In the crypto world, many new traders worry about the decline after initial buying. When the prices start to rebound, they immediately sell. They rush to buy when the prices fall suddenly. This type of behavior is based on internal feelings of fear and greed. In the crypto trading world, there is no perfect quantitative trading model; therefore, many new traders make very little profit in a wave of rising trends and suffer huge losses in a falling market. Because why? They do not understand the essence of the crypto market clearly.
Why are you trading when you don’t understand the current market trend?
In the crypto trading world, there are a number of the best traders checking their muscles. The best traders are always those types of people who wait patiently for big opportunities. Sometimes they can catch, and sometimes they fail. However, the excellent always made some money before going to sleep.
Sometimes traders made 350% on a single coin and sometimes faced losses. Because they misjudge the market direction. If you are also facing losses, then immediately stop for a week and do not do anything. After the week, start again and learn everything from the last stage where you leave the market.
Sometimes traders give up a lucrative position, but they’re certainly waiting for the bigger opportunity and holding coins tightly. Many times, a bigger opportunity may cover many short-term opportunities. If you have reached that stage, you are considering giving up the short term and targeting the long term. It means that you are now becoming the most experienced and talented crypto trader.
If you look, Buffet’s philosophy of high-probability events is similar to following the trend line. Many people mix the concepts of trend and crowd in trading. A large community loves a coin not equivalent to profitable trading. The crypto trading world always pays attention to the minority of traders who pay great attention, and they respect trends. A crowd has nothing to do with trading, but they are useful for coin economics.
In crypto trading, the ups and downs and big waves wash out the most common traders and filter out a few traders who are keen and talented; they have tenacity, self-confidence, and decisiveness. These are the quantities of excellent traders. The crypto market requires maturity from traders because this will develop the perfect operating mechanism.
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