Be a Healthy Trader

in cryptocurrency •  8 months ago

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Contrary to popular belief, looking at Coinmarketcap doesn’t have an affect on the price of cryptocurrencies. Your prying eyes play absolutely no role in whether or not your investment goes up or goes down. However many people, including some friends I know, spend a ridiculous amount of time staring at it, willfully hoping that their investment makes a big move up. This activity as well as other counterproductive activities that surround cryptocurrencies, have led to an epidemic of sorts, which I like to refer to as the “homeless crypto trader syndrome”.

What I mean by “homeless crypto trader syndrome” is this. You take an average middle class person, throw them unabated into the world of crypto, and three months later they look like a homeless person who’s been living on the street long time. They have bags under their eyes, they’re breaking out all over their face, they don’t have good hygiene and their social skills have taken a huge hit. I think much of the world surrounding crypto trading is cumulatively equitable to taking a powerful drug. Many traders are addicted to the various applications surrounding cryptos, and unfortunately, this addiction can be very detrimental to an individual’s health. This is how I combat the negative aspects of crypto trading.

First off, I never risk more than I can afford to lose. This seems self explanatory, but you’d be surprised just how many individuals spend way beyond their means when investing in cryptos. Every crypto at this point in the game is a risky investment, and every individual who invests should be willing to lose that investment, without any serious detrimental effects to their life.

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Second, learn techniques on how to trade and invest. Again, pretty straight forward, but there are a lot of people who simply listen to other “professionals” about investing opportunities, as opposed to learning some skills and doing research themselves. You want to be held accountable for your own decisions one way or the other. It feels a lot better when you give yourself credit or yourself blame, than granting all this emotion to a stranger you never met. Plus you can learn from your successes and failures, and become a better investor/trader in the long run.

Third, learn how to passively trade. The best part about passive trading is you have a lot more time to pursue other activities. This to me is one of the most important aspects of becoming a healthy trader. Don’t get me wrong, some day traders are very good at what they do, but it’s a very stressful profession, and most who attempt to do it, fail miserably. Learn how to use the tools on the respective exchanges to do trading for you. Be careful with this though, because I’ve found out the hard way that cryptos with low liquidity or trade volume can do quick little flash crashes and bounce right back up to their original price in next to no time. This is when a big holder sells off a large position and because of the lack of liquidity, the price drops significantly, sometimes 20 percent or more. I would only recommend setting up stop losses on coins that have at least 5 million daily trade volume.

Fourth, do most of your trading or investing in cryptos you truly believe in long term. This is probably the single most important factor in becoming a healthy stress-free trader. You need to have a fundamental group of cryptos that you truly believe have long term implications to change the world. These are your go to investments when the markets turn sour, or when you’re indecisive on what to purchase next. Diversifying is definitely a good thing, but you don’t want to spread yourself too thin. You want a core group of cryptos, that you consistently accumulate over time, and feel comfortable investing more in at pretty much any price. This core group should represent the future you envision, and the future you’re fighting for.

Finally, get outside and enjoy life. Sure you might miss an investment opportunity or two, but there will always be another one down the line. Life is too short too short to waste staring at a computer screen. You might make all the money in the world, but if you had to spend 12 hours a day cooped up in your office, was it really worth it? Find a healthy balance, envision a future, and stay positive.

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Thanks for listening and tell me your thoughts.

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I agree. This advice will take me a long way. I was about to start trading...then the price dipped and people were freakin out. So I am still waiting..almost there.
Lol

Joy

I really appreciate your attention to the mental side of participating in this market, and you make some really good points. I am a full time trader for now and it is definitely taking its toll on my nerves, but I flew cropdusters for years, so my nerves are shot anyway. For me, it has been about achieving balance. My work is intense, but so is my play. I live in Colorado, so getting outside and unplugged is not hard to do, but it is frequently required. Have an amazing day and thanks for a great read! Followed.

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Yeah, I live in Seattle, so I like to get out and fly fish. It's definitely the escape my body needs after spending countless hours surrounded by technology. Thanks for the response! Followed back!

i love that one "Contrary to popular belief, looking at Coinmarketcap doesn’t have an affect on the price of cryptocurrencies. ", lol

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We've all been there lol

Hi Friend, nicely said. If I were investing as a day trader I would follow this but you hit the nail on the head; by, invest what you are willing to lose. I have none to lose at this time so not investing. However I enjoyed the read.

While I can't answer your question you posed in the comments. At this point I HODL with indifference. Took a shot with a cloud based mining company using winnings from a crypto poker site I accumulated through freerolls. And put 1/2 my eggs in one basket knowing full well it is not a sound trading move. But its a tech I believe is inevitable and I think this company has a decent team. Time will tell. I chose to invest some of that money to them in the hopes that over the course of 3-5 years they will a) still be around and b) worth something substantial. Kind of a crap shoot. Took the other 1/2 and put it into a cloud mining app that I hope continues to pay me through the next 3 years as contracted. If so and crypto goes up it should more than compensate for the crapshoot in teh one company I liked. They have poor numbers on coinmarketcap but again I am all a HODL for the long term.

If my situation changes over the next year hopefully I can put the time and effort into trading. And hopefully be successful, but its a stressful life style I suspect.

Good luck to you!

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Nice to hear from you! Yeah it's definitely very important to only invest what you can afford to lose! So many people this past fall gambled way too much of their money on cryptos and lost their asses. Every cent I invest, I already chalk up as lost money. When I calculate my savings, I don't count my crypto assets, they're just a bonus if they end up taking off in the future. I do some day trading occasionally, but I mostly just accumulate dips. Like I said, I truly believe in most of what I invest in long term, so I'm not really all that worried about all the short term noise. Thanks for responding and good luck out there!

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Oh man that is interesting I just assumed by being a crypto trader you meant riding the markets up and down swings. I apologize for misunderstanding. I spent a lot of time doing IT for traders years ago so my frame of reference usually starts there. Thanks for clarifying.

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Following. Good point.

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Appreciate the follow, followed back!

SALUDOS DESDE VENEZUELA BUEN POST

Que bunos consejos. Tengo amigos que estan en ese medio y realmente viven en el abandono pendiente de la computadora y nisiquiera conversan con sus hijos y de paso quiere vender propiedades para seguir invirtiendo en criptomonedas sin evaluar lo que implica perder lo que tanto le ha costado lograr. Realmente eso no me parece saludable.

Agree 👌👌

I agree with your method and i have to follow your technique .it is good idea .i hope it will bring success in my trade.

I would love to hear from others about how they maintain a healthy mind and body as a crypto trader/investor!

Be wise as always