Great chart - thank you.
I'm a trader of fiat currencies, commodities and options for a long time and although these fluctuations are difficult to handle emotionally, letting your emotions get in the way will be your demise.
Stay focused on the long-term even if you are attempting to "trade" on the shorter term.
Thanks for your insight, totally agree!
Easier said than done... we're in such a volatile moment and we're pretty high now, that is so easy to sell and buy impulsively and to lose real money. The easiest way is to always diversify your portfolio and to rebalance it once a month. An example of a good portfolio today is 20% Bitcoin 40% Litecoin 20% Ethereum, 5% Namecoin, 5% other cryptocurrencies. Of course, this is just one strategy, you're welcome to share any other.
Good thoughts for sure and diversification can be helpful. But with broad-market ups and downs, the pain can still be the same.
However, managing your emotions when trading and investing is among one of the most important elements people miss when starting out. Especially if they are lucky enough to have started in a secular bull market and caught the uptrend. They just think; "this is easy, I'm going to make a fortune."
It's important to "know yourself" and the type of trader you want to be. Day-trader, (being in and out of trades on the same day) Swing-trader (positions that last a few days or weeks) or a Position-trader (taking a position weeks or months at a time). Personally, I've done all in different markets, but choose to be a Position trader in Crypto.
Not knowing how you want to trade when you start will likely get you into trouble.
Volatility is a "traders" friend; however, in Crypto, the "rules" are not the same as in other market, in many ways. These are fledgling markets that really need time to evolve. The relative liquidity is small, thereby allowing for these monumental swings.
And as many are seeing, volatility is also the enemy.
Making emotional decisions, whether they be trading or personal will very often lead to disaster!
Be careful out there and know yourself and what your objectives are.
You need a strong stomach in these early days of Crypto!