[0227] Avoid This Classic Mistake When Trading Crypto

I have a friend of mine who is new to crypto so I thought I'd write a post or two to bring him up to speed on crypto investing. So today I want to talk about a classic mistake when swing trading or trading trends.

Recently, when trading #CarVertical, I made the classic mistake of "selling too early". I had bought low and sold on a pump. Only to watch the coin go higher.

While this is annoying, it's actually not the major mistake I am referring to in this post. Which I will get to in a moment.

The Trade

From a profit perspective, buying $CV at .00000285 ETH and then selling at .00000500 ETH is a pretty good profit margin. Not as good as selling at the 700 mark, but it still is a 57% gain. Which is nothing to scoff at.

If you look at the graph, $CV is now below the 400 and slowly falling, as per my prediction. So, effectively I will be buying back in at a profit.

Selling Early

Sometimes with your trades, you will sell at the peak. And time it perfectly. Other times you will sell early as I did. Selling early is no big deal.

You have to remember that you are always trading to the right right of the graph and don't know what is coming next. Whether the market will rise suddenly or drop drastically or move sideways for weeks on end.

In the example above, I decided to sell my position because I wanted to (a) lock in profits and (b) as a downtrend had started and lasted for over a week, I chose to sell out with the view to buy back in later.

So what was the mistake?

Doubting Your Leadership

The mistake you can make is to think you've made a mistake when trading. You can bash yourself up for selling early and think that you're dumb as you watch the price rise on you.

Selling early and locking in a 57% gain is not a mistake.

The real mistake is when you get emotional because "you could have made more". I used to do this but now have a better handle on things.

I realized that if you go down that track of criticizing your trades ( which made 57% ), you are no longer in a profit-mentality. You're too busy looking hard at the coin you mistakenly bought/sold and as a result, are no longer looking sideways at where the next gain is to be made in the crypto market.

You're preoccupied with loss. Not preoccupied profit / opportunity. Which means, the longer you languish in regret, the more chance that you will miss out on other opportunities happening somewhere else in the market.

But even if you make a serious blunder, mentally "cut the trade off", learn from it and be done with it. Get on to evaluating the next opportunity. Or take a break until you cool down and ground yourself.

Back Your Decisions. Own Your Mistakes

The trick to trading is to stand behind your decisions, follow your gut and cut your mental-emotional relationship to trades once you've executed them.

Like a robot. Buy. Sell. Look for opportunities. That should be your programming. Keep it simple. Keep your mind clear. And look for the next good trade.

To be honest, I'm happy with my 57% gain. It's a solid win. It's bitcoin in my crypto bank. I also like the fact that I didn't sit around crying into my milk because I sold too early or "made a mistake". If I had done that, it would have made this trade expensive because quite frankly, I have other things to think about in my life.

Thanks for watching,

Brendan Rohan - Indie developer of 'next gen' natural medicine from Melbourne, Australia

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