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February 04, 2018, 05:52:31 AM |
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If youre a beginner, this post is for you.
There are two kinds of fear youre going to experience as a crypto trader. The first is FOMO, aka. The Fear Of Missing Out. This fear starts after you see a coin you were going to invest in or a coin you sold go to the moon. After that, you become afraid that youll miss out again.
Let me be clear. You are going to miss out. There are over 1000 coins, with a lot of them going up all the time. You cant catch em all, this aint pokemon.
The best thing you can do is let that idea marinate. Realize that there are hundreds of chances for you to make a lot of money, and there will be years of profitability here. Cryptos are here to stay.
FOMO is the main reason people buy too high. The truth is, whatever coin youre after, its going to dip at some point. Its this volatility that allows us to prosper so much. Boring, stable markets produce boring, small results.
Warren Buffet said, "The market is a device that transfers money from the impatient to the patient."
When youre jumping on every climb, youre going to get burned. Either buy and hold, or arbitrage are fine strategies, but neither work when you buy high and the panic sell. Do your research, keep a diverse portfolio and dont try to outsmart the market, because youll probably fail (see my signature for a good research group)
Which brings us to FOLE (fear of losing evrything). Everyone is scared of losing their investment. Luckily, you didnt invest more than you could afford to lose, right?
If you did, your fear of loss is going to dominate your decisions, increasing your chance of making bad moves.
Frankly, if you have too much in, take some out. If youre losing sleep, if youre making mistakes due to fear, its worth more to you to have less in the market. You will profit more in the long run. Wait for a high point and take profits.
If you do all that, you can trade without giving in to fear, and you will be much more successful because of it.
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