The most important thing in any financial market is psychology.
You can know all the terms, speak smart words, read a million books, be subscribed to 100 channels where you can discuss the market situation in chats for days, be able to draw useless lines, take a million courses, but all this will not give any result if a market participant is not doing well with emotions and he did not understand the most important thing with psychology.
As everyone knows, 90% of people in the market lose and only 10 earn; of these 90% of people, most lose not because of a lack of knowledge and inability to analyze, but because of thoughtless, hasty and emotional purchases and sales.
Every beginner understands that in order to make money 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 analytics, collects information, makes a decision and buys a promising coin, for example, at $10 per coin, he buys it with the hope of x3 (for example), that is, he expects to sell it at $30, then what happens in the market every day - volatility and most likely after a purchase a person sees a drawdown of first a couple of percent and then if the stars align so that the time period when he bought coincided with, for example, some meeting of the Federal Reserve System, then the person sees -20%
At this time, a negative news background naturally appears, and the person has the idea to sell; then there may be many developments, I wonât list them all, but most likely if the drawdown is long, the person sells in the minus, the coin remains in his favorites and after a while he observes a price of 20 $ - remembers that this is a cool coin and his goal was $30, decides that now heâll definitely wait and buys it, and then everything goes in a circle.
Why is this happening? Everything is simple, very simple - this happens because a person does not have a clear plan and understanding of âwhat to do if ...â and this is a huge mistake.
Before you buy a coin, you should take a smartphone or a notebook, or a laptop and write down âwhy I am buying a coinâ and the following points:
1 - promising blockchain coin
2 - the coin has a good development team
3 - funds invested in the coin
4 - movement is visible on social networks
5 - there is noticeable activity on the project
6 - the project roadmap is working and points are being quietly implemented
7
8
Etc.
My area of ââinterest for purchasing is 10-7$
I will buy more if there is a drawdown of 50% or more
My area of ââinterest for sale is 30$-40$
If your entry looks something like this, you can safely buy 5-10% of the deposit and leave about the same amount for repurchase in case of a fall.
With this approach, you are ready for growth and know where you will sell; this eliminates the possibility of emotional selling when there is +10%, for example. You are ready for a fall; moreover, you are satisfied with both options because in the first case you will get a profit and in the second you will increase the number of coins. Also, you are not worried about a long drawdown (if there is one) since you spent only 5-10% of the deposit on this particular coin and they do not bother you, you do not worry that they are jealous for a couple of months and will not make a rash sale from because you saw something new and want to buy, you have free funds for this case.
Well, then itâs a matter of self-discipline, you need to work on it.
Writing down such a note is also useful in order not to buy all sorts of bullshit, because when you open the notes and donât know what to write because you donât know anything about the project, you donât know the team, you donât know the funds that invested, you donât know social networks saw that at least it should make you think again: is this really a good coin?? and do I really need to buy it?
Believe me, if you read this article, make it a rule for yourself to make such a note for each coin, this will help you get a profit at a distance if your analytics are more or less good, and if all the same, the analytics turned out to be not the best, this will help save your deposit from huge losses and reduce them to a minimum if not to zero.
