Cryptocurrency can help you become a financial libertarian, it can give you a lot of money after just one pump. But everything always has a trade-off, investing in cryptocurrency is also very risky and you can easily get caught up in the profit spiral that affects money and health.
When you are swept up in this vortex, day and night you only think of the up and down charts, the blue and red colors, it will haunt you in dreams and this will exhaust you very quickly.
When a person is mentally unstable, the performance will definitely not be good, and in trading you will no longer have the intelligence to make the right decision, so it is very easy to lose.
According to Coindesk, here are some things that you can also see as principles in trading to help protect capital and most importantly, keep your health.
The great "bear" of Wall Street, Jesse Livermore, one of the most famous and successful traders of the early 20th century, once said:
"Stop trading every day"
When the market does not show a clear trend, the best advice for traders is to not trade, turn off the machine to rest.
You do not know where to stop, namely, after finishing an order that can win or lose, you will continue to find other coins to invest or surf, this is a taboo, rest or relax enough to mind. Calm down, then command, pay attention to your emotions and spirit.
Do not spend all day looking at the chart, traders should give themselves a reasonable time to rest.
Try to actively participate in outdoor activities such as jogging, gym, go to coffee with friends or go to the movies with your bear (if you have one).
2) Calm your emotions and practice taking notes
In trading, discipline is the most important thing. Every trader should reinforce his discipline and minimize his feelings.
Limit or best of all, don't include emotions in your trading decisions.
In this market, volatility is a 'specialty', so to minimize your risk, you should regularly take note of the issues involved, from risk to opportunity and set limits on your losses. that you can "gong".
There are three major trading issues in trading: arrogance, fear, and greed.
In which greed has a great impact on psychology and affects decisions in trading. So traders need to learn how to control greed in themselves, practice to remain neutral.
4) Learn to accept
The first thing in trading coin is that you must learn to accept, get used to the feeling of failure. Accept when a loss occurs and take it as a lesson or an opportunity to learn.
Many times the trade losses also help you recognize many shortcomings in yourself, losses can teach you something about trading, it gives you experience.
When a loss occurs, the first thing is not to think about it too much, although knowing it is difficult, but try to be optimistic, make a new plan.
When the trade loses, do not let it affect your future decisions, do not let it make you angry, because once you lose your temper, it is easy to make the wrong decision and in trading this is. absolutely must be avoided.
Sit down and assess the situation, ask yourself, why is that? Find a way to fix the previous mistake and remember to avoid following the old car track that caused you to lose.
5) Think of trading as a profession, respect it
You must consider trading as a profession like any other profession and take the time to learn, learn and seriously invest its values in order to expect good results for yourself.
Of course, in trading the only goal is to make a profit, but don't put too much financial pressure on yourself. Do not set too high targets like legendary trades, because the financial power is too large, making you easily worry about swallowing and that will lead to mistakes.
Also, remember "don't borrow money to invest, investment must be idle money" and "don't put all your eggs in one basket, instead allocate your portfolio properly."
Thank you for reading!
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