In my distant past, I was working for a bank and I was a very active trader with options and shares. This was probably one of the worst time in my life. I was constantly stressed out.
Why? Because trading is totally contrary to how we human function.
In trading our emotions are our biggest enemy
Whatever strategy you follow, your instincts and your emotions will not be in favour of your actions. At the time we were taught to look at trading like gambling. We simply had to find an edge that would give us the necessary advantage to make gains. We tried to get this edge through chart analysis. However, this only worked if you could blend out your instincts and your emotions. It wasn't my best time and I remember my negative moods when the things didn't develop as I planned.
From this experience I've learned some important things:
- Trading is nothing for me, it makes me sick. That's the reason why I've stopped trading altogether.
- If you want to be successful with your investments, you need to blend out your instincts and your emotions.
All time highs is the best time to get crazy
With these all time highs on the markets, we are getting crazy just trying not to miss out on opportunities. If only we would have bought dogecoin earlier, if only we had some more btc... Now if you have these tokens that are going to the moon, how long should I keep them, should I sell or not ?
If you don't take care, you can ruin your health in such a situation...
When you look at charts, don't forget to look at the line...
If you look at the price development of a coin try once to pay attention to the line that is drawing the chart. One important thing about this line is that it always continues to be drawn. There will be a price at any time in history (if the coin doesn't default of course). This means you will always be able to buy and sell the coin. Today, tomorrow, in 10 days, in 2 years.
When you look at this line, you will also see that there is never one line that goes up without coming down from time to time. Prices fluctuate regularly which is totally normal simply because of human nature. When there is a steep price increase, some of us will want to take their earnings and sell. This will lead to a drop in price before others see this as an opportunity to invest and the price goes up again.
Looking at the line of a chart, shows you that there is no need to be stressed or scared. It's difficult to being patient in such situations but there will always be opportunities on the markets but you only have one body and one mind that should remain healthy. So be careful with them.
My way to invest without ruining my health
When I look at a token or a coin, I try to look at the fundamentals and by that I don't mean the chart or the price. I look at the supply, the progress of the supply, the use cases, the stake rate, the liquidity on the market, the general demand, the development, the burn rate. Looking at all this, I decide whether I believe that the price of this token will increase or not.
Don't get fooled by the price of a token. The markets are crazy. Look at the supply and at the demand.
If I believe a token looks promising, then I will start to accumulate it. Buying a little every day or every week, then staking and curating with it to slowly build my capital.
The best thing to do is to build a return in a token that might increase in price.
This way, I try to develop as many income streams as possible in tokens that look promising to me. But well that is my way of doing it. How about you?
How do you deal with this situation with all time highs on the markets?
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