You can know all the terms, speak in smart words, read a million books, be subscribed to 100 channels where the market situation is discussed all day long in chats, be able to draw useless lines, take a million courses, but none of this will bring any results if the market participant is not doing well emotionally and has not figured out the most important thing - psychology.
As everyone knows, 90% of people in the market lose and only 10% earn. Of these 90% of people, the majority lose not due to a lack of knowledge and inability to analyze but due to thoughtless, hasty, and emotional purchases and sales.
Every beginner understands that to earn, you just need to buy cheap and sell high; it sounds simple, but in practice, it happens exactly the opposite.
A person spends time on analysis, gathers information, makes a decision, and buys a promising coin, for example, at $10 per coin, hoping for a x3 (for example), meaning they expect to sell for $30. Then what happens is what happens in the market every day - volatility, and most likely after the purchase, the person sees a drop of a couple of percent, and then if the stars align so that the time frame when they bought coincided with some FRS meeting, the person sees -20%.
During this time, naturally, a negative news background appears, and the person gets the thought of selling. There can be many developments, I won’t list them all, but most likely if the drop is prolonged, the person sells at a loss. The coin remains in their favorites, and after a while, they see the price at $20 - remember that this is a cool coin and their goal was $30, they decide that now they will definitely wait and buy, and then everything goes in circles.
Why does this happen? It’s simple, very simple - it happens because the person does not have a clear plan and understanding of 'what to do if ...' and this is a huge mistake.
Before buying a coin, you should take your smartphone or notebook, or laptop and write down 'why am I buying this coin' and the points:
1 - the coin is a promising blockchain
2 - the coin has a good development team
3 - funds have invested in the coin
4 - there is movement visible in social networks
5 - there is noticeable activity on the project
6 - the project's roadmap is working and the points are being quietly fulfilled
7
8
And so on.
My buying interest zone is $10-$7
I will buy more during a drop of 50% or more
My selling interest zone is $30-$40
If your note looks something like this, you can confidently buy 5-10% of your deposit and leave about the same amount for buying more in case of a fall.
With this approach, you are ready for growth and know where you will sell, which excludes the possibility of emotional selling when there is a +10%, for example. You are ready for the fall; moreover, you are satisfied with both options because in the first case you will make a profit, and in the second, you will increase the number of coins. You are also not worried about a prolonged drop (if there is one) because for this particular coin you spent only 5-10% of your deposit, and it doesn’t affect you; you are not worried that it will stay for a couple of months, and you won’t make a thoughtless sale because you saw something new and want to buy; you have free funds for that case.
Well, and then it's a matter of self-discipline, which you need to work on.
Writing such a note is also useful so that you don't buy all sorts of junk, because when you open your notes and don’t know what to write, as you know nothing about the project, don’t know the team, don’t know the funds that invested, haven’t seen the social networks, then at the very least this should make you think again, is this really a good coin?? And do I really need to buy it?
Believe me, if after reading this article you make it a rule to write such a note for each coin, it will help you gain profit in the long run if your analysis is more or less good, and if the analysis turns out to be not the best, it will help save your deposit from huge losses and minimize them if not to zero.
Closed club - $