🎯 1. This is sincere advice from an experienced trader. For those who are just starting.
The reason I often talk about CAPITAL MANAGEMENT is that I know many of you have not experienced the feeling of 'bankruptcy' of your account, losing money without understanding why, losing faith in the market...
Therefore, my advice is: Divide your money into 5 parts when participating in the market.
Take 1 part and consider it the only amount to participate in the market. (Forget about the other 4 parts)
Deposit money into your account and invest freely. Play like a person who wants to invest.
You will experience 2 feelings:
Excitement when making money easily, the market is so good that just holding the phone can make money... To the point where you think about dropping out of school, quitting your job to focus 100% on trading.
Experience the feeling of fear and confusion when losing all invested money along with interest.
I'm sure that once you haven't fully understood. So, take another part and continue investing. After that, you will go through the story again as above.
I hope that after a few experiences, you will understand better. Please read again about capital management and try to adhere to it.
Many people just advise you but do not guide you on how to do it. This is the most correct way to do it.
🎯 2. Greed: Gamblers tend to want to make quick profits and may not accurately assess the risks in their trades. They may continue to invest even though they know the market is declining, just because they hope prices will rise again.
Psychology influenced by the market: The Crypto market can change very quickly and strongly. Therefore, investors may become more emotional and easily influenced by those changes. If prices drop, they may become anxious, uneasy, and may make wrong decisions based on emotions rather than accurate information and analysis.
High risk: The Crypto market is a very risky market, so gamblers may feel pressured to make decisions, especially in cases where they lose money. They may feel pressure to make quick decisions, without enough time to analyze information and understand the market.
Confidence and carelessness: Successful investors may become overly confident in their abilities and easily become gamblers, seeking new and bigger trading opportunities without assessing risks. They may be seduced by previous success and believe they can make more money in the future.
Therefore, to become a successful investor in the cryptocurrency market, not only do you need to have knowledge about the market and analysis, but you also need to monitor your emotions.
#MarketDownturn #BTC☀
