I'm going to skip this catastrophic day. Nothing is working. Ether keeps going down. Neo is small down and my tokens from the ICO are flat/no activity.
So, I'm going to talk about a topic that I can't understand. Why the price of a token is rocketing when a company is announcing that they are going to burn them? (i.e. the company is going to cancel the burnt tokens). People are telling me because there's less tokens then the value of the remaining tokens are increasing.
So, my question what kind of tokens the company is burning?
Because if the company is burning tokens that were put aside and not in the free/tradable market then the market cap shouldn't move because these tokens are not taken into account in the calculation of the market cap.
If the company is buying the tokens from the market, then yes there's less tokens but the company has less cash in a 1:1 ratio. If it's the case, the only reason why the price is rallying is the token holders are forcing the company to pay them more. So, it means that part of the money raised during the ICO from the holders that are not selling the token during the burning period is transferred to the token sellers.
Anyway, I'm pissed about my day and I'm pissed about this meaningless 'burning' mechanism. I'm holding my positions and time will tell...
Feel free to post comments to get your opinion (and click on the upvote button to help the motivation ;) )
Disclaimer: I'm not your financial advisor and these are not financial advise+it's just a diary.
Hey cheer up... psychology is 75% of a good trader, with the right mindset and methodology, success is inevitable. It HAS to happen... i've been learning how to trade myself also, if you want, be welcome to take a look on my diary... I'm on day 16 and really, its not easy!
best of luck... following to cheer to your success!
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Psychology is important in trading but I would put 75% to analysis.
I'm currently in a situation where my trades are not profitable and the market is not behaving the way I was expecting.
So, either my initial analysis was wrong. Then, I need to change the direction of my positions. Or I think I'm right and I need to see these gaps as window of opportunity to reinvest at good levels.
Last case is I don't understand what's happening. Let's wait a clarification or write a blog to discuss and get the opinions :)
I will read your diary too
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