Even though trading is not a very easy job, there are some basic things someone should keep in mind while trading. The first thing is patience. When we plan for a successful trade, we have to first understand what we would be doing if the trade was not successful. We should have a backup plan clear in our minds. Invest a minimum value initially and try to go further with the profits we gain. Don't overtrade or trade beyond our limits of bearing the loss.
Sometimes trades can end up becoming long-term trade. This is something that we might have not expected. But that is where we have to be clever. If we invest in something and we also have a plan to hold that for the long term, it should be a big deal even if the price falls. There is a high chance that the price can recover and grow big if the project has potential. Patiently waiting a year or two can sometimes be very difficult for people. That is when we can do something.
If the price is dropping below the threshold and if we still believe in the project, we can buy a few more coins or tokens when the price is going down. It is understandable that we cannot keep buying without knowing the lowest point. Sometimes we might as well end up catching a falling knife. But we should be ready to invest whatever be the case if we are willing to take the risk. The price of Hive can be a good example. I invested a lot here during the initial days and I saw the price decline. I did not care much but later when the price dropped to 11 cents, I took it as an opportunity and purchased it. I'm glad that I was able to book some profits when the price hit 1$ or even more than that. There will always be opportunities but patience is the key.
Don't trade as if today is the last date
Sometimes when we see profit in front of our eyes, we usually slip away from our regularities and predictions and start becoming greedy. A little bit of desire towards earning from trading is good but it shouldn't turn into agreeing. We should know when to start and when to stop. If we keep following the same pattern expecting everything would go well, there is a high possibility for things to go wrong.
If we do a successful trade and if we see another opportunity, we should be ready to take the risk only to some extent. When we are able to make some profit with a 100$ investment, we should not invest 50k$ immediately after one successful trade. That is pure madness. People might even think that they found a pattern to earn from trading. Most of the time it is luck and sometimes it is also not favorable. We have to be ready for that consequence as well. Having a good amount of patience and thinking that there is always time later to trade is more important than trying all the tricks today itself.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
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