When the market is bloody, what do you do? Sell? Or Hodl?
Most often, people sell their coins when the market is bloody because they cannot contain the pain that comes with losing, especially when the money invested is meant for something important.
However, the market has proven time and time again that pain and pleasure must be controlled. One needs to know when to book profits when the market is up and how to cut losses when the market down.
All is not hunky-dory at the moment but you have to choose your risk. You have to choose whether to hodl until the market recovers, or you sell and buy the deep. The caveat is that no one knows when the deep ends, so you must be careful you do not miss out.
I sold Solana out of pain when it got to $8 but now, it is over $200. Same way, some others held unto Luna and it went to zero. This is a market of decisions, and the one you make now could either lead to pain and regret or pleasure and generational wealth.
Every crypto bull run in the past has shown a clear rotation of capital across various crypto assets. Usually, money moves first from stablecoins to Bitcoin, then to Ethereum and other large layer1 protocols, and then into various mid and low market cap altcoins. The start of this bull run has already seen new players with very huge pockets of liquidity pool coming to the market, these institutional investors think very differently from the regular retail trader/investor. So, the capital rotati
The highly volatile nature of the crypto market requires that traders wear the armor of confidence in order to withstand the daily arrows of fear, uncertainty and doubts.
There is high correlation between confidence and profitability in the market even though it is not exactly 100%. The fact is that, all good traders are confident in their trading ability.
Some people are just confident, but if they don’t have an edge in the market, it doesn’t matter; they’re still going to lose money.
One of the ways to develop an edge is find a successful trading system that captures in clear terms your entry, exit and risk management rules. For instance, an edge for entering a trade could be when;
- the 20 EMA crosses above the 40 EMA
- strong price action at key support levels.
For exits, you can either exit when
- Profit target gets hit
- Price gets rejected at an area of resistance
- Stop loss order is executed.
In terms of profit to risk management, a lot of traders eye an average of a 2:1 ratio
Confidence in the market also comes when you develop money management skills. This is because sometimes, a winning trade may not hit your take-profit, then the market’s trend shift bearish. In this case, it is your money management skills that help you to break-even and avoid the pitfall of watching a potential winning trade turn into a losing trade.
In conclusion, all good traders are confident in their system. They stick to what works and make the necessary adjustments to areas in their system that need improvement.
I don't know what your opinion is about the market but one thing is sure:
The single most important element in the market is having a plan, especially this bull run.
Here is why?
- A plan forces you to be disciplined in your entry, exit and risk management. This is an essential ingredient to successful trading.
- A plan also gives you a benchmark against which you can measure your performance.
Please do yourself a great deal of favour by developing a PLAN else you might be an exit liquidity strategy for those who developed and followed their PLAN.
In the short-term, you can be following the rules of your plans and still lose money. In such a situation you've not performed poorly.
The basic idea is that if you follow the rules of your plan, over the long run, the probabilities of success will be in your favour and you will come out on top.
One of the critical lessons in this market is that you can't win if you trade at a leverage size that makes you fearful of the market.
It is important to distinguish between respect for the market and fear of the market.
Also, while it is essential to respect the market and ensure the preservation of your capital, you can't win if you're fearful of losing. Fear will keep you from making correct decisions.
I look forward to an exciting week of trading opportunities 🌟
Please kindly note that this is not a financial advice #Dyor2024 $BTC $SOL $FET
The first year of my trading journey was purely a gamble. A gamble because I make a lot of money and then give it back to the market plus my capital. This became very frustrating that I began regretting my decision to trade and was almost giving up when it dawned on me to review my journals.
One thing I did wrong from the beginning of my trading journey was that I only journal my trades but never go back to review it.
As I began reviewing my journals, I noticed the same scenario was playing through all my trades. And guess what that was? GREED!
Greed has brought me unfavourable outcomes and nearly blew my account and sent me into debt. It was then I realised that my entire view on the market was highly faulty and porous.
I viewed the market as a place for *QUICK GAINS* and an opened door of escape from *POVERTY*. Thus, I took trades with very high expectations and out of the world kind of hopes.
Little did I know that the market is a haunty goddess who neither condones *GREED* nor forgives *FEAR*. As such, I was always at the mercy of the market until I discovered a feature on the Binance app which helped me mitigate risk and enhance profit. That is the *OCO*.
OCO means One-Cancels-the-Other. It is a feature that allows you to combine a stop order and a limit order. Which means, you can simultaneously indicate your profit target and a stop loss to limit losses. As such, anytime I set up a trade, I just simply indicate my profit target and my stop loss and then step away from the market to focus on other things. With that, I am confident that whichever direction the market chooses to go, I am covered.
That right there has saved me from the overwhelming greed and has brought some meaning to my trading. I now consistently take profits and I am making progressing well.
A few years ago, we decided to trade because we thought it was the quickest way to our financial freedom. However, we did not know that our decision would be severely tested along the way.
As beginners, we enjoyed the beginner’s’ luck. We made close to US$ 1750 within a week and we thought that was all about it; all rosy.
Unfortunately, our weak strategy and psychology was exposed by the market along the way and we were severely wounded.
But today, we are taking it a day at a time and making steady progress.
NOTE: Don’t wait for the market to expose you; work with a strategy. Remember every freedom must be duly paid for. #Write2Earn! #CryptoPreUSElection $BTC $FET $SEI
In September 2022, my husband and I received a gift of US$5000 as our wedding gift. It was that same year we started trading so we decided to invest the money into the market. Fast forward, we bought US$3000 worth of Solana(Sol) at US$32. After realizing a little profit, greed set in and we decided to go all in without a STOP LOSS.
We kept making profit until one evening in November 2022, where we excitedly went all in again without a STOP LOSS. That was when doom smiled on us. We woke up the following day with the news of the collapse of FTX and we saw our account dropped to almost nothing. We painfully checked out when Sol got to US$8.
With that deep loss, we never went back to the market until somewhere in May 2023. This time round, we traded Atom(Cosmos) but a similar fate still found us because we were neither disciplined nor using the right strategy.
However, we later saw our baby (Sol) rose to over US$200 this year and we kept regretting and wondering what our account would have been doing now should we have waited and not panic-sold.
Now here is the catch, anything is possible in this market but you have to learn to choose your RISK.
Just as some looked on to see LUNA drop to nothing; the same way others looked on to see SOL rise to over US$200. You have to CHOOSE your CHOICE.
This is not in anyway a financial advice; you have to do your own research. #Write2Earn! $BTC $FET $SEI