Always Have A Grading Plan
Hello members of Leo finance of hive. The world of finance has so much to offer that if we are fortunate to make a right move, it could be life changing. If we’re not also so fortunate, it could be something else.
There are some basic things we are encouraged to know as people who are trying to find our feet in the cryptocurrency market and the financial world at large. Of course, no one is an expert when it comes to the crypto market because of how volatile the market is, but with certain basic knowledge and luck, you could be lucky. Before I continue, I would just like to say this is not a financial advice but something I’ve learnt and thought it’s worth sharing.
Trading plan is a word I heard often thrown about when I was getting into crypto. Anywhere I researched and from all the sites I searched for crypto related stuff, I always saw the word, trading plan.
Let’s let the word sink in for a minute. Even if we are not dealing with finance, we need to have plans for whatever we do. We have times we wake up, times we sleep, time we go to work, just to name a few and when it comes to trading a plan is always needed.
A trading plan as I understand is set of rules and regulations you set for yourself while making an investment. An example of this rule is that, you wouldn’t be caught in FOMO. FOMO is the fear of missing out. This happens when a particular coin has skyrocketed overnight and because everyone in the crypto world has that token, you decide to make an investment too. We sometimes realize that as soon as we buy, the coin’s value starts to dump or decrease or it doesn’t even move again.
This all happens when you don’t have a trading plan. When you have a trading plan that you follow, you wouldn’t be buying or selling in FOMO. We should note that trading plans won’t always give us positive results but it’s best to have one than just trade haphazardly.
One pro about a trading plan is that, you know the amount of profit you want to make or the amount of loss you want to take. With such, when the value of your asset hits such a price, you’re okay cashing out on your investment. When you do not have a trading plan, you’ll be saying to yourself, let me leave it for 5 more hours or for one more day maybe the price will shoot further.
I’ve mentioned trading plan a lot but the term goes with discipline, restraint and acceptance. You should be discipline enough to follow the plans you set for yourself and also to set one, you should have enough restraint to not go against it and not be caught in FOMO and you most definitely should accept the loss you’ve made from your trading plan.
Why I am saying you should accept the loss is that, the crypto market is a 2 way street. You lose it you gain. So if you set a selling price for $2.5 and it gets executed and you later resided the price doubled to about $4 after taking out your investment, do not beat yourself up. Say to yourself, at least I met my targeted profit and move on.
Crying over spewed milk and a loss that has already been won’t help you in any way and just makes you have misinformed thoughts.
So here it is guys, a basic thing you should know in the crypto world is the trading plan. Use it well and it will serve you great.
Thank you.
