It was another red day for cryptocurrency prices today. I do not see this as a problem because the general direction of the prices have been up. We have reasons to believe that the market bottom has been reached and taking a look at charts do show a steady rise of prices over the last few months. There is no need to be a technical analysis expert or even use TradingView. The simplest chart on total cryptocurrency marketcap available on CoinMarketCap paints a clear picture.
Recently I Have Been Trading More
I have very little cryptocurrency in liquid form. If I had to guess on top of my head, it wouldn't even make up 1% of my portfolio. I locked 100% of my $POLYCUB into vexPOLYCUB and it won't be available for another 236 days. @splinterlands assets makes up the biggest part of my portfolio and those NFT assets are not a very liquid for trading. All of these things makes me feel very safe to boldly trade.
The experience gained and refining my trading skills itself is a good reward. That does not mean that I am okay with loosing money. I had almost retied from day trading during the bear market. I trade spot on decentralized exchanges. I don't have any liquidations to worry about. The general direction of the market is to the upside. I trade cryptocurrencies that I have filtered through fundamental analysis. Making a profit is a matter of "when" rather that "if".
Fundamental Analysis is My Stop-Loss
Not using stop-loss could be a very dangerous move. It is possible for a stop-loss to work against you and exit the trade right before a price reversal. That could be a 10% loss or eve a 20% loss. How far can a meme coin or badly designed tokenomics like Terra (LUNA) can take you? It could be 99%. Using stop-loss is in a sense similar to having an insurance or having a fire extinguisher.
Utility Forces Demand
Think of a hypothetical scenario where markets are crashing. That would usually mean:
- $HIVE price crashing
- People keep talking more about cryptocurrency
InLeo is one of the best places to talk about cryptocurrency and the articles + Threads will bring in more users. We can have more ad impressions while $HIVE is crashing. More ads shown leads to more revenue. That revenue goes into buying $LEO on the market. 100% of @leoads revenue is sent to go towards authors + those who are staking LEO. I wrote about this in detail. I'm only one of many talking about this:
Losses As A Time to But The Dip
We may make our decisions in moments, but the life is lived in years and decades. Movements in a 5 minute or 1 minute chart is often insignificant when zooming out to see years worth data. Even a drop of 50% should not faze an investor who is a market where assets 10X all the time.
HIVE Gained 3,805% in The Previous Cycle
Let us let go of the dreams of selling perfectly at the top and add some pessimism to the mix. Some centralized project with an ERC-20 or equivalent could suck in all the hype and regulation itself could get tougher. Investors may overlook all the amazing innovations we have come up with. Even after all of that there is a chance to see 2,000% gains with $HIVE IMO. What if I loose another 30% from current prices!
Learn Some Basic Technical Analysis
Do not think of Technical Analysis as some crystal ball. Think of it as a dashboard that distill many fundamentals at play combined with indicators on supply and demand. It is not going to save you; but it will help you.
Even a short video like this can be a tremendous help to avoid losses and spot good trades. If you are willing to watch longer content, the following will help you even if you are complete beginner:
Knowledge is not even the most difficult thing to achieve. It is discipline and mindset that makes the biggest difference. I have only 6 years of experience and most of it was trading as a side hustle. There are many users on HIVE that are far more experienced than I am. I see a great amount of discipline and a good perspective on the market in them. I have seen many beginners who started bother before and after me who ended up with big losses despite doing far better than me over certain periods of time.
Learning about successful traders is a good way to learn about the right type of discipline and mindset to have. There is no single path towards success. What we know about those who did succeed is that they walked at least one path that lead to success. We can learn from them!
Happy Hiving! Happy Trading!
Posted Using InLeo Alpha
