How GREED can change the flow of your TRADE...

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3 years ago

There are 2 ways of trading: Spot and Leverage/Futures Trading.

Spot trading is a trade wherein we are trying to follow the "buy low, sell high" concept. In this trade, we buy any kind of coin at low price and sell it on a higher price. We can say that this is the safest trade we can enter. Even if bought in a higher price, just wait for the higher price that exceeds the buying price before selling.

Leverage/Futures trading is the most risky and tricky since you need knowledge about technical analysis for you to gain profits. With this kind of trade, you really need discipline and risk management upon entering and closing a position.

I know many readers here already know these trades and this is just a review to apply how GREED change the flow of someone's trade.

Everyone wants a huge profit not just in trading but in every transaction we are making. Who don't want a huge profit? Maybe no one will answer "me" in this question. We can apply in our everyday life this greediness in ourselves but since we are in line of cryptocurrency, let's only talk about TRADING here.

Greed always hinders someone's profit. For example, you enter a spot trading and you buy a coin for a 0.01$ price and then that coin pumps its price it rises to 0.015$ wherein you already gained profits for that trade already and instead of selling and taking profit, you GREED beats you and you want a higher price so you wait and since cryptocurrency price is so volatile in just 10 minutes or less than 5 minutes, the price dumps to 0.005$ or much lower, then you already lost. You need to wait again for another selling opportunity.

And wait there's more, what if you enter a position in the leverage/futures trading? You can feel the effect of GREED in this type of trading especially when you still see green color in your position. You feel like, I want more, give me more which is wrong. Then just a mere second, the market reversed its current position and turn your position upside down and suddenly that green color turns bloody red. Like I said before, in this trade you need discipline and risk management and know when to close. You're lucky if you have huge amount of money to sustain that position and wait for it to bounce back. But, what if you don't? Then you lose.

Being greedy makes a huge effect and will always leave you the questions that start with "what if...?".

That's why in every trade, be happy when it turns profitable. Even if its only a small amount, "profit is a profit" just make another trade so that profit will not stay only as a profit rather turn it into an investment and gain another profit.

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Avatar for Itsuki
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