Diamond hands in cryptocurrency trading

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Image made using canva

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Introduction

Hello everyone and welcome to another day on my blog, it's been a really Rolla coaster the last couple of months with the crypto market being a full blown bear market.

It's been really hard for many individuals to remain optimistic but that the reason for my post today which is titled diamond hands in cryptocurrency trading.

Diamond hands in cryptocurrency trading

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Diamond hands in cryptocurrency is unique testament to an individual's firm resolution towards their crypto beliefs.

What this entails is a situation whereby an individual is so sure of his position in a trade that he is willing to risk it all, at this point Market sentiments such as fear and greed index does little to affect such an individual.

Looking at the very nature of the crypto market it's very easy for most individuals to lose all hope in the market when the market is bearish and start to sell asset.

The cryptocurrency market has dipped several times and with this dip came about the notion of diamond hands in trading, this is a situation whereby traders rather than closing Thier buying position when the market is a downward trend, they keep opening more buying position with the outlook that this is only a momentary dip.

Diamond hands have played out in several occasions such as the 2009, 2011 and 2014 cryptocurrency crash which saw many individuals stand firm on Thier believes, firms such as micro strategy during times like this decided to average down on Thier btc positions rather than cutting loses, what eventually happen was that this firms during the next bullish run made millions of dollars due to their firm belive.

When trading crypto it is imperative that we stand firm in what ever decision we choose if it is a sell positions we stand by it or a buying position we stand by it.

Thai present dip in cryptocurrency has by no small means affected the price of steem today and we have seen so many Individuals sell assets for fear of the unknown, but those who would play diamond hands during times like this are always those who enjoy from it in the long run.

We all know having a strong conviction about the future directions of cryptocurrency price is good but in reality it isn't easy for many of us to stay committed to this course when we see our portfolio shrink as days go by many if not all lose at least 10% of our portfolio each day as the dip keeps getting dipper.

We can clearly see the impact of dip in steem eco system, a platform which at some point had over 10,000 active users now ahve just barely over 1000 active posters and we can see this through the on going engagement contest, in the first we week we had typically 400 entries but presently we only have about 80 entries.

Values that helps in diamond hands.

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To fully engage in Diamond hands they are some key attributes one most posses in order to perpetuate it efficiently such as staying strong and knowing when to exist although they are some who would not wish to exist as they wouldn't be able to bear the lose.

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Conviction

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Without a doubt one of the most essential attributes Al this who play diamond hands in cryptocurrency trading posses is Thier sting conviction towards Thier belives this conviction may be directed toward Thier strong believe in cryptocurrency or simple Thier basic understanding of market pyschology.

But what is important is that all those who practice diamond hands always certainly ahve a string conviction

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Technical analysis

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Behind every strong beliver of diamond hands they would always be a string technical analysis in which such a person holds to which gives them faith that there is still hope for any project they are supporting.

Now thue Technical levels are often very far out from those of retail traders, by having such far technical level it offers stringer conviction in their principles.

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Information

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The ability to block out unwanted information such as those which would cause fear and greed also plays a huge role in the ability to pay diamond hands.

May would like to play diamond hands but are often moved by market sentiment and what they had on the news.

What diamond hands in today's steem market

In trading cryptocurrencies today diamond hands would essentially entail we stay committed to the current course of action, such as keeping steeming despite in hopes that one day the price of steem would go back to previous highs.

Though the rewards are at an all-time low with sbd being gone and steem prices being significantly lower than they were a year ago, we must believe in the principles behind steemit and not to abandon steem right now but keep in steeming for a better tomorrow.

Just like those who held Bitcoin during the last bear market we would also be rewarded for steeming during this difficult time.

Price anylsis of Tron

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_{gotten from trading view}

From this chart they are 4 points of critical analysis we should consider before we can arrive at a strong conviction of wether or not to play diamond hands by holding Tron.

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1

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At point 1 we can we can see that the price start to fall Thai represents the start of the downward trend and during this point many traders would have likely sold Thier assets for loss.

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2

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At point 2 we can see that the price of Tron found some semblance of support early on in January 2022 after this point the price began rally up making consistent higher highs and lower lows indicating that the market was changing from a downtrend to an uptrend.

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3

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At point 3 we saw a sharp rejection as the price got ready to break previous higher highs, this then led to the price testing the earlier s support it found earlier on this year.

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4

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This posses to be the deciding move as to whether we should either exist our Tron position or add on to them.

This is because at point 4 the prife got rejected at the support created earlier, on its at up it also got rejected by the resistance above now the price of Tron ranges in between a break above would indicate we buy more trx while a break below would indicate to many as an exist sign.

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Conclusion

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Though playing diamond hands offers gives many a high probability trade set up it is also adviseavle to know when to exist any position is it not everything time the prices recovers just take a look at Luna and you would better understand this.