Like Biggie Said: "Don't chase 'em...replace 'em." I won't say which crypto I got in on and saw a profit, but I did something I knew was wrong and it cost me about 500 units. I will not state the crypto I traded because I don't want to imply a recommendation. I will never tell you what to buy or sell.
You must banish both fear and greed if you want to be a successful trader or investor. This is why most people fail. You need hard rules for when you will enter and exit a trade, and you can't deviate from those rules no matter what. Sounds easy, huh? It is if you don't think about it and you don't get swept up in emotion. It is contrary to what most of us have been taught.
While you never want a profitable trade to turn into a losing one...you really have to think about what you want, what you need and where you are going. All questions that require thought and work on your part. A trader can be happy making $200/day....another one wants to have $400k in 30 years. Be honest with yourself.
That said, I want to talk about my mistake. I did sell the shares...now that I remember. I got in with $50 and took profits at $350...it was ********. That was my tiniest account on Binance.us I bought back most of the shares, and overall I'm still ahead about 400-500 percent and I will HODL from here. My mistake was I rushed to get back in when I saw bouyance. Big mistake, it plummeted. I should have waited until maybe it bounced off the 20 period moving average off of the 200 moving average. Oscar Valdez (technique I think that's his name)...but that's my style, there a millions of different styles.
If I had been thinking with my rational mind, and not being fearful, I would have waited until it wen tto 200 MA and gotten back in. But nothing really ever goes as planned. So what are some ways to not get jerked around by the market or chase it. Simple.
Dollar Cost averaging. I got in **** at . 06 cents. That was my average price. I sold at like .37 cents...but I got emotional and FOMO (fear of missing out took hold...bad) and I jumped right back in. If I had waited until it went to .20, my average cost would have been lower. Yes, I'm still ahead....but at a higher bracket. Plus, if you sell within a year, you are hit with a higher tax rate (Don't quote me on that, check crypto tax rules)....I wanted to stake a claim for a year. That's the way to think of it, staking a claim.
Personally I believe one should Invest and forget about it unless it goes up by some astronomical amount....then of course you cash in. And forget about it. Don't return....move on.
So you buy at .30 . That's your average, it goes down to .10, you add to your position, your average price paid is .20....see, that way you aren't losing your shit when it become voliti;le. Think of it as bargain bin shopping. When it bounces off the 200 or the 20 ema, I plan to add a little. A little here a little there...in name infrastructure plays. It's not all that serious, Just five shares here and there.... add to your positions like it's a piggy bank....don't look at it...move on, take a little profit when you want....it will be there tomorrow. As always, train and consult an investment professional before risking your money. This is for entertainment and/or educational purposes only. I hope this helps. Oh, join Robinhood through my site. They have a $1mil promo going on so join and refer your friends.
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