Sirwin
Sirwin

Investment Rules in this Bull Market! Important for All!

By TheScholar | Day-Trading Cryptos | 10 Feb 2021


Hi guys,

I'm not a financial advisor. This is myself talking to myself, and letting you hear.

I have the following notes that I would like to share with "myself" wink wink:

1. I should never put all my eggs in one basket and I should never put each egg in its own separate basket

This means, I should do my due diligence, study and choose my investment coins wisely, and then have from 3-5 coins max. If I have more money, I can diversify more, but even then, I should not go beyond 7.

2. I should not sell or buy "Under Pressure"

If you missed a pump, or your coin went into a dump, just be patient, there is another train coming to the station. You can ride the next train. Selling under pressure is a guaranteed way of losing some of your gains. Ask yourself, when was the last time you sold under pressure then your coin jumped up again and recovered?

3. Always study your investments, never ever ever buy something you don't understand and you see the value of.

This is one of the most important things you should never forget. If you make the wrong investment, you can blame yourself and you "will learn" from your mistake. If you "randomly or hastily" choose your investments, you will never learn what went wrong, and how you can improve in the future.

4. Markets will shake weak hands and reward strong hands. Have a well defined entry, investment, and exit plans.

Never be a weak hand, always be patient and in control. Never let your emotions take the steering wheel. Have your entry plan ready, buy at your targeted entry point. Invest based on a plan, and exit based on a plan. Again, if you miss the train, wait for the next. This is a patience game as much as it is a learning game, so play it based on these rules: Patience, learning, and good planning.

5. Never invest more than you can lose.

You've heard this more than a billion times, but I am forced to remind myself of it all the time. I can say something though, which is like the opposite of this: I have very little faith in fiat currencies. Does that mean I should go all in crypto? Please don't. It is as dangerous to go into Crypto as it is to stay in Fiat. Just diversify, have some fiat, some crypto, some gold and silver, and even some grains or canned food (which you can eat before expiry and replenish). Diversify, Diversify, Diversify. 

6. Always have investment friends and partners.

This can be invaluable if you are a novice or an expert trader or investor. You can learn a lot from your friends' mistakes and successes, you can share ideas, you can even joke or party when you all win.

7. Try to learn from the best.

There are so many successful investors, and some of them accept students or followers. Join one of them and learn from him/her. This could teach you new tricks.

8. Never blame others for your investment mistakes.

I've seen this a lot. People blaming others when they lose money. Nobody put a gun at 0 distance and threatened to kill you if you didn't invest. Some sales reps. and some investment firms use psychological games on investors with scripts that make doomsday a breeze if you don't listen to their advice on a trade or investment opportunity. NEVER LISTEN TO MARKETERS! IT IS YOUR MONEY, AND YOU ARE THE ONLY ONE WHO CAN DO WHAT YOU WANT WITH IT.

 

I keep a copy of the above (shorthand) next to my laptop and monitor. I read it before doing any trade to make sure I didn't make a mistake. I try not to sell under pressure. I am learning all the time from my mistakes, and I hope I will succeed.

 

Good luck and please let me know if you have rules that I didn't list that can make me a better investor.

 

Thanks for reading and I do hope you are some of your rules.

How do you rate this article?

1


TheScholar
TheScholar

With passion for science and technology, I strive to help others to gain another perspective.


Day-Trading Cryptos
Day-Trading Cryptos

In this blog, I will try to show my journey in day-trading cryptos, starting with $1500, showing all the steps that I take, the methods I use, the losses I grieve, and the profits I make.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.