How to survive a newcomer in the market of crypto currency?

These arguments inevitably receive support in social media, spreading with incredible speed. Beginners are inclined to believe such statements: due to lack of knowledge about financial markets, they become especially vulnerable. This leads to the development of pessimistic sentiments, which do not allow them to develop, because in their understanding it is useless to learn to analyze the market if its movements are completely determined by someone’s manipulations.

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As a result, pessimism begins to predominate, which only worsens the situation. As a rule, it looks like this: a trader covers a pessimistic mood; he begins to trade, giving in to emotions; losses, he justifies external factors, so he does not waste time on such an important constructive self-criticism that creates the basis for improving trading practices and risk management; money is melting, and anger is mounting.

When the situation on the market worsens, social networks are overwhelmed by angry and noisy people. They form groups in which they fuel each other’s moods in an attempt to protect their ego. If in their reality some external event is to blame for all the troubles, even if in practice their capital could be protected with the help of proper risk management, no one would think about it in order not to look “stupid”. In the end, this is normal.

I spent a lot of time with my true self, and believe me: this guy can not like anyone

Here are some useful tips that can help you survive these difficult periods in the market and not fall under the influence of people and stereotypes that I described above:

  • Books are always better than Twitter. Static knowledge is dispassionate and not subject to fears. I will list some of my favorite books: John J. Murphy “Technical Analysis of Financial Markets”
  • K. Huston “Charting the Stock Market: The Wyckoff Method”
  • Mark Douglas “Zonal Trading”
  • Nicole Elliot «Ichimoku Charts»
  • Steve Neeson “Japanese Candles: A Graphical Analysis of Financial Markets”
  • Howard Marx “About the most important. Nontrivial solutions for a thinking investor »
  • Sun-Tzu “The Art of War”
  • Mark Douglas “Disciplined Trader”
  • There is no need to trade every day or week. Forced and unreasonable trading is a direct way to losses. Approximately 80% of the profit you get on the bull market. In the rest of the time, it is necessary to focus on preserving capital.
  • Be humble and humble; this does not apply to the way of life (it is not necessary to honor the legacy of slavish morality). Be humble in the sense of your own opinion about yourself. Identify your weaknesses and develop your own strategy accordingly.
  • It is not necessary to always be aware of every minor price movement. There is nothing wrong with reading the charts. Just keep the flexibility to react quickly in case of any scenario. Many people fixate on this and track price movements in each candle of each timeframe. But sometimes the situation is just vague, that’s all. You do not need to risk capital in a weak position.
  • Do not invest more than you are ready to lose. This phrase was heard, probably, everything, but still many people continue to make this mistake. Positions should be opened and closed at the appropriate time, and not when you need money. The market does not adjust to your needs.
  • Trying to apply risk management methods after the prices of all assets have fallen dramatically is how late they are and come to the party to the very end. Risk management and diversification with respect to USDT or BTC should be dealt with when the market grows to hedge against future downturns. There is no endless bull rally (unless you are a central bank).
  • Until the time is right for the transaction, take the time to use: study the methods of technical and fundamental analysis, explore good projects, delve into the essence of mining, etc. Build relationships and share your ideas with friends. If you are surrounded by the right people, you can significantly succeed in self-development, testing your strategies and getting feedback from other traders.
  • Cultivate patience and strengthen your nerves. Emotions always lead to radical solutions. Do not share everything only in black and white. It is necessary to distinguish shades. Never rule out the possibility that your opinion may be wrong, even if you are completely sure of it.
  • Travel, meet new people, get acquainted with new cultures, try new products and enjoy new landscapes. All this experience will help you keep openness for new ideas and opportunities.

Summarizing:

  • Be skeptical of all the information you find in social networks and the media.
  • Be patient and trade only when appropriate, as the market will not adjust to your needs.
  • Analyze all possible scenarios and use a flexible approach.

If you accumulate bitcoins or other crypto-currencies, you do not need to wait for the perfect moment to buy. For example, if you want to buy bitcoins, start carefully buying small quantities even when the price goes down, constantly reviewing the probability of developing a scenario and severely limiting the size of each transaction, rather than buying everything at one particular price level. So you will not fall into the trap, and even if you have incorrectly defined the bottom, you will have a chance to go into the plus by averaging. As I said, you do not need to divide everything into black and white only, when in reality there is uncertainty in the market. Openness and rational approach will eventually increase the value of your portfolio. Do not become a victim of your ego.

Try to survive in the first place in this market – without this you will not be able to succeed in the long run.

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