RE: Common cryptocurrency trading fallacies and psychological traps

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Common cryptocurrency trading fallacies and psychological traps

in cryptocurrency •  7 years ago 

i disagree having mixed strategies of hodling and shorting is the best. Most people that hodl too long get left with bags of sand. Most people who profiting have a dual strategy, where they neither hodl or jump coins for too long. It's a game of musical chairs.

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When I say hodl I mean with major currencies that have some realistic backing, i.e the least speculative currencies in the market that we can find like Bitcoin and Ethereum. Holders of these coins have always won big in the long run so you should be comparing your trading activity with those.

For example, if all you trade is Bitcoin, you should compare the profit you've made trading Bitcoin to the profit you would have made if you'd simply bought Bitcoin when you started trading with all of your trading money and held it. Often I think you'll find (as statistics suggest), that you'd have made more money that way.

I think the key point here is that I'm not talking about people that jump between coins every now and again but people that day trade and believe that they are profiting.