**Disclaimer! I am NOT a financial advisor. Everything I say is my personal opinion and my personal experience. Everything I say must be taken with multiple grains of salt. This is NOT financial advice.
As you may know my brother and I have recently taken up Cryptocurrency trading. What is Cryptocurrency? You know, Ethereum? ...No? Hmmmm Dash? No!? Neo, Iota, OmiseGo? No, no and no!!? Hmmm...... I might have to scrap this bl... Wait, Bitcoin!? Have you heard of Bitcoin?? Of course you have, the whole world is talking about it! So in a nutshell Sterls and I are trading Bitcoin.
Now that we're on the same page, let me tell you a little bit about my experience so far in the world of speculative gambling, otherwise known as 'trading'. Straight off the bat I'll say this, its exciting! The first thing you realise is how easy it is to be swept up in the hype of it all and let your emotions take you for a ride. The second thing you learn is how unprofitable that particular approach is. Trading, above all else, is a mental game, it is about being able to make unbiased and calculated moves with a technical and steadfast strategy in place. If you let your emotions take charge you will lose. Period. It is the wild wild west out there mark my words. However! If you can bottle your emotions (usually a very unhealthy thing to do but in this case the profitable option) and remove them from the table whilst sticking to a solid strategy, then you my friend have the potential to be a good trader.
Cryptocurrency markets are young, which makes them volatile and volatile markets are an emotional roller coaster. One moment the market is green and heading to the moon (a commonly used expression in trading), everyone is jumping around throwing handfuls of cash in the air and the next there is blood on the streets (not literally), the charts are red, everybody is panicking and it feels like the floor has just opened up beneath you... Not fun.
So..........
Now that you're either scared shitless of the idea of chomping at the bit to make some fast money (depending on your personality type), should you get involved?
Short answer: No.
Long answer: If you're prepared to sit and learn and I mean really learn, for the next 6 months, watching charts and learning how to read them, watching market trends and analysing them, learning about human psychology and emotion and placing a whole lot of paper trades (pretend trades), then if you feel somewhat confident by all means have a crack, but always remember these 8 things:
- Remove emotion and look at things objectively
- 95% of traders lose money (or so I've been told)
- BUY LOW, SELL HIGH
- Technical analysis is speculation! No T/A, no matter how strong, is a sure thing
- NEVER invest more money than you're willing to lose
- Making trades is nothing more than making educated guesses
- Have a step-by-step strategy in place and follow it precisely
- Don't get greedy!
On that note, I'm getting greedy for breakfast, so I'm going to wrap this one up :)
I hope that you enjoyed my personal insight into and suggestions in regards to trading in the Cryptocurrency market and may Satoshi be with you! If you don't get that reference you should probably go and Google Bitcoin and do some reading, go on I'll wait...
Slips away as you leave the page to open Google
Have any questions about my personal experience trading? Feel free to hit me up, I'm always happy to share :)
Jeremy