This is a lesson I needed to learn the hard much earlier in my crypto trading experiences. I thought I'd share this
So you gathered some monies together and you decide "Okay, I'm becoming a millionaire trading BitCoin and other coins!!! BTC HYPE!!!". Then you go on the trading platform, try your first trade and it's a success! You made a profit of sorts. Then the wheels start turning and you think:
- You know, if I did the same with a bigger amount, then I'll make some really good money
OR
- If I did this multiple times per day and GO ALL IN ALWAYS, then I will be a rich man (or woman)
If you entered this with greed, then you have already failed. Trading is a delicate balance that has risk and rewards. Adding greed only masks out the risks and makes you see the rewards. That's how you fail on a basic level.
My example:
- The very first coin I successfully day traded was VertCoin (VTC). I was so happy cause I made like 10% and thought this was easy (haha!)
- The next few coins I tried (no research, nothing just going in blind) I didn't get high returns but still got returns. Then I was thinking oh I just need to GO ALL IN with one coin to get the job done
- Then you do this, and the coin does not yield your return in the time you expect. Your ego gets bruised and you short sell. This repeated often and my money just got less and less until I wisened up after the first bear market crash.
In the general case, YOU ALWAYS LOSE WHEN YOU SELL. When starting trading people don't realise this when they start trading. Because that first trade was a success, you carry that with you throughout you journey, wanting to repeat that first time success.
The other point is that YOU NEVER GO ALL IN WITH ONE COIN. Unless you checked all the checkboxes, it is never worth going in because:
- It LOCKS UP ALL YOUR MONEY AND ALMOST FORCES YOU TO PANIC SELL because of the psychological effect this has
- It PUTS YOUR PORTFOLIO IN HUGE RISK OF GETTING INTO LOSS. Unless you checked the checkboxes, you will always be at risk.
So when trading, yes you will make risky decisions. But MAKE THE DECISIONS YOU CAN AFFORD TO LOSE SO THAT YOUR PORTFOLIO AND HEART IS AT EASE.
I feel that I needed to say this given the activity in the bear market for the past few weeks. Sometimes I feel that reading this is too late a message for most. If you are in time, then learn from this.
Part of this message is the emotions I need to deal with from others suffering emotionally from the masternode pump and dump when being a SYNX admin. Those are the ones that will really feel this message the most. Fortunately I learnt my lesson before that, for others that would of been their first taste of this lesson.
BTC Address if you liked the story: 1LF8EPb4HgkU2wRQHCoJWpRU2E6pP3E16N