TRADING FOR BEGINNERS SERIES - #2 Battling human psychology

in #steem7 years ago

This is my second post in my trading for beginners series. In this article I am going to discuss the main fundamental of trading in cryptocurrency. BUY LOW, SELL HIGH. This sounds so simple and it is - but for some reasons the way humans are built, we somehow manage to do the opposite on a surprising regular basis. This article will help to explain why.

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This concept is fundamental to understand because all the charts and analysis in the world won't work until this becomes your foundation mindset. So why is that the majority of people can't implement this simple strategy? Simple, they wait to follow the herd and by the time the herd are buying a coin or token, it's usually too late.

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The above graph shows the psychology a trader will probably feel when applied to a moving price. It outlines how human emotions are impacted by how a price is behaving. They key fundamental to trading is managing one's emotions in order to be able to buy low and sell high.

In article three I will dig deeper into this graph and how to use this in your trading toolkit to better handle your emotions and make more profitable trading executions.

If you enjoyed this post then please upvote and follow me :)

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What a coincidence i see your Post. Just wanted to start digging a lil into trading. Follow and like, ofc. Do you have any specific sites where to trade with cryptocoins ? Sry if you allready named some before in the first post, as said i just saw this right now :)

The main two I use are poloniex and bittrex. Both good exchanges to trade on.

up voted and re steemed...

awesome thanks :)

Nice article! So which stage of the market cycle do you think we are in bitcoin?

The above cycle repeats itself over and over. I anticipate bitcoin to now follow an overall upwards trend line with these cycles superimposed over it. It's been rising pretty much since £1200 so i would think a good buy opportunity will present itself soon.

great post..I am not a native english speaker and you explain everything very simpe!!can't wait for your third post about trading. following and resteem!!

Thanks. I'm trying to keep it simple - glad it's useful :)

Great post!! Upvoted and followed! :)

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