Do you guys follow some rules for buying and selling? Let's say, for example: only sell when I have a 15% increase in my initial investment.
Hmmm, I used this rule when I started trading, it was a few months ago or a year ago, I can not remember, but I realized that it was a very bad strategy because you do not make much profit with this strategy
What should I follow in order to avoid losses?
good point, let's start by explaining the basic market, demand and supply, you have a project to sell eggs ... but you do not have customers to buy these eggs, you think it's worth just taking the risk and investing in a project that There are no people to buy (no demand)? Of course it's not worth taking this risk, so this example applies to altcoins. Many altcoins are good projects, have genius in the team, but dude we have to know about what exactly this project, the project may be good, but not have demand, imagine that I am a geniu and create a way for people to fly without needing helicopters and airplanes and this innovation is low cost so poor people can buy, this will have demand, this is a good project to invest, but the altcoins have meaningless projects, something like bitcoin jesus, porncoin, are projects meaningless/
I'll give another example:
Did you see what happened to verge?
Verge partnered with a pornography company, but before people knew what the partnership was, investors had high expectations that it would be a big company, when investors knew it was a porn company, they dumped their verge, but why the Do investors do this?
because let's be honest, how many people pay to watch pornography? There are few people and of this small number of people, how many will use verge? There will be few people, so the demand for verge will be very low. investors make these calculations in less than a few minutes and dumped they verge.
And that's why investing in long-term bitcoin is better option
The guide I will write you here will not be about numbers or percentages about when to sell or to buy, is more for you have them in account before to sell or to buy any asset or coin. They will be more helpful for you at the trading world.
In the trading world is very important to control your
ambition and your
fear. This means if you bought at dip and your investment is having enough earn for you, try to control yourself and sell with profit. Sometimes your brain will say you to wait "to earn more", but it can
betray you.
The opposite thing happens with the
fear, for example, if you buy at any price and the investment start to go down instead of up, your brain can start to be scared and you could sell with losses , so you have to learn to control your thought and to know that when any coin or asset goes up or down, sooner or later it will turn back.
Maybe you will ask to yourself, how to learn to dominate or control those things? Very simple, in practice.
I hope to have helped you...I agree
...according to coin's potential.
That's what I was talking about, we have more than 1500 coin listed in the coinmarketcap, but few will survive in the next few years and when governments intensify the regulation, then very few projects will survive
