Hodl (Naija)

[Karl_3000]

Bitcoin price:
85,909,394 (63,100 €54,728 £46,817).

[BluebloodCXVI]

Well those who can’t take off their eyes off the chart are mostly traders, people who invest With aim of making quick profit in bitcoin. For someone who really want to invest in Bitcoin, especially when you are the type of person that let your emotions get the better of you, it is very advisable to use the DCA strategy, with that you are less concerned about how the chart is moving.

Consistent stacking up of Bitcoin using the DCA don’t just take that pressure off you but it also put you in a position where you invest with your discretionary income.

Why do you think looking at the charts is an attribute pertaining to only traders?

Don’t you know that even long term investors can also check charts too for different reasons like if they want to understand the market conditions, manage their strategies, for learning and analysis or just for them to be psychologically prepared.

Does this now make that person a trader?, of course not.

As long as you’re not reacting to every short term price swings and you’re sticking to your long term plan, you’re good to go.

Take for example someone who invested in bitcoin and saw it drop from $60000 to $30000, they might decide to look at the charts just so they can try to understand the size of the previous drawdown and probably to also remind themselves that volatility is normal in bitcoin.

It doesn’t necessarily mean that they are looking to sell just because of that drop in price.

[Karl_3000]

Bitcoin price:
₦86,084,917 (63,174 €54,782 £46,901).

[OsaiEmma]

People like that often lose money in their chase of quick gains and they are the kinda people they sell during the bear season and comeback to buy in the bull season, most times they end up in losses.

If you want to really control your emotion as a panic seller then I’d advice you to stop checking the chart daily or hourly because it would prompt you to sell rather you should put a target for yourself on how long you want to Hodl and you might check the charts once in a while maybe after a week.

The main difference between a hodler (an investor) and a trader is that: a hodler doesn't have a stop loss or a take profit, whereas a trader has those in place. If an investor is constantly checking the chart, reading the news, looking at price, just after a few months of buying and hodling, then they aren't ready for investment.

Investment takes time, it is not a short term business, so it doesn't make any sense whatsoever to constantly check the chart unless you don't even trust what you're investing in.

To my knowledge before starting trading, everyone should take some time to understand the market, control their emotions, be patient and develop a good strategy because without these, you will lose all the Naira you use in trading.

On paper, it is very easy. But in reality, it is very hard. You will see traders that are losing all the time, but the trader knows all these that he should be patient and avoid emotion trading and all other things, but he will still be finding himself losing. All I can say is that people should trade with the amount of money that they can afford to lose. This is the most important thing about trading. Most time it is just better to hold.

I know this was discussed a few months back, but I just can't help but comment on it because this just hit the nail on the head. Trading is more of an emotional game than a technical one to be honest, that's why there is the fear and greed index. The chart is simply just the everyday decisions of people willing to buy or sell an asset.

Don't get me wrong, I don't think trading is as simple as I said it; after-all, humans and emotions are the most complex thing ever, but there is always a pattern if you know where to look. And if you can control your emotions, you will be somewhat productive, but it is still dangerous especially if you're trading in the short term.

[Karl_3000]

Bitcoin price:
₦87,412,708 ($64,137 €55,608 £47,671).

[cocadalcan]

Don't get me wrong, I don't think trading is as simple as I said it; after-all, humans and emotions are the most complex thing ever, but there is always a pattern if you know where to look. And if you can control your emotions, you will be somewhat productive, but it is still dangerous especially if you're trading in the short term.

Many folk think that making money from trading is very easy. Among the new traders, there are those who think that they will buy when the market is falling and sell during bullish times. At first glance, this strategy may seem very simple, but there are many complex equations involved here. Those who have not entered the trading platform will not be able to understand this issue easily. Making emotional decisions The temptation of high profits and price fluctuations will tempt you to make wrong decisions. Changing the trading pattern according to the market cap and acquiring market analysis skills and taking risks in some cases are all associated with trading. I think the appropriate strategy is to use stop losses, and not to show financial power beyond your capabilities.

[Soldroplet]

Don't get me wrong, I don't think trading is as simple as I said it; after-all, humans and emotions are the most complex thing ever, but there is always a pattern if you know where to look. And if you can control your emotions, you will be somewhat productive, but it is still dangerous especially if you're trading in the short term.

Many folk think that making money from trading is very easy. Among the new traders, there are those who think that they will buy when the market is falling and sell during bullish times. At first glance, this strategy may seem very simple, but there are many complex equations involved here. Those who have not entered the trading platform will not be able to understand this issue easily. Making emotional decisions The temptation of high profits and price fluctuations will tempt you to make wrong decisions. Changing the trading pattern according to the market cap and acquiring market analysis skills and taking risks in some cases are all associated with trading. I think the appropriate strategy is to use stop losses, and not to show financial power beyond your capabilities.

