Hey guys!
So many of you are brand new traders. When I was in your shoes, I was looking everywhere for advice. But every piece of advice that I got was different from one another.
SELL man! Its gonna crash!
HODL BRO! It will go back up!
How in the world do you make a decision, when everyone around you is screaming the opposite thing? Its tough. And it can really begin to play with your emotions, especially when you continuously make the wrong decision.
The funny thing is... our emotions can make us do the exact opposite of what you really should be doing, especially when you have too much invested for your trading level.
Say you are holding onto 100 Bitcoin... that is a lot of money. When you are holding onto this amount, you get antsy and worried about every little "tick" that happens on the charts. You keep thinking to yourself... "omg, it just went up 10 bucks I'm gonna hold and be rich!.." so... you end up holding.
Then 1 hour later, you see that it went down 20 bucks... and you begin to sweat and get worried that you will lose your investment... so... you sell.
Another hour goes by, you see the price shoot up 40 bucks! And you are like... son of a $##*@.... I could have made money on this.... So... what do you do? You buy back in higher than when you sold.
Now you are hyper focused... it starts to go down... "SHIT!!! What is wrong with me, I shouldn't have bought back in higher!"...
So what do you do? You sell... lol...
OK OK... yeah you get it now. So you can really see how your emotions can get in the way, especially when you are holding onto more than you should.
It is people like you who are losing in this Zero Sum game. Why? Well mostly because you are lacking discipline - meaning - you have made the mistake more than once, but you continue to do it anyways.
Well that really sucks, so what in the world do you do about it?
Take a step back for a second. Seriously. Are you looking at a chart right now? You probably are actually. Take a step back and look at the bigger picture.
Sure... when trading gets to a high volume state, narrowing down into a smaller timeframe is useful.
But... actually... from what I've learned... its better to hold to invest. Especially when you believe in the technology that backs whatever cryptocurrency or asset you are holding.
I will say though, one mistake I have made is that I have gotten WAY too attached to a coin... and didn't sell where most other professional investors would have sold. Actually, in some cases - I have lost money in longer term investments.
I became emotionally attached - and that isn't something that can always work out.
Yes, there are cases in the past where if you believed deeply & became emotionally attached, you may have become a millionaire... but in this crypto world. It's best to look at all the possible outcomes, and see what else is out there that may be competing.
Key take away's from this BLOG post is...
- Don't let your emotions get in the way
- Do not over invest, because this will drive your emotions into high gear
- Apply technical analysis, look at charts on a bigger time frame
- Become vested into a cryptocurrency or asset that you believe in, but don't become too emotionally attached
- Be true with yourself. Seriously. Ask yourself questions. Don't continuously think in the moment.
There is way more I can say here... typically, this is when I post a video. But I'm trying steemit out for kicks. Everyone on here seems pretty cool.
I want to a mentor to you guys, and help you as much as I can.
For me, to become financially free - is to have complete freedom.
I want to take you along this Journey
Thanks guys,
- BTCKYLE
I defiantly agree. As a total newb I found much more success in investing in newer solid projects than day trading. Ive watched and rewatched videos from you, chris dunn,Josh Olszewicz and a few others on day trading, investing and tech analysis and I think until you learn how to read the charts theres alot of chance involved as your going in blind. Ive also gotten to know a small but enthusiastic group of local traders and ive found that has also been great.
As you and chris dunn have stated, its all about learning and taking baby steps to minimize risk and maximize development.
Love it, and agree with you 100%
Thanks Kyle! You have been one of my favorites for a while. I enjoy your videos and now, steemit posts! Keep on educating us!
Thanks Zach! I'll keep at it
Great post Kyle, I have been watching some of your videos on youtube on how to analyse charts. Keep up the good content!
Thank you! I'm liking steemit so far. I'll post my video's here too.
I watch your videos, man, thanks for XSPEC (discovered through your blog when it was 10X cheaper)!
Great article Kyle!
yes Kyle your advice is sound. I have made alot of money buying bitcoin and holding it but in my life daytrading I have lost way more than I won. I just bought MYST and watched it drop in half OOOPS but I do believe in the idea of a free internet . On the other hand my blackcoin has more than doubled and my ether has gone up. My philosophy is no more than 20% of your capital in one investment and buy what you really believe in but if you are not buying longterm then have a stoploss put in as soon as you enter the trade and also know where you will take profits.
All excellent points sir! Nice to have found you on steemit 😁👍🚀
Good motivation