This is my second post in my trading for beginners series. In this article I am going to discuss the main fundamental of trading in cryptocurrency. BUY LOW, SELL HIGH. This sounds so simple and it is - but for some reasons the way humans are built, we somehow manage to do the opposite on a surprising regular basis. This article will help to explain why.
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This concept is fundamental to understand because all the charts and analysis in the world won't work until this becomes your foundation mindset. So why is that the majority of people can't implement this simple strategy? Simple, they wait to follow the herd and by the time the herd are buying a coin or token, it's usually too late.
The above graph shows the psychology a trader will probably feel when applied to a moving price. It outlines how human emotions are impacted by how a price is behaving. They key fundamental to trading is managing one's emotions in order to be able to buy low and sell high.
In article three I will dig deeper into this graph and how to use this in your trading toolkit to better handle your emotions and make more profitable trading executions.
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