The most important thing in any financial market is psychology. You can know all the terms, speak smart words, read a million books and subscribe to a hundred channels where the market is discussed for days on end. But all this is useless if you have problems with emotions and have not understood psychology. đ
Everyone knows that 90% of people in the market lose money, and only 10% make money. And the reason is not a lack of knowledge or analytical skills, but rather rash, hasty and emotional decisions. đž
Beginners understand that in order to make money, they need to buy low and sell high. Sounds simple, right? But in practice the opposite is true. đ€Šââïž
The scenario is typical: you spend time on analytics, collect information, and decide to buy a promising coin for $10. You hope for x3 and expect to sell for $30. And then volatility happens, and you see a drawdown of a couple of percent, and then - bam! - and -20%. Negative news and you're thinking of selling. The sale is negative, the coin is in your favorites, and after a while you see the price of $20. You remember that this is a cool coin, and the goal was $30. You buy again, and everything goes in a circle. đą
Why is this happening? Because there is no clear plan and understanding of âwhat to do if...â. This is a huge mistake. đ
Before you buy a coin, take your smartphone, notepad or laptop and write down: âWhy am I buying a coin?â And points:
1. Promising blockchain
2. Good development team
3. Large funds invested
4. Activity on social networks
5. Project activity
6. Project roadmap is being implemented
7. ...
My area of ââinterest for purchase: $10-$7.
I will buy more if there is a drawdown of 50% or more.
Selling interest zone: $30-$40. đ°
If your entry looks something like this, feel free to buy with 5-10% of the deposit and leave the same amount for additional purchases in case of a fall. This approach eliminates the possibility of emotional selling at +10%. You are ready for growth and know where you will sell. You are also ready for a fall, because in the first case you will get a profit, and in the second you will increase the number of coins. đȘ
Long drawdown? Not a problem, because only 5-10% of the deposit was spent on this coin. This doesnât make a difference, and you wonât worry if the money hangs around for a couple of months. You have free funds for new purchases. đ§ââïž
Then it's a matter of self-discipline. Write down notes like this so you don't buy crap. If you open the notes and donât know what to write, this is a sign to think: is it worth buying this coin? đ€
Believe me, if you make it a rule to make such notes on each coin, it will help you make a profit over the long haul. And if the analytics turns out to be not the best, this will save your deposit from huge losses and reduce them to a minimum, if not to zero. đŠŸ
