Investor vs Trader - Who Am I?

in LeoFinance4 years ago

I am a rookie coming into this crypto space. I don’t know enough about cryptocurrencies as I do not have extensive background on blockchain technology and associated nitty gritty processes. Large part of my acquaintance with crypto is from my blogging engagement on Hive and Scorum which, if combined, is roughly two years.


Stock market investing

On the other hand, I am actively involved in the stock market. By active, I am not a day trader or any kind of trader for that matter. I am a couch potato type of portfolio investor who likes to keep his hand dirty in selecting stocks. The primary motivation has always been to actively involve in the passive income generation. 

Since I am involved in passive money making I know the importance of doing your own research when it comes to stocks and companies and understanding the true value of financial status of a company that I follow and invest on. While I was tempted to take profit from my investment in the time of greatest volatility but I did not do that.

With this background and context, I can definitely label myself as an investor and not a trader. But, that is changing from day 1 I invested into the crypto space and I will tell you why.


Why am I thinking about Trade?


The primary reason I cannot remain an investor with crypto is its volatility.  I am still not fully convinced on the future security of my investment with crypto (not BTC) and hench want to make quick money. On the other hand, I think - not sure though- even a noob trader like me can make some quick money if I decide to trade with my little investment. 

One advantage of being on Hive is you will get to know the trend. I am with likeminded people who always talk about trading and technical analysis. I am being influenced by these posts ( I should not be :P). Hence, when it comes to crypto I am plunging into buying and selling and making profits and incurring losses. 

What am I Doing?


First thing first, I am learning basic technical analysis. I am currently reading a book on Japanese candlestick analysis that provides basic information on how to understand the candlestick pattern. 

I am also watching hundreds of videos out there on YT and reading billions of blog posts. Now I know how tough it is to understand the patterns. Hopefully, I will be able to share the outcome of my trading hustle in the future.

And lastly, I am putting small amounts on binance to learn the way of trading. I am trying to understand the historical pattern and guess the future direction of the coins. I know I suck but still I am trying. 

Posted Using LeoFinance

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Trading crypto provides me a lot of satisfaction but I can tell you that you need to have "nerves of steel".
One advice, if you use binance futures, try to not leverage your trade so much even if you play with a tiny amount ;-)

Thanks for the advice. I am not a born trader to be honest. I am out of my fingernails each time i see ETH going down and Hive sliding towards that 0.2 mark. But, none of my decisions so far are based on solid technical analysis. I am just following trend relying on blog posts and other videos.

You are responsible, you always make those tempting charts on tradingview.😂

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hahahhahha!

Investor vs Trader - Who Am I?

Ah, the age old question.

My key piece of advice to you, is to decide what you are and stick with it.

NEVER let a bad trade turn into an "investment"!

Posted Using LeoFinance

Ha ha. And I thought i was the first individual having this question. I agree. I think I am not a trader as I don't have that agility and perspective to anticipate the trading move. I would rather invest and hold and keep a long term strategy. But, trading is sexy, fun and enticing. 😇

What do you mean by that? Are you saying do not hold on to something you did not initially intend to hold?

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What do you mean by that? Are you saying do not hold on to something you did not initially intend to hold?

"Don't let a bad trade turn into an investment" means that if you've taken a short term position and it's gone deep into the red, then you shouldn't just call it a long term investment to make yourself feel better.

Your number one priority should always be protecting your account and managing risk.

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Got you. That's what I thought but wanted to be clear.
Yeah, you are right. I agree.

I hope I didn't ruin the trading is sexy, fun and enticing vibe haha.

Posted Using LeoFinance

Actually, you did :(
Now I have to go back to my basics and think about how to approach crypto with an investment angle. Linking crypto with trading was easy as I don't have to think about the long term sustainability, economic development and future adoption of cryptocurrencies.
Short term profits and you are out - that's enticing :)

Posted Using LeoFinance

I always burn my fingers when playing for "quick money"!

:-) Good Luck!

Posted Using LeoFinance

The temptation is always there. I am always long term investment person but this seems to be too good an opportunity. Thanks for your advice :)

Posted Using LeoFinance

I've been day trading with some success over the past few months. Not a clue what I'm doing though! It all went bad a few weeks back and I managed to lose around 30% of my small investment, but have slowly been clawing that back. I look forward to reading your future posts on this ... I should really do some research myself.

That is the exact fear I have. Losing money on something that I don't fully understand. No technical analysis to back your trade is straight gambling/betting. Let's see if I keep on managing my zeal and enthusiasm.

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