Trading crypto in a boring fashion like the neighbourhood shop proprietor

While learning the tricks of the trade for trading, old habits die hard. I am talking about noobs habits of FOMO, selling too early, stress, anxiety etc.

Essentially, it's about keeping the excitement about the market and trading decisions in check, and not getting carried away.

To train the mind to keep new habits, adopting some kind of analogies may help.

In my mind, I am slowly adopting the mindset of a neighbourhood shop proprietor who arguably has the most boring business but growth is ensured so long as the operation is smooth.

Image Source

So what does the boss of the small business do?

Essentially, they buy what they intend to sell, and sell them only for a profit. Rinse and repeat. That's it.

To do that, first, the boss needs to have a stash of capital. In real-life businesses, they have to cater to rents, workers, utilities, etc. Nothing of that sort in crypto trading. But they need to have deep enough pockets when we talk about the operating capital.

Suppose one has the capital waiting to be deployed, then it is a matter of getting the goods at the lowest price possible. This lowest price is of course subjective as it depends on market conditions.

Once the goods are purchased, then they are put on sale at a profit. Again, the selling price is also dependent on market conditions.

In crypto trading, such as mine outlined here, we do the same with buying low and selling high. The difference is that we don't have to worry about footfalls in crypto trading, but we need to consider demand, which is also some kind of footfall arguably.

Suddenly when there is a low demand for the tokens, prices will drop. That is the time to pick up some tokens if one believes that their price will rise in the future.

Now, let's look at the current Hive price chart.

Generally red candles are for buying as it indicates that the demand has suddenly dropped. Of course, the lower it drops, the chances of seeing a profit in the future increase. Conversely, if one chooses to buy in the green candle, the chances of selling at a profit in the future is comparatively lower. Assuming all things being equal, and we are in a consolidateding market condition.

Under such circumstances, there is no need to be emotionally attached to the price action and the trade one makes.

Just go about the daily trading decisions like what the small business owner would.

That's it, make the trading decisions the most boring thing in your life like the run of the mill operations in a small business, and profits should roll in.

At least this is what I am trying to tell myself.

P/S: This is not financial advice, and please do your own due diligence before investing.

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @thatkidsblack, @graciousvic, @deflacion, @jacoalberts, @young-kedar, @svanbo, @sumotori, @zakludick, @poplar-22 and @hankanon!

What is Hive?

Posted Using LeoFinance ^Beta