RE: Top 5 Utility Cryptos To Buy On The Dips
When it comes to cryptos, I have this sort of monkey on my back that has prevented me from making good profits. I tend to compare with the past, and would go "But it was only $xx previously. This is too expensive!" More often than not, that coin would then proceed to add at least 50% more, and me kicking myself yet again.
It was the same with Ethereum recently. Despite know its great utility, that monkey on my back would whisper to my mind about ETH "being just $200 a few months ago".
But this time I became bothered by my wife's remark when I whined about "how expensive ETH is at $800". She said "It may be high at 800. But then it might go to 1,000 for all you know". I decided to give ETH another look, just so my wife would know that I do listen to what she says. Especially when it went down to $700 around the Christmas period.
Surprisingly (to me), from this "already too high price", it still went up further! I decided to go for quick gains by selling most towards $1.4k. And giving my wife a share of the profit. I can always buy again after this.
That's one of the human mind fallacy. As an investor the first thing you need to learn is to neglect previous history.
If you paid $200 for dish at restaurant and it tastes like crap dont eat it.
No matter how much an asset costed yesterday, the question is does it costs less than his utility now. I know, it's easy to say than to do, but abstracting from previous price bias is essential.
I could advice you to make a spreadsheet with 100 virtual bitcoins and try to trade it with such a strategy. While trading virtual assets it's much easier to abstract from emotions and do what your rationale tells you. Then compare pnl and adopt such strategies.
Nice comment. You really should post more @bronevik because I think you have a good insight into what it takes to be successful in trading.
I agree with @buggedout. That’s a very inciteful comment @bronevik
I'll think this out.
Thanks!
Missing a profit doesn't feel as bad as buying at the top and then watching it fall. So it is always better to err on the side of caution. I last traded ETH from about $200 to $400 and thought I was doing great....but I'm going to try and hold onto ETH for a while until I see the scalability issues resurface or I otherwise become convinced that it WONT overtake BTC.