The absence of a clear plan always leads to losses in the long run, as the trader constantly gets into situations where he grabs his head and does not know what to do. In order not to be a hamster, like 90% of market participants, it is important to have a "what if" plan.
When a trader has a clear plan, he saves himself from impulsive buying and selling, and from deadly inaction when he needs to sell assets at a loss (yes, this happens, no matter what anyone says).
What does it take to make a plan?
It's very simple. Before buying or selling any coin, it is IMPORTANT to take a notepad and pen and make a note for yourself, for example:
1 Purpose of purchase? - Speculative transaction or long-term investment;
2 Is it profitable to buy now? - There was a serious downturn in the market after fake news, etc.;
3 What kind of project is it? Who are the founders? What funds invested? - Cool blockchain, cheap transactions, a team with a huge portfolio of successful projects, etc.;
4 Selling price? - x2 of the purchase price;
5 What to do if the spill is more than 50% of the entry price? - buy more at % of the deposit;
6 How much to sell at a price of x2 - sell half or sell everything, etc.;
You can also write down for yourself a certain number of key points and make it a rule to answer all your questions.
By creating such a note you will save your deposit from ill-considered purchases and sales after the first spill or growth, which will certainly happen and you will start to panic and fidget, ask stupid questions in chats, for example, you have already seen such: "What do you think, should I sell at a loss or hold?" or "Is the coin already possible to buy, is it cheap?" - this is how typical hamsters behave, who will soon be left without their deposit, and then will shout that the crypto is a "scam".
Again!
Lack of a plan ALWAYS leads to panic, and panic always leads to impulsive actions, due to which you lose your deposit or lose profit in the long run.
