The importance of taking profits on your terms in cryptocurrency + a few words on Bitconnect
Today's Vlog is about the importance of taking profits on your terms to guard against allowing your emotions to dictate your decisions on 'red days' like today.
Less than a month after the last big crash in Bitcoin, the markets are taking a hammering again today. My portfolio, like most people's is haemorrhaging in term of USD value.
In a nascent market like cryptocurrency it is natural to feel fear, uncertainty and doubt ('FUD') when the market is going down dramatically in price. Anyone that tells you for certain how this will all play out is either lying to you or lying to themselves or under-estimating disruption/ potential push-back cryptocurrencies will cause.
If you're a HODLer than what I'm about to say won't apply to you. However if you're someone, like me, who likes to hedge their bets and take profits occasionally then it's important (in my view) to do so strategically rather than emotionally. On days like today it is easy to make a decision (or not execute a strategy) based on emotion.
Cryptocurrency for me is about self-ownership and for me that extends to trading/ taking profits. I believe in doing it on my terms. I.e. setting out ahead of time, where I intend to take profit, where I intend to buy back in and ensuring that it is based on sound analysis or a sound strategy. So on days like today, the decision is less 'what am I going to do' but whether there is anything fundamentally different that should stop me from executing my plan.
I also saw today that Bitconnect appears to be ceasing it's operations. For me, this is just the nature of Multi-Level Marketing schemes. Pretty much all of them go belly up with a whole bunch of people who jumped on late losing out. I just hope that anyone who lost out was able to offset that with gains elsewhere or (if not) they only invested what they could afford to lose.
There is no sure thing in cryptocurrencies, no-one knows what the true valuation of this technology will be. However it's better to get involved in a protocol that you believe in. You're more likely to be steadfast during the downtimes and if cryptocurrencies are indeed over-valued at least you were involved in a technology that revolutionised people's lives.
Just my two cents worth.
It was sad being part of a scam , unfortunately it will be a learning experience for me and my family who invested
A few days ago I wrote a post about this subject as well: Profit Taking Is The Most Difficult Thing To Do In The World Of Crypto - Here’s A Method That Might Work For You Too.
I see profit taking as a way of building an opportunity treasure chest for when a great opportunity comes by and nobody has the means to take it, except you ;-)
See yesterday and today as an example!
Very good post! It's so true that taking profits can be difficult. The FOMO kicks in real bad. I try to stay aware by using technical analysis. Learn new things everyday and this correction has given me great insights. Try to share as much as I can. Hope my latest post can provide some powerful knowledge to you:
IMPORTANT Coin Updates (BTC, ADA, BTS, EMC2, ETC, GNT, SBD, STEEM, XVG)
https://steemit.com/bitcoin/@benkalashnikov/important-coin-updates-btc-ada-bts-emc2-etc-gnt-sbd-steem-xvg
I LOVE THIS POST.
This is why the BitClub Network was smart enough to set up shop in Iceland instead of the U.S. and ban U.S. customers from joining. I hate to hate to admit it but if the company you are investing in is U.S. based stay away when it comes to crypto. http://bitclub.network/dibble1
I really enjoy your videos. So many people let the market make the decision. I remember back in my youth I would make these type mistakes. Great advice.
These last few days have been brutal, but profit taking should have helped!
Thank you @nanzo-scoop. I think one has to differentiate between traders and investors. If you are in for the long term and not fully invested, you should be happy about the correction, as it allows you to buy more for cheaper. It will be positive for your long term performance. If you are a trader and if you are buying with borrowed money, you should feel the pain and it should teach you a lesson. I know that it is psychologically difficult, but people should at least try to follow this way.
... and by the way with regard to bitconnect: I think this is the way every ponzi scheme goes at some point. Interestingly, I see people sometimes who know this but still invest because they think they are still early enough before the scheme goes belly up - I would never do this personally as it is a risky game to bet on the aspect that other people might be more stupid then oneself.
@nanzo-scoop I want to thank you for commenting on what cryptos are doing right now and the END of Bitconnect........
Its really great to take some profits at your own terms.
I also took some profits at around the 16k mark.
Someone told me recently that crypto is not for the fainthearted hehehe and never acceppt your emotions override you!
So all guys crying now never invested what they can lose,always invest what you can afford to lose.This is what i have learned so far as a newbie from Uganda.
It definitely makes sense to have a strategic plan rather than invest on emotions.
As in the stock market general - EMOTION tends to kill your investment.
Especially in the case of crypto scene, where we have an extremely volatile market.
I therefore totally agree with your suggestions and would only add to just invest a part of your available budget for cases like this.
If you have - for example - only invested 20% of your playing money, then you would be pretty happy this days enabling you to buy at very low price.
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