Hello, I'm @toufiq777
Hope everyone is well I am also fine by the grace of God.
To trade in the crypto market one needs to be smart to make decisions as the trend goes. One cannot get emotionally down when the market turns red. Because it is the red day when you need to buy in to gain maximum profits. If you chase pumps you will lose. In this article I would like to address the basics of trading while remaining mentally focused, also how to overcome those panic moments, how to be focused, and how to learn through mistakes in these volatile market conditions. Let's get started.
First of all, let me discuss how one can identify emotional attachment in trading: In the crypto market, there is no value for emotion. Though it plays a vital role in taking decisions. If a coin suddenly starts to go down one should definitely panic and sell it considering that he might loose everything. Or he might think it can go much lower. Because if we make 100$ profit it does not bring you much joy but if you lose 100$ you are going to feel terrible. So we can say that fear is our biggest enemy in crypto trading. Another point is we can be greedy to chase pumps. In the back of mind, we may think the coin might go much higher as it is pumping now. But it's not the case. If a coin goes up it can also go down in a short period. So, taking profits in between is necessary. No one can say confidently that they always win. They might win but there is the situation where they also fail. Often we see on Twitter that people are making huge profits. We see this because people love sharing their success stories, not their failure. So don’t just blindly think that people are making a profit in that way you also should succeed in every trade.
How can we put a barrier to our emotional attachment in trading ?
Earlier I said that people like to chase green candles. Who does not like green candle? But this is called the fear of missing out. We think that if we don’t buy it now we will miss the train. To avoid this we need to have our own plans in which we shall remain strict. We need to do our research on how the price action has been behaving for the past few days. Judging the overall market conditions we need to make our decisions. Also if we buy even we should have a plan how much profit is ok for me. And how much I can afford to lose. If we place a stop limit then it can be helpful to avoid big losses. We cannot be overconfident. We should decide according to the market trend. And to understand the market we need to do our research where we will analyze the current market trend and identify which sector is booming on that day. Also, we need to make our decisions how much profit is my expectation for that particular day. If we make our goals we should not overtrade. So we need to set our goals before we start to trade. At the end of the trade we need to evaluate how our trade has gone and what the mistakes we could have not made. This the overview. This overview over trading may help in taking better decisions in coming trades.
A smart trader always analyzes their gains and losses. I can share one example of mine. I got in on $Fet in February 2023 at a mid-range price. Once I entered I saw that the price is steadily going up. So I kept on holding my assets. At a certain level of 0.5$ the price remained steady for a while so I thought why should not I buy more at this price. It has the potential to reach 1$. Guess what happened I went for a holiday and after I came back I saw that the price has dropped significantly. My gains became loss for me. From this what I learnt that taking profits on the way up is very necessary. And I should have placed stop limit orders considering my profits. Also I should not have been overconfident.
Crypto market is volatile. It can pump 200% in a day also can turn negative 200% in a day. I am talking about the pump and dump coins. You must avoid these to cut your losses. For this you need to control your emotions. You cannot be stubborn. You cannot be stressed at the same time. If you feel stressed and fear on the red day please touch grasses on that day. You should make an entry and exit plan. In the bull market every coins goes up this is the most wrong perceptions. You cant just buy and hold them for forever. Adjust your portfolio accordingly. Don’t be greedy. Remain content with your desired gain. Self-contentment is the most crucial.
https://x.com/TechnicalToufiq/status/1870519027925500173?t=vGATETuoHlE_GqUcGJaHGw&s=19
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