Here's what you'll be using on on a daily basis while trading crypto.
1. Financial Capital.
What's great about crypto trading is that the low-barrier to entry makes it accessible to so many more people. Newbie traders can start with as little as they like and that's a good thing with the steep and long learning curve required to gain knowledge experience and start to see consistent profits month by month, year by year.
Many traders do fail however and risk losing the financial capital they started with so a clear strategy to defend profits and take profits is vital with a balanced risk management style.
How much capital did you start with or are thinking of starting with?
2. Mental Capital
It takes a great deal of thought, focus and concentration to trade successfully. Whatever daily mental capacity we have we'll certainly need to allocate a great deal of that while we're trading. On top of that there is the never ending learning curve and endeavour to improve our trading to gain greater profits.
What about you, do you get a headache while trading or is it a breeze for you?
3. Emotional Capital
We've heard it so many times that we must keep our emotions stable but that's the greater challenge to try to stay emotionless while trading. We're going to win trades, make a profit while wanting to celebrate. On the other hand we lose trades, lose money and feel down and sad.
In the middle of a trade we're going to feel certain emotions depending on our position and price movement and we have to manage those for our long term wellbeing and balance.
The 2 infamous emotions in crypto are FUD, (Fear, Uncertainly and Doubt), as well as it's opposite FOMO (Fear of Missing Out). We try not to buy into the FOMO unless it's backed up by sound technical Analysis and we try not to sell on FUD unless there's been a serious blow on the development side of the coin.
Which emotional states do you go through the most while trading?
Thank you for reading this post because I hope it is helpful for you should you want to start or improve your crypto trading.
If you think this is a helpful post for beginners to the crypto currency space, would you please upvote this because it will help me share more insights to success and profit with digital currencies.😋
All my hopes and dreams.