I didn’t take it as my job. Later in 2016 and 2017, there was a lot of talk about cryptocurrencies. I started actively trading mainly on the Bittrex and BitMEX exchanges. It was only with cryptocurrencies that I felt the taste of real trading work and possible profit. Gradually, I started buying BTC, later I tried to get it in other ways in the form of various airdrops and other options for obtaining BTC. I often went crazy over the profit from BTC and spent the whole day trading and collecting BTC.
On the Bittrex and internet wallet exchanges, I mostly just kept BTC as the right rating. Later I registered on the BitMEX exchange and invested my first capital there. What led me to open an account there? On Youtube, I saw a lot of videos in which traders presented how they made 100% profits there in a day. Of course, the goal of these videos was to mislead them about their results, and they were intentionally edited so that we could entrust them with capital or buy their trading odds. All this was just a scam similar to most ICO projects.
So I put Bitcoin on the market and started trading similarly as the speculators presented in the videos.
So I started trading on BitMEX and the first profits came as BTC grew. Later, however, everything went in the opposite direction and I lost my entire account. One of the biggest mistakes I made was that I used a strategy that did not stoploss, but on the contrary, after the collapse, more contracts were bought for BTC. This resulted in me having the entire capital from this account in one trade. The liquidation price was $ 1,000 lower. So a decrease of about 15% was enough at that time and I would lose all my capital. Respectively, it would liquidate my account. This is exactly what happened. I lost my entire account for the first time. I deposited some of those BTCs on the stock exchange again and made the same mistake again.
Yes, the trading profession is not easy and includes losses. It is a natural part of creating a successful strategy. It is not for nothing that it is said that one learns best from mistakes. Certainly, if you start trading, do not buy after each drop, but enter a stoploss (the exception is, of course, intended – in this case, it is bought regardless of the current market trend). This will insure you against possible losses.