So you really wanna trade crypto? Urrrm Okay! No problems...but I must warn you. Cryptotrading is not for the lily-livered. Its for those who have mastered their emotions like a YOGA Master! Its absolutely for those who have attained some level of inner peace.
If you still got those trigger fingers that is prone to make big mistakes, you are gonna lose alot of money. You are going to get too agitated/excited as the case maybe. So you lose money when you take actions in those states of mind. Let's explore what emotions you must control...shall we?
The commonest emotions I have noticed are "anger, greed, fear, overexcitement, regret".
FOMO:
Yesterday, we talked a little bit about FOMO. It simply mean "Fear of Missing Out".
In simpler terms, it implies that you did not get in on time in the crypto trends
So because you see others making profits, or some form of crowd mentality or peer pressure... you rush into the trend.
But after you rush in, the rest is history because the trend has already reached its peak.
Prices drop. And you cry. You just lost some money bro/sis.
CONSEQUENCES:
Now there are 2 things your emotions will tell you to do;
1- CUT LOSSES & SELL
2- HODL
Anger will make you take the more aggressive stance which is to sell at a loss. Depending on the % of drop and the size of your portfolio, that could be huge.
HOW CONTROL YOUR EMOTIONS
Think about this critically. If its a shitcoin then you definitely have to cut your losses. You shouldn't be trading shit coins anyway. On a good day, I will discuss HOW TO KNOW SHITCOINS & AVOID TRADING IT.
But if its a RealCoin, HODL! The prices will definitely come back up. AND you will recover your losses and even make profit. You really have to keep an eye out for the prices. I will teach you "An Easy Way To Monitor Prices Of Your Portfolios"
FUD
In simple terms this is Fear, Uncertainty & Despair
This is a form of Mind-Control carried out by the market maker to make you sell your portfolio.
When you sell en masse, prices drop and the market-maker then buys up your cryptos and prices go back up.
You were just flushed out of a good market position.
For example, this happened Bitcoin Crypto when the CEO of JP Morgan Banks, said that "Bitcoin is a fraud; a bubble".
CONSEQUENCES:
You lose your position in a trade. Now you have got to buy higher after selling at a loss.
You get angry. Sometimes other emotions like regrets may creep in.
HOW TO CONTROL YOUR EMOTIONS
In Cryptotrading, you have got to realize that what's done is done already.
You shouldn't dwell too much on your losses. What matters is picking up a lesson from that error and never repeating it again.
Do you know that? Even the professionals still make losses. Yeah they do. But their net gain always overtakes the net losses. Remember the market is very volatile.
However, watch out as I show you low risk, high yield methods to make profits.
We have to stop here. Coz I don't want to make it too complex for you.
@nairadaddy aka SteemDaddy. My aim is to leave you better than I find you everyday.