My new workplace in my office was in a different room with entirely new faces sitting next to me, due to corona I got seated away. A co-worker and I got into a casual talk; we did not know each other at all. Nothing was going on at work, so we had a lot of time to chat. We got to know each other throughout the day, and as it got darker outside, he started talking about his investments in cryptocurrencies. I exchanged stocks before, so I wanted to know more, and I was interested in discussing it. He spoke, and I listened. He was very confusing, and I honestly did not understand what he tried to tell me. But there was something about Bitcoin, something that really caught my interest.
The next thing I know is that I went home, opened my laptop, and went straight for YouTube and other sources of information. What I learned was more than just life-changing. It was a real eye-opener. The quantity of knowledge about economics I acquired has really impacted me and my political thinking. The vast amount of business ideas it sparked in me is incredible. I discovered an entirely new side of myself.
Fast forward a year, here we are, Bitcoin bull running, and I am trying to realize new visions and dreams of mine. Let me help you on your journey. Let me share some of the tips I learned during this journey.
Listen to yourself whatever market you are investing in
There are tons of analysts out there, and every single one of them knows it better somehow. Understanding that every approach to the markets is highly subjective is paramount and should be kept in mind accordingly. Trade only when you feel yourself. Doing what others tell you to do or what others believe is best for you rarely works out the way you want. This is very simple to explain: These people cannot think like you.
When I started trading cryptocurrencies, I fell for the analyst trap. I wanted to know every little detail about the market and what I forgot was my own subjectiveness. The noise completely blinded me because I need my own approach and not someone else’s.
However, there might come a time where finding a mentor or doing a course would not be a bad idea. But be sure to find the one that suits you and your approach the best.
Dig yourself into it. As soon as you feel comfortable with your approach to investing or trading, repeat it as often as possible, especially in the beginning. This is important since it can tell you how to improve in the long term. Investing is about staying in the market as long as possible. Therefore, you need consistency to be there in the long-term. Being lazy or blinded by the ideology that stocks and cryptos make you rich quickly is quite foolish. Turn up every day and get rewarded in the long term. This is how it works.
Stick to what you know
Short term noise can be a distraction, and many suffer from impulse decision making because of it. Buying and selling your assets because of speculative news or noise is rarely a good idea in the first minute.
I stuck to my guns. Even though XRP (cryptocurrency) dropped, I kept on holding it. It came back above my entry, and thanks to that, I sold it with a profit. I did not enter the trend and dumped it while everyone else was. I kept on doing what I planned, and it got out of it. Plan your trade and trade your plan is the best advice I can give here.
Do not over-invest in one project
Going all-in has nothing to do with trading or investing, especially when you are starting out. You are probably better of going to the casino with that cash. Diversification really can help you cover up mistakes in your trading history that you otherwise would have regretted. Being exposed to a certain amount of assets will increase your likeliness of finding one that moves better than the majority. Or if one goes south, you still have the gains of the other investments to make it look better.
Never invest more than you can afford to lose. A critical point, especially for the ones planning to turn up in the long-term. Over-leveraging yourself is never a good idea since you increase your risk dramatically. Instead, reduce your order value and split it into 3 or 5 separate entries to level out the natural market volatility and misjudgment.
Do not give up
Learning from your mistakes and not doing them again is crucial. Everything has a price, especially when you want a long-term return. The money you lose in the market is the price you must pay for the experience. By looking at it in this way, losing money will become more comfortable for you. Be critical with yourself, do not fall into the habit of making the same mistake repeatedly. Use a system that allows you to control yourself and even judge yourself.
I screenshot every trade that I make. Coming back a week later and reflecting on the trade really makes it worth it. What I learned from that is how to judge myself properly. A positive trade with a negative execution of that trade is not considered a fair trade anymore. Learning to think for yourself, no matter what the outcome has been before, is the clue.
Just because professionals do it, it does not mean you have to do it too
Do not try to be the Big Short. Listening to professionals will not help you develop your own understanding of the market. They will blind you. Stick to your rules and your perception. You are far more likely to do the right thing by sticking to your own guns. Wallstreet produces much noise. Best not to care about the noise at all.
Starting out with trading or investing is never easy. The more you do your homework about it, the better you will eventually get. Remember, it is all about staying in the market for as long as possible. The more you feel good about your approach, the better you will get in the long run. Right investors know what they add to their portfolio and have a strategy in place on how to deal with this investment. Do the same but add your subjectiveness to create a mix that suits you and your perception of things. This will surely propel you to becoming a more successful investor.
If you want to follow my journey or if you even want to join it, leave a like, and subscribe on my various channels, so you never miss any article again! Thanks for reading.
Originally published at http://yvestalksbitcoin.com on January 12, 2021.