Date: November 09, 2021First thing I did when I entered this world was to explore and it is visible that there are users who are blessed with their earnings to the point of saying "I want that too ''. I also wonder why some users achieve more than others. As I follow and read their articles, I discover that what they hold on their wallet is not just a read.cash and noise.cash platform only but they upgrade to the next level. From writer into trader. Trader into different cryptocurrencies carrying with their own knowledge and research.
We all know how risky the trade is, even it is single penny to loss it's already a huge thing into trader. Trader vision is to have a profit of what he/she trade to double or triple the capital. I am in the point to participate in the world of cryptocurrencies but I decided not to enter even for now because my knowledge is not enough.
Even though I am not yet a trader, I do have some advice for the beginner or planning to participate in the trading world. I believe it is also helpful to those users who already participate and enjoy the world of trading.
Don't put all the eggs into one basket
It is the golden rule of investing that warns every investor to don't put all the resources in one area because it might go in one single snap. It applies into crypto trading, do not just buy or hold one token in your wallet but instead hold more than one or two to avoid huge loss the moment of dump price of a single token. There may be losses in some areas but it can recover with others.
In simplest terms, it is all about diversification. Diversify the amount that you are not afraid to lose into different tokens. May accept or not even if we are not afraid to lose that amount but deep within are wary. To have more chances of earning or to avoid losing. Diversity is the key.
Advantages
More earnings or profits when pumping happens.
May loss in some token but not as huge because in some instances other token dump but others are pumped. It is a win-win situation.
It can reduce the risk.
Risk Appetite
Risk appetite is the tolerance of handling the risk. Also known as the amount that can afford to lose. In trading, you just not simply wait and visit it whenever you want but you need to monitor every single minute because any moment the fluctuation and the pricing might pump or dump. The more active you are the more chances of profit because when pumping starts traders could sell some of the token for the initial return of capital. Note, don't sell all the token for the purpose of selling some of it when the pumping fluctuation continues.
Participating in trading involves feelings and emotions. Why do I say so? It is because the moment you trade, the mind will overthink what could be the outcome of it, could I gain or lose? If you gain, the happiness can't be contained but if you lose, the sadness and downness are there. At some point, stress occurs, especially for the beginner trader. The importance of risk appetite plays a vital role in investment or trading to control more stress and negativity.
Closing Thought
Don't go into the battlefield without a background knowledge of fighting and defending. Trading is not a small world, especially crypto that is still unknown to some other people. Participating needs knowledge by doing DYOR (do your own research) to have some background check.
Note: I do write this based on my observation, opinion and perception. I am an expert on this matter.
Check them out it's worth to read❣️Special thanks @MJAYTECH and Kuya @TengoLoTodo for the sponsorship.
Lead image by Pexel.
JustMaryel sending you Love❣️
I agree with you, one who can master his emotions when trading will most likely win most of the time because he won't let his emotions cloud his judgement. Still battling with mine and still in nursery when it comes to trading