I agree with most of your points. It is really not easy to make good decisions consistently just by looking at the market, especially for those who are new to it. However, I think a long-term Bitcoin holder should focus more on their financial strength, not on the charts. If someone has a regular income, some discretionary income, and a backup fund ready for times of need, then it is enough to follow a simple plan like DCA and gradually accumulate Bitcoin. I think when we buy Bitcoin with a time horizon of 4-10 years or more, it is more important to consistently increase your stack than to try to catch every price movement. No one knows for sure where the market will ultimately go, but continuing your accumulation is completely in your control.

[Sunshine1525]

Don't get me wrong, I don't think trading is as simple as I said it; after-all, humans and emotions are the most complex thing ever, but there is always a pattern if you know where to look. And if you can control your emotions, you will be somewhat productive, but it is still dangerous especially if you're trading in the short term.

Many folk think that making money from trading is very easy. Among the new traders, there are those who think that they will buy when the market is falling and sell during bullish times. At first glance, this strategy may seem very simple, but there are many complex equations involved here. Those who have not entered the trading platform will not be able to understand this issue easily. Making emotional decisions The temptation of high profits and price fluctuations will tempt you to make wrong decisions. Changing the trading pattern according to the market cap and acquiring market analysis skills and taking risks in some cases are all associated with trading. I think the appropriate strategy is to use stop losses, and not to show financial power beyond your capabilities.

If volatility wasn't a big deal in Bitcoin it would've been a bit different but Bitcoin is becoming more volatile and tougher to predict what the price would be which makes trading more difficult currently, those people who feel it's easy are speaking out of ignorance cause if they understand how volatile the market is they won't utter such.

Trading is the most risky way of getting profits in Bitcoin, if someone doesn't have a high knowledge of the market and how to analyse it then such person is wasting time doing it cause managing the risk would be tough. It's more better to buy and hold in a secured wallet then be consistent in buying if there's not enough to buy much.

[Karl_3000]

Bitcoin price:
₦88,343,413 ($64,137 €56,123 £48,122).

Many folk think that making money from trading is very easy. Among the new traders, there are those who think that they will buy when the market is falling and sell during bullish times. At first glance, this strategy may seem very simple, but there are many complex equations involved here. Those who have not entered the trading platform will not be able to understand this issue easily.

This is very true because I have noticed it too but trading is very risky. I will prefer to just stay away from trading and hodl my coins than to be trading and be losing my money. But if I want to trade, I will prefer to use just little amount of money which is small enough to the point that I can afford to lose it.

I agree with most of your points. It is really not easy to make good decisions consistently just by looking at the market, especially for those who are new to it. However, I think a long-term Bitcoin holder should focus more on their financial strength, not on the charts

This is a very good point, for me I still check the price daily but I do not have the fiat estimate of my coin.

[Primark]

Don't get me wrong, I don't think trading is as simple as I said it; after-all, humans and emotions are the most complex thing ever, but there is always a pattern if you know where to look. And if you can control your emotions, you will be somewhat productive, but it is still dangerous especially if you're trading in the short term.

Many folk think that making money from trading is very easy. Among the new traders, there are those who think that they will buy when the market is falling and sell during bullish times. At first glance, this strategy may seem very simple, but there are many complex equations involved here. Those who have not entered the trading platform will not be able to understand this issue easily. Making emotional decisions The temptation of high profits and price fluctuations will tempt you to make wrong decisions. Changing the trading pattern according to the market cap and acquiring market analysis skills and taking risks in some cases are all associated with trading. I think the appropriate strategy is to use stop losses, and not to show financial power beyond your capabilities.

You are right. Every investor, especially those who invest within their means, should understand it. But calling stop loss a suitable strategy for Bitcoin investors seems to be a mix of trading and long-term investment. Because we know that a trader can use stop loss to reduce his losses after seeing short-term price movements. But the main protection for a long-term investor is proper position size, discretionary income, emergency funds, and a suitable plan to hold on to it in the long term, not a stop loss.

 If someone invests money that will be needed for necessary expenses in the future 2-3 months later, then when that need arises, he may be forced to sell as a stop loss. Even if the market is down at that time, he will have to face a loss. Here, his mistake was not in selling, but rather he made a mistake by investing his necessary money in the beginning. Again, if someone buys Bitcoin with money that he will not be able to touch for many years after all his necessary expenses, then he will not be forced to sell even if it falls by 50%.

[Karl_3000]

Bitcoin price:
₦88,608,205 ($64,870 €56,280 £48,271).

[Karl_3000]

Bitcoin price:
₦88,824,838 ($65,210 €56,402 £48,304).

[Karl_3000]

Bitcoin price:
₦86,864,528 ($63,715 €55,200 £47,169).

[Karl_3000]

Bitcoin price:
₦86,503,491 ($63,488 €55,067 £47,039).