I was once told by someone that investment is 10% Buy 10% Sell And 80% wait. This felt like the awareness I needed in my investment journey, but this was when I started trading Forex, I gave up on forex and focused on crypto and realised it is the same. Seeing this image today on Twitter just gave a pictorial representation of how it feels like investing in crypto. One moment you are buying a token because you believe the price is going to pump and you will make profit from it, the next minute you are coming online to look at your crypto chart only to see that the value of the token you just bought is going down, what do you do? Some people will panic and sell, because they can’t afford to see theirselves take losses, but some people will buy more. We parade this as buying the dip, but the dip, buy the dip because it’s cheaper. This makes us buy more and more of the token.
source
While waiting you come back online and see the price is cheaper again, what do you do? If you have the money and resources and you believe in the project, your instinct will be fixed on buying more of the token or coin. When you have accumulated enough and the token pumps, your reward comes when you sell it. When you sell the token it would be considered a good investment activity. You will feel fulfilled with your actions, you will feel happy and be glad you took the risks you took. At that time all the time and effort will be worth it because you have gotten your reward. You can easily tell the story with pride on how you invested, waited and got rewarded. Most times no one cares about the process they just want to see the result.
But in a situation where you did all these, you bought, waited, bought more dips and waited for more dips but the dip kept getting deeper, and you still waited and the project looks like it’s a failure and has no hope of ever pumping, you have the option of holding till zero or you sell and take your loss. Whatever decision you take, it doesn’t matter, you have taken the biggest step from your entry. If you decide to keep holding and it pumps back, that is great, but if you hold and it goes to zero, you will feel so sorry for yourself for not taking your loss. So at the end of the day, a good investment is always considered from the end result not the process. If the end result was positive and you make profit from it, then it was a good investment, but if the end result was negative and make a loss, then it was a bad investment.
Posted Using LeoFinance Alpha
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.