Ask Leo :Can logic and reasoning earns traders an upper hand in the market space?

What is logic and reasoning?

Logic and reasoning is the dexterity to navigate through puzzled up problematic issues and solving it basic on the strategy that is been procured.
The concept of logic and reasoning is very crucial in stages of planning as an individual,being logic means to be a critical thinker that can proffer a solution in a difficult situations.
The word logic & reasoning resonate because of the similarities between the two words,there are factors that differentiate these words,reasoning can be influenced by another determinant while logic can't be influenced prior to the kind of precision it has.
In the crypto currency dealings logic and reasoning can be use to trade,crypto currency is more logic than reason due to some lay down principles that controls the way investors trade on a daily basis.

PRINCIPLE IN CRYPTO TRADING

The logic and reasoning that applies to crypto currency trading are fundamental basic rule.

MANAGEMENT OF RISK

The principle of risk management has to do with traders trading skills or acquisition that enables them to minimize losses in any way possible.
Risk management is the act of playing smart whilst trading e.g buying when the market price rate is low and selling when the price is higher,the dexterity to be able to study the market flow and build a saving mechanism by acting accordingly to the market positioning is what this strategy is all about,this strategy has helped a lot of investors to save guide their investment from going down the drain.

TRADE WITH WHAT YOU CAN AFFORD TO LOSE

The concept of trading with what you can accord to lose is a good strategy,many investors tends to trade with all their lives saving,this can actually demoralize their way of living and their business auditing in a state of chaos.
There is a saying,(cut the coat according to your size) the moment investors risk more than what they can invest,there is a tendency that their standard of living can be ruin in jeopardy.

TRADING WITH EMOTIONS

Trading with emotion can be a dangerous thing to do,emotion some time can be deceitful at times but when the emotion is placed over logic and reasoning,the end point could be a catastrophe.
The market status can be very hard to forecast,this cause many traders who trade with emotion to panic and make the wrong decision.
The volatility in the market is unpredictable,trading with lack of logic and reasoning is not the best thing to do in my opinion.

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