Today I had a talk with one of my friends who is now in Los Angeles for higher studies. We are good friends, and he knew that I am a bit into crypto currencies and have a knowledge of the same. He shared that he was trading on Coinbase and that he wanted to ask me for some top 5 coins from a list he shared to me. It was researched by him and few friends he made there so that was good.
Thankfully out of the ten coins he shared with me, I was aware about five coins and hence I recommended him those five coins and added a statement at the end that, "I choose five of these as I have little or no research about the others. That does not mean they are bad projects, they might be more valuable than what I have selected, always do your own research."
Later he shared why he was so confident with starting trading short term; he told me that he and his friends made some profit over the period of last few weeks. I told him that when you put a big amount you will probably end up panic selling or buying based on the situation. I explained him what a newcomer can do wrong when it comes to trading.
Day trading is not everyone's cup of tea but still I want him to try and that is why I advised him to stay away from highly volatile coins and stick to good projects like Matic, STX, etc. As a newcomer you have zero knowledge of holding on to your assets. As soon as you see your portfolio going down you might want to sell your coins and save yourself from reaching lower values.
So, I asked him to only stick to good projects working well with good development going on their chains like OP and ARB. I also told him to learn to hold his coins when they are down and that he should have a target set on which he wants to sell or book profit. target setting is also important because that helps us exit at the right time rather than panicking about when to sell.
That is all for today's blog, thank you.
