We have all been there, staring at the chart till the point when your eyes are so dry and numbers don't make sense anymore and look like an alien language. You waited so long to make a move for so long you are no longer sticking to your strategy, you just want to do something. And then the pump starts and you think you are riding the wave. Let me tell you something my friend, if you are looking at the wave and you didn't buy way before well...it's too late now. Fifteen minutes later you are few bitcoin lighter and royally pissed.
Why are you a few bitcoin lighter? You didn’t prepare the right way. And I'm not only talking about your technical analysis, that you didn’t see the FIB line or you failed to recognize that a major support level has been breached.
This comes way later, your first mistakes came much earlier.
No, I'm not going to give you a magic formula and I'm certainly not going to promise to make you 300% percent returns on your investment. What I'm about to tell you will help you become a better trader, but you have to do the work.
A few simple tips can boost your chances of making the right choice, it's all about the preparations. If you buy the first coin you see and turned a profit, that’s just luck. If you buy a coin because you deducted it's going to go up and then you recognized its peak and sold it, that’s skill. Skill takes time. Skill requires the space so it can grow. You need to create that space and nourish your brain in order to develop your skills.
1.Turn off the trollbox
It's called a toolbox for a reason. It's fun if you came to socialize, I come to exchanges to make money. It's only a distraction, it's purpose is to influence your choices and sow disinformation. Its should be called evilbox. Just turn it off. Stay focused.
2. Do your own research
Before you make a move on a coin make sure to do your due diligence. Set up a google alert for news on a coin you are planning to invest in. Read up on CoinTelegraph and CoinDesk. NewsBTC has very good charts and solid technical approach. Coinmarketcap should be your homepage. BullBear is my favorite, and the subscription is well worth the money. If you don’t want to pay, follow the above sites on social media and weekly bitcoin price breakdown on CoinTelegraph. Find your own sources.
It is imperative that you read articles coming both from currency supporters and opponents. Your opinions should be formed based on data and not emotions. Question everything because most people have an agenda - especially the ones who say they don’t. Creating a sound thought process will build confidence.
You need to balance technical data and development news, never focus on just one. Learn what is the application of the asset you are buying - is it used for store of value, or is it exchanged for good or services. This is the key to making money on crypto.
For the record, my agenda is to share some good advice and make some Steem doing it.
3. Use social media to stay informed
I recommend creating a list on Twitter - it's best for staying constantly updated. The speed with which you acquire market knowledge is the difference between 2% gains a 20% profit. Follow every exchange and core developer you can find. Follow every coin you are trading and every big player you know of. Avoid the loudmouths, they just make noise. Big dogs don’t need to bark.
That what's trading is about - recognizing an opportunity and being ready to turn that opportunity into real money.
Part 2 will come soon, next time focusing more on the body, brain and your workspace when preparing to trade. Hope you enjoyed this post.