🔥 1. This is sincere advice from an experienced trader. For those who are just starting out.
The reason I often talk about MONEY MANAGEMENT is that I know many of you have not experienced the feeling of 'bankrupting' 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 as 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 easy money, the market is so good that just holding your phone can earn money... To the point where you consider dropping out of school or quitting your job to focus 100% on trading.
Experiencing fear and confusion when losing all your invested money along with interest.
👉 I am sure that once is not enough for you to fully understand. Therefore, take another part and continue investing. Then, you will go through the story again as above.
I hope that after a few experiences, you will understand better. Please read again about money management and try to adhere to it.
Many people only advise you but do not guide you on how to do it. This is the right way to do it.
🔥 2. Greed: Gamblers tend to want to earn high profits quickly and may not accurately assess risks in their trades. They may continue to invest even though they know the market is declining, just because they hope the prices will rise again.
Psychological influence from the market: The Crypto market can change very quickly and strongly. Therefore, investors can 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 instead of on 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 are losing money. They may feel pressured to make quick decisions, without enough time to analyze information and understand the market.
Confidence and naturalness: Successful investors may become overly confident in their abilities and easily become gamblers, seeking new and larger trading opportunities without assessing risks. They may be enchanted by previous success and believe they can earn more money in the future.
Therefore, to become a successful investor in the cryptocurrency market, you not only need knowledge about the market and analysis but also need to monitor and control emotions.
#MarketDownturn #BTC☀
