Over the weekend as part of my wife's real estate training, she had a trainer come over and go over what she should be working on and formula's for determining if a house was a good deal. He gave her formula's and values for determining if the property would be good for s rental, flip, or wholesale. After going over the formula's he made a comment that really stuck as someone who occasionally trades crypto. He said, "profit is made as soon as the investment is purchased and realized when the investment is sold.

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Buy Low

I can remember almost every trade I made in crypto where I didn't think it was a good idea. I would monitor the charts almost constantly with a sick feeling in the pit of my stomach wondering if this was a good trade. I was worried because as the trade played out I was worried my entry or buy price wasn't very good.

The confident trades I made were ones that I knew I had a great buy price and was just waiting and determining a good price for sale. I was just picking the point I wanted to realize my profits and that was a good feeling to have.

Managing the Risk

A follow-up point the trainer made was as soon as you make the purchase that's when you take on all the risk, so why take on that risk for a purchase that isn't good. It's easy to take the time to analyze the deal, set a price, and possibly miss the deal by setting too low of a price.

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However, if you compromise your plan and make a bad deal then you don't only have to manage the risk, but you have the added pressure of breaking even or worse losing money on the trade. He made it very clear that it may be temporarily disappointing loosing or walking away from what appears to be a good deal, but is much easier than dealing with that stress for weeks if not months.

Future of Trading

I haven't had the time to trade much recently, but plan on taking this into account for every future crypto trade I make. Not only analyzing the potential profit but doing my best at understanding how much downside risk there is.

Who cares if you miss the opportunity today because houses are being sold every day. FOMO is real when it comes to crypto and I always see the biggest gainers chart on Coinmarketcap or some other crypto exchange and think man if only I would have bought that before the pump, but now I realize who cares.

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Every day there is a new deal to be made and profit to be realized. I just need to analyze that charts and feel good about the price I'm paying for the crypto I'm buying. I'm not saying I'll never make a losing trade again all I'm saying is before making a trade I'm going to find trades with low downside and high upside and not worry if my price isn't hit as I'll find a new crypto tomorrow to set a buy price for.