You are probably aware of the massive gains and losses that are occurring all around you in the crypto scene, and if you are like me, you want a piece of it!
But, if you are a new investor it can be very easy to make mistakes that cost you a fortune!
So, how can you go about investing without making expensive mistakes? EASY! Learn from the mistakes of others!! I have some rules that I ALWAYS stick to when it comes to investing, no-matter the situation.
Hopefully you can use these and save yourself some costly mistakes.
So, if you are new to investing, these will 100% be useful for you. Feel free to take notes!
THIS is how you find those undervalued investments that go to the moon almost over night, the ones you see going over 100x and you're kicking yourself saying "FUCK, I WISH I KNEW ABOUT IT WHEN IT WAS JUST 30 CENTS!"
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Do not let gains or losses control your hand, instead, make a plan, and stick to it!
Create sell/buy points, and set stop losses!
The best time to buy is during times of chaos and instability. When the markets take a hard hit, and prices are at their lowest, you should be buying. EVEN if your own investments are doing bad.
A good example of this is Bitcoin and SegWit. Try and think of every possible outcome that will come with SegWit, and try and predict how this scenario will affect the market.
If people are already talking about it, it has probably already made massive gains. But, that doesn't mean it is done making gains.
There are many people who claim they day trade, and many of them may claim they have made a great amount of profit day trading. I myself have done some day trading and yes, I have made a profit.
Here is the issue: By day trading (buying on pumps and selling during the dips throughout the day), you put yourself at risk of losing portions, or all of your stake. You cannot always predict where the price will end up, so if you sell at a high expecting a dip to follow, the price may never drop below your sell point, so if you buy back your stake, you will be buying back at a loss.
The best strategy for safety purposes is to buy and hold. Hold for a year, and accumulate throughout that period. If the price is where you want it to be after a year, then sell. But in general, holding is almost always the best strategy.
I hope some of these were helpful. I cannot guarantee you that these will save you from ever making a wrong decision, but I can say with confidence that they will prevent many bad moves.
Sometime's we have to learn the hard way, but if we can negate some losses by learning from the advice of others, I would take the advice!
Feel free to leave any comments, I would love to have a discussion.
Also feel free to leave me any advice you might have about investing!
I'm always learning :)
THANKS FOR READING
Stay Awesome
-Zey
