I do not know about crypto world for my entire life when it comes to trading. All I know is we can only trade in stocks and foreign exchange. Not until, I encounter noise.cash in which they are giving free bitcoin cash to their beloved users of the website.
There, I started researching if what is bitcoin cash all about and the other cryptos. And there, I've been educated if what are cryptos.
On my first few days in joining noise.cash, everytime I receive BCH, I am converting it right away to Philippine peso. But after knowing thag there are chances that the value of my will increase, I started hodling it. Crypto values are very volatile, you can double up your capital in just how many days or the value will reduce right away if you mistakenly bought the crypto on high price.
On the last month of February, I become interested about trading in cryptos. I watched a lot of tutorials on how to trade, techniques and tips. Learned about the indicators such as RSI, MACD, BOLLINGER BANDS, MA, EMA etc.
I chose Binance since it is the biggest crypto exchange in the world. On my first few days in crypto, I made a lot of mistakes, wherein, I am disaappointed right away if my capital decreased right after buying a crypto. Sounds greedy right? All I want is to have a profit right away. With this case, instead on the concept of "buying low and selling high", mine was vice versa, I am buying and selling it on a lower price. And started looking for other coins which I think that the value will increase. And with my urgeness to earn what I've lost in the previous coin, it did not happen.
It is really easy to understand the concept of "Buying low and selling high" but when you are now on the actual trading, it is really difficult to follow, because all I want is profit, I do not want to have losses. It is really difficult to handle emotions when it comes to trading.
Then, after having losses, I evaluated myself if where did I go wrong. And found out that I am putting a lot of emotions in trading and realized that when it comes to trading, patience is really a virtue. Profit will never be gained right away, we need to wait and know that "the seeds we planted today, their fruits will never grow right away", we need to wait. Same is true with trading, trading is 10% buying, 10% selling but it takes 80% of waiting. As what they say, if you do not HODL (hold on for dear life), you will not get rich.
I am lucky also that I have a friend who has been trading for years in crypto, stocks and forex. He gives me advices on what to do.
Here are some of his advice to me:
Told me that it is difficult really difficult when you can not control your emotions on trading. We should always set aside our emotions in trading because when we put a lot of emotions, instead of gaining, we will end up losing.
Before starting trading, we should always plan. Plan if where will be out entry points and if what amount will be our exit points. We must calculate if how much profit we want to earn in a particular trade. We need to have a goal if how much earnings we want before we close our trades. If we do not have plan, we will no longer do not know what to do if the coin/token we are trading eventually pumped or worst case is when it was being dump.
Before buying a crypto, we must need to search if it is really worth it to invest in it. Check if they have an upcoming events, what are their projects etc.
Everything we are doing have a risk applied to it. Technical analysis are just guides, it may happen but not all technical analysis may happen. We must always trade at our own risk. Never blame someone if their TA did not happen. It is only guide.
And a lot more, see you on part 2. I will post it tomorrow, if I am not busy.