1. Investing with “spare money”
Investors should remember that the money used for investment must be "idle money", that is, money that has no urgent and accurate use at the moment. Because if investors use the necessary expenses for family life to invest, in case of loss, it will directly affect the family's livelihood. Or, when using money that should not be used for investment to make money, psychologically, it is already at a disadvantage, so it is difficult to maintain an objective and calm attitude when making decisions, and the chance of failure in the investment market will increase.
2. Knowing oneself is the best
Know yourself and know your enemy, and you will never be defeated in a hundred battles. Investors need to understand their own personality, because people who are easily impulsive or emotional are not suitable for this investment. Most successful investors can control their emotions and have strict discipline, and can effectively restrain themselves. Therefore, only those who know themselves can ultimately win in the digital currency market.
3. Face the market and abandon illusions
The market is real, don't be emotional, overly look forward to the future and reminisce about the past. A senior trader said: A person who is full of fantasy, rich in emotion and very exposed is a beautiful and happy person, but he is not suitable to be an investor. A successful investor can separate his emotions, fantasy and trading.
4. Small investors should not invest blindly
Successful investors will not blindly follow the opinions of others. When everyone is in the same investment position, especially when small investors are also following suit, successful investors will feel dangerous and change their route. Blind obedience is a fatal psychological weakness of "small household" investors. As soon as an economic data is released, a piece of news suddenly flashes out, and the 5-minute price chart "breaks", they rush into the market. They are not afraid of losing money together, but only afraid of everyone making money. In a sense, sometimes misreading the market trend or the situation suddenly reverses after entering the order, resulting in the order being trapped, this is a normal phenomenon, and even experts are not immune. However, when it comes to how to make decisions and deal with the aftermath, the most stupid behavior is due to the psychology of small households.
5. Don’t Overtrade
To become a successful investor, one of the principles is to always maintain 2-3 times more funds to cope with price fluctuations. If you do not have sufficient funds, you should reduce your positions. Otherwise, you may be forced to close your positions due to insufficient margin, even if you are proven to be right later.
6. Once you have made up your mind, do not change it rashly. If you have fully considered and analyzed and have determined the price and plan for entry into the market for the day, do not change your decision easily due to the current price fluctuations. Temporary decisions based on day-time price changes and market news are generally very dangerous, unless you are an investment guru who has a sudden inspiration.
7. Make prompt decisions
There are many psychological factors that lead to failure when investing in the digital currency market. A common situation is that when investors face increasing losses and even know that they can no longer rely on luck, they often hesitate and fail to make a prompt decision, thus getting deeper and deeper into the trap and increasing their losses.
8. Do not implement other people’s opinions
This is not to advocate arbitrary decisions. You must know that you are the only investor who will be responsible for the results of your investment. When you have grasped the direction of the market and made a basic decision, do not change your decision easily due to the influence of others. Sometimes other people's opinions will seem reasonable, so they will prompt you to change your mind, but later you will find that your decision is the most correct. Therefore, other people's opinions are always just for reference, and your own opinions are the decision to buy and sell. #etf #ETH #BTC #Celsius #Polygon