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.
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!
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Today is the era of smart work and not hard work but not everyone can earn from smart work so some people are still doing hard work nowadays. The first thing you need to do to earn from smart work is to be smart and it's not for everyone.
It's all about supply and demand so I think the people just need to consider what they are planning to do. I don't know if I would recommend people to trade crypto if they don't know what they are doing. The desire to fold into FOMO/FUD is quite high
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yes, that's why learning this stuff is important in my opinion. !PIZZA
I believe nobody knows what he / she's doing in a way that nobody is able to predict the markets. A lot of strategies, graphs and matrixes, but nobody can tell for sure what is going to bring the (near) future. !LUV
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Yea but that is why going with something safer (according to the data) is the best option and leaving the riskier stuff to be a small portion of your portfolio is the best choice.
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I absolutely agree. I stopped with the high risk projects. I'm only loosing a lot of time and money on them... !LOL
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On what time frame do you normally inspect your charts with?
5min? 1hour? 4hours?
Just keen on knowing how you make your decisions in buying or selling🤔
!PIZZA
I usually use the daily chart. Just patiently waiting for good news. it's fine.
If I use shorter time frame I have to set lower profit margins, which is not ideal as I want to capture the super long green that happens to bag about 20%. And we know occasionally the pump happens.
Besides, I put in small sell order every now and then after buying new Hive, so it is easier to keep the 20% target.
!PIZZA
And if you'd use a larger time frame?... I'd go for a week or month...?... !PIZZA
Just that there isn’t enough data on the Hive market dex for meaningful week or month analysis.
Oh I see I misunderstood this one. No worries... !PIZZA
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If man could earn a lot of money by working hard, the laborer would be making the most money today. If a person wants to earn money and live a good life in this world, he has to work hard as well as brain. No one will be able to earn money until man starts working smart. The way we saw that bitcoin went down but now it's back to 28 thousand but all the other coins are staying down because the dominance of bitcoin is going to be very high.
I agree with you except for the last sentence. I'm not so sure that the dominance of bitcoin is going to be very high. It's good possible that peole start to go for a different coin like IOTA and/or start working on an other Blockchain - please let that be Hive ;-) !LOL
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I told him that's the last thing I need.
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If it were that simple... in Bull run to exclude the FOMO and in a Bear period convincing yourself that it can only go up again... !LOL But exactly there it went wrong already 3 times the last year! 3 times that everything dropped and didn't get back to the price where it came from....
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You re-tire it.
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... wait... I should say didn't get back to the price where it came from.... YET, right? !LOL
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He'll stop at nothing to avoid them.
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Just small amount and be patient could be the way. !PIZZA
Probably it is... I have been investing too much money at once in the beginning. I should have been a lot more patient indeed. This damn FOMO, right?! !LOL
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I wonder how the next chapter in my life will go.
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