$XRP is Ripple, a crypto backed by 75 big banks across the world and gaining attention quickly. If I didn't sell so low, I probably could've made a lot more. But it's better to play it safe and I'm 100% satisfied with my results. I gained $400 in less than half a day basically.
What do I see today? My, oh my! Ethereum has gone down? PANIC SELL! HAVE TO AVOID LOSING ALL MY PROFITS!!!
Wait, what?
What is the thought process behind this? I prefer day trading instead of long term holds, however just because ETH has gone down like 10% doesn't mean I'm suddenly going to sell it to try to cover my losses. If anything, that makes the situation much worse. Litecoin has gone down, and so have many others. BTC went up though. What's the reasoning for all of this?
Well, there's like 100 different reasons for why a coin could up or down. Le Pen lost the election, which obviously politics has a HUGE role in coins and stocks (Want examples? Just look at how the markets freaked when Trump won or any other controversial figure!). Kraken had a DDOS attack which obviously effected ETH holders. The markets were bullish for quite a while and now it only makes sense for some cryptos to fall. XRP is still doing good but that's because you have to look at the volume.
High volume cryptocurrencies are much harder to move around. They will fluctuate, but when they to do you HAVE TO be aware of the news and what's going on in the world. A terrorist attack or a simple YouTube video could suddenly cause the markets to go haywire. All it takes sometimes is one whale, one news piece, one video and boom. Everyone joins in on the panic bandwagon.
I find it hilarious how Poloniex has a little trollbox. It's just the epitome of what most people are like when first diving into crypto (or investing in general). SELL! SELL! OMG IT FELL DOWN 1 POINT! FRICKIN' PANIC SELL, BURN THE HOUSE DOWN, FLEE TO BELIZE!!!!!!
I'm confident that in no time I'll regain my profits and make a very good amount when ETH hits $100. Now I do understand it COULD take quite some time before tat happens, but I'm definitely in no rush. Heck, if I had more money I'd probably buy a little bit of ETH right now seeing as it's down in the red. When everybody is burning their dreams alive, just take a step back and realize that opportunity is everywhere you look. Where there's panic, there's money to be made!
For now while ETH has to return back to normal, I'll be focusing on smaller coins and still keeping an eagle eye on the news. I'm happy that my Steemit account is rising in value, I'm happy that I'm able to make good profits off of reselling BTC (and that it just went up!), and overall I'm happy with the way the markets are looking. And you know what? Maybe it's a good thing most people are too emotional with this. I get it, hey.. it's scary and also extremely exciting at the same time! I go sometimes in on trades with my gut feeling, but I realize I'm a NOVICE trader. I'm self aware of what my weaknesses are. I'd prefer to day trade, however if need be I'll go for the long term game. Because in the end, long term is what everybody should strive for.
Do you want to know the single secret as to why everybody sells like a madman? Because we want it NOW!!!! Our society functions on instant gratification. And what happens when we don't get something immediately? We freakout and throw a temper tantrum. We throw our hands up in the air and run wild. Don't ever trade anything you're not prepared to lose. I want everybody to make money, but it sometimes gets a little too much to see such reactions. Worst case scenario: "Hope for the best, expect the worst!"