So many of you are brand new traders. When I was in your shoes, I was looking everywhere for advice. But every piece of advice that I got was different from one another.
SELL man! Its gonna crash!
HODL BRO! It will go back up!
How in the world do you make a decision, when everyone around you is screaming the opposite thing? Its tough. And it can really begin to play with your emotions, especially when you continuously make the wrong decision.
The funny thing is... our emotions can make us do the exact opposite of what you really should be doing, especially when you have too much invested for your trading level.
Say you are holding onto 100 Bitcoin... that is a lot of money. When you are holding onto this amount, you get antsy and worried about every little "tick" that happens on the charts. You keep thinking to yourself... "omg, it just went up 10 bucks I'm gonna hold and be rich!.." so... you end up holding.
Then 1 hour later, you see that it went down 20 bucks... and you begin to sweat and get worried that you will lose your investment... so... you sell.
Another hour goes by, you see the price shoot up 40 bucks! And you are like... son of a $##*@.... I could have made money on this.... So... what do you do? You buy back in higher than when you sold.
Now you are hyper focused... it starts to go down... "SHIT!!! What is wrong with me, I shouldn't have bought back in higher!"...
So what do you do? You sell... lol...
OK OK... yeah you get it now. So you can really see how your emotions can get in the way, especially when you are holding onto more than you should.
It is people like you who are losing in this Zero Sum game. Why? Well mostly because you are lacking discipline - meaning - you have made the mistake more than once, but you continue to do it anyways.
Well that really sucks, so what in the world do you do about it?
Take a step back for a second. Seriously. Are you looking at a chart right now? You probably are actually. Take a step back and look at the bigger picture.
Sure... when trading gets to a high volume state, narrowing down into a smaller timeframe is useful.
But... actually... from what I've learned... its better to hold to invest. Especially when you believe in the technology that backs whatever cryptocurrency or asset you are holding.
I will say though, one mistake I have made is that I have gotten WAY too attached to a coin... and didn't sell where most other professional investors would have sold. Actually, in some cases - I have lost money in longer term investments.
I became emotionally attached - and that isn't something that can always work out.
Yes, there are cases in the past where if you believed deeply & became emotionally attached, you may have become a millionaire... but in this crypto world. It's best to look at all the possible outcomes, and see what else is out there that may be competing.
Key take away's from this BLOG post is...
- Don't let your emotions get in the way
- Do not over invest, because this will drive your emotions into high gear
- Apply technical analysis, look at charts on a bigger time frame
- Become vested into a cryptocurrency or asset that you believe in, but don't become too emotionally attached
- Be true with yourself. Seriously. Ask yourself questions. Don't continuously think in the moment.
There is way more I can say here... typically, this is when I post a video. But I'm trying steemit out for kicks. Everyone on here seems pretty cool.
I want to a mentor to you guys, and help you as much as I can.
For me, to become financially free - is to have complete freedom.
I want to take you along this Journey
Thanks guys,
- BTCKYLE