Disclaimer : just want to share some thoughts with all the traders or investors of crypto currency in market which is currently a very hot topic.
I am not against investing or trading in crypto currency. Which I am looking forward to the impact in the future financial world.
I find it is much easier to see the action of the big players compare to FOREX and is about the same as stock market with the limited amount of share issue. Which can be easily manipulated by big players. Which means, it gives us a clue to know what is their next move.
Always, all this hot investment instrument got very hot and many wants to share some cake in it and with tremendous profit that some traders made and how great the future of the certain coins are.
But often many are being blinded by the marketing that how easy to make money which attracted many people put their money in. I don’t blame them, because this is human nature, greed.
What I am trying to say is, don’t blame your luck if you are losing money. Because the day you jump into an investment is purely based on hope and forecast that shows the investment will be great. Basically, you are gambling! Trading is not about forecast & speculation, is about knowing what they are doing right now and act accordingly.
I still remember few months ago, every news and conversation topic around bars and cafe was buy some coins! you have to buy 1, many make millions from it. Well, some are sceptical, some are very positive about it.
Right now, the value drops and many are holding on a huge loss. Worst thing is, if you are holding right now, those group that are sceptical will start to say something really bad such as: ” told you already LA!”.
I won’t do that, because myself is a trader. I hear lots of this and all you can do is withstand the pressure and learn from the mistake. There are always some people around you will talk shit about your wrong decision just to crush you. Is alright, ignore them and focus on your goal.
And even some say, told you to buy the physical contract instead of going for trading on CFD. I am not against to trading without holding physical contract. For me, CFD is something that you can leverage or hedge your position, like buying an insurance. Which manage your risk. Stay open to whatever investment instrument available in the market. If you know how to play around with all these instruments, it will help you to make a fortune.
Live example, news of bitcoin price plummet is every in the internet. Some investors loss tons of money in it, if you don’t invest very often, fyi losing money is normal. Don’t put too much expectation in your trade, always prepare for a loss.
Make your losses worth the value, you need to learn from your mistake. I learn it in a hard way, I lose tons amount of money before, I hear worst comment before and those that talk behind me which I don’t hear and i don’t care. The important key to make profit in investment is to understand the big players intention.
I am not asking you to forecast or guess their intention. You need to look at their movement and you will know what are they trying to do. If they are doing marketing, show sign that is like a must buy, then you have to short/sell. Because the intention of marketing is to get people to buy! Just like Coca cola, Mc Donalds.
Once you know their intention, you can hedge on the position by selling in CFD. To protect your value of your investment. Just like what I did in the beginning of this week which I see they have no intention to push the price, so I short! You may look at the trading record at the image below.
Summary : investment is about looking at what is happening now and react to it, not looking at what is happening in the future. If you are looking at the future, basically you are hoping and gambling. Don’t Do That!
If you can’t understand this basic rule of investment, please save your hard earn money in the bank or pay some fees for someone to manage for you.