I do not have much experience with cryptocurrency trading. I joined in the game during the summer of 2017 and enjoyed the awesome bullrun that autumn. I am not much into technical analysis of charts and more, but I do like learning about the different cryptocurrencies. And, after following this from near for almost three years, there are a few things that I have learned!
I believe these are important things that you should remember. Not because I am smart, but because these are principles that will save you a lot of regret and sleepless nights!
Make a plan and stick to it!
It tools me approximately two years to understand this and have faith in this principle. I don’t like it, but I have learned about the importance of it.
What do I mean? If you make an investment, make a plan for your investment already. Do you know why? Whenever the markets turn green and the prices go up, it is like an amazing drug. You get happy, you watch the prices all day, and it gives you a feeling that things will never end. And that is why you might end up, not only going up, but also down afterward.
So, whenever you buy something, get some sell orders ready at once. Set goals, and stick to them. When the drug starts to work in your body, you will have the feeling: “I shouldn’t sell now, because it might go even further up.”
Well, that is why you need to plan ahead and have those sell-orders ready! I always tell myself… if I start selling because of a price increase, then that is wonderful. It means that I am in plus already with my original investment, and as it keeps increasing, whatever I haven’t sold, will just grow in value. So, don’t sell everything, but sell continuously on the way upwards.
How does this work?
Last autumn, I made a small investment and it doubled within a few weeks. I wanted to keep on trading with this amount, but I also wanted to be smart. So, when the price of Ethereum went from 125 USD to 280 USD in the start of 2020, I sold parts of my investment all the way towards the top. I still had quite a bit left, but at least I knew I had sold a bit now and then.
And then, as the prices suddenly dumped, I had several buy orders on the way down, and I was able to buy according to plan.
In fact, I bought some Ethereum a few weeks ago as it was around 110 USD. Now, when Ethereum again reached 140 USD, I sold a bit. It didn’t feel good, because – maybe it was going to the moon. But, I did, and now I have a new buy order around 110 USD again. What’s up now? I am waiting for some movement.
But, it feels good! Do you know why?
- If it goes down… then I have buy orders waiting to go through.
- If it goes up… hurray, I have sell orders waiting to go through.
In this way, I can feel smart and like a winner, almost no matter which direction the market may go.
I know, this is not advice from a financial superhero, but some small stuff that I have learned in a hard way. But, it will make trading easier, funnier, and not so stressful. And believe me, it will give you less “if I only had…” experiences!
What do you think? Do you have principles similar to this one? I would love to hear from you!
