The two main psychological problems of beginning traders, trading in flat and why you will not be able to earn on the cryptocurrency.
Lateral movement is the most incomprehensible time for traders. There is no tendency, it is unclear, to enjoy the growth of the course, or to bury dreams about a lamp. Trader pms because of constant tension, false breakdowns (suddenly not false, put stops or not set, so that they will not be demolished while the hamsters are being cut), spontaneous deals on emotions.
Spontaneous transactions on emotions. Here is the killer of your depot
Do not flatten or unjustified forecasts. Not having mastered the emotional condition, the trader loses connection with a reality and starts to conclude chaotic transactions.
The idea of trading at the outset is very simple, like the idea of trading on the stock exchange – buy cheaper, sell more expensive, repeat. But trading is not a principle, but a certain technology.
If you are more or less on the topic, you probably saw in the telegram-chats levels of purchases and sales levels from the local gurus? There is one problem – each trader has his own levels of buying and selling. For example, if you bought HYIP (with whom there is no such thing), to sell a top coin to yourself at a loss is the eighth sin. And the only acceptable option is to buy on the bottoms in order to average the purchase price (or catch a double bottom). And then sit waiting for the second coming, or rather until the market grows.
Therefore, the first thing to do for a break-even trade is to determine the levels. Not only support and resistance but also psychologically comfortable for your trade – at what level you buy, what you sell.
It is better to earn 10% today than 100% never.
Second – fix a relatively stable dollar or bitcoin (if the purpose of trade is to increase the amount of cryptocurrency). One of my trading teachers said that we do not sit for long in futures or options, we sit in dollars and futures – the instrument of the transaction, in which we enter and always go out. This principle is worth following in the stock market, because the expiration and the absence of strong volatility, but in the crypt differently – if you did not manage to get out in time, sit and do not jerk, grow the OO.
With the most common reason for plum deposit has figured out, go further.
We approached two basic psychological mistakes of beginning traders. Take for example the levels of the cue ball between which he is now dangling – at 12k greed awakens, at 7k, fear awakens.
Greed is treated by a phased fixation of profit, which excludes the constant fear of a market reversal before it managed to get out of position. For this, we determine our levels.
Fear in the case of cryptocurrency is a more complex problem than greed. Here you need not just to “catch the low” for purchase, but also not to succumb to the mass hysteria created by news about the next ban on regulators and obituaries bitcoin. It is not to cope with information pressure – the reason that someone loses money and leaves trading, especially crypto trading.
In the title, the promise of comparing HOLDa and trading, so why was the whole article about the latter?
Because true Holders who do not follow the course and have bought the crypt into long-term ones are not subject to greed at local levels, losses due to chaotic transactions and other joys of the life of traders. But they are extremely vulnerable when they see the negative and lose faith in the further growth of the market. Especially with such a prolonged fall, as now. And they need the same skill of containing emotions that trading teaches.
The advantage of holding in its passivity – you can do nothing, and a few Xs per year you will exactly poimeete with his crypt. The disadvantage is the lost profit, because the money that could work was a dead weight. But it’s safe. Trade – the exact opposite.
Therefore, in my opinion the best approach is to earn money on the Hryvnia – HODL + trading and competent diversification, in which profit will cover possible losses. Well and constant training, increase of the financial literacy and understanding of psychology.