Topic: Enter the market with a loss mindset~what you can afford to lose - page 6. (Read 1200 times)

If the purpose of buying bitcoin is for long term investment then I think buying at any price is fine "it looks not greedy". However, if we want to maximize profit potential, we must know when is the right time to make a purchase, and one of them is when it goes down. The problem is, people may be confident about the potential profit they will make from investing in bitcoin but they are not brave enough to make a decision to buy on a downturn due to concerns of continued downside. That's one mindset that may not be suitable for this investment because in fact they can still have other superior strategies such as DCA.

But we can also preassure everyone that they should buy and buy because whatever other people say shouldn't be financial advice to them. There has to be their own analysis to make a decision, but I believe that if they want to invest in bitcoin in the long term then they will get a decent return.

Some times it is our mistake that puts us into losses and the mistake is simply greed. We wait to get all the profit at same time while market has done its highest but we keep hodling it waiting for more bear but when it start to drop , panic begin to happen and regret. I think that setting our mind onto the profit point we want should be our top height.

Can't deny what the OP said true, but often traders always feel they can guess the bottom and high correctly and end up losing the moment and getting emotional so they make the wrong choice of when to enter and exit the market.

What is never prepared for is a loss so that traders will be frustrated when experience it even though both losses and profits can be experienced by all traders even though they are have experience and knowledge. So traders should prepared for everything.

that's what new traders do, who don't even have enough experience and skills to trade crypto.
what has always been on my mind, and the cornerstone of my investing and trading is to assume that what I put into the crypto market must have disappeared. That means I'm ready to lose.

Thinking of getting rich quickly by trading and investing in crypto is a bad idea. those who own it are not experienced in this market.

Proper trading skills means proper mindset to approach a bull and bear market, lack of which is the reason why traders who are entering crypto often end up in the vicious cycle of buying at the top and selling at the low.

While I always advocate a positive approach to trading, I would agree that knowing a loss will be incurred should be kept in mind when starting to trade. However with the rationality that a loss is a lesson for any trader and that one can recover a loss gradually, long term trading becomes a habit not a stint.

But most traders enter with a get-rich-quick mindset, which is a dangerous thing to have. When they dont get it, they sell and lose money.

Agree! People who are new to trading tend to see ATH's as buy opportunities and Dips as sell opportunities and oh boy was that the complete opposite. I felt so stupid when I realized how dumb the "trading" I've done ever since I started. Additionally trying to identify the bottom is like looking for a needle in a haystack, it's like a wild goose chase. It's also why I transferred to DCA'ing instead of trading, it's a load off of my mind so that I can stop thinking even when dumps like this happen.

It also helps how I honestly just expect to lose the money I invested.

The hardest part there is when you bought at semi top and the value of your token/coin are going down so big. Some investors mind set are to cut loss or just typically hold it. If you are confident enough, then youll definitely hold and wait for the price to go back or surpass your buying price. So what will you do when this happened?

If you are gonna hold, try to look for staking platform or their own and put it there, so while holding you also been given some tokens from that alone, making your negative value could decrease partially. At least your shares are being increase slowly.

I do agree with OP. Crypto is on sale at the moment and no one really knows the bottom. So it is wiser to score slowly but certainly. We are going through one of those 3 years cycle we have experienced back in early 2018. So when the next bull cycle kicks in, bitcoin may get a valuation of 100k quite easily. We all need to prepare now to get the profits out of it.

Naysayers will always be there to demotivate people. Some will say crypto is dead. But we need to ensure that none of these negative things affect our own thought process.

This has been the case for bitcoin for many years if you ask me. I mean not seeing "all" crypto like this, because there are some serious shitcoins out there, so do not generalize it for all of crypto of course. But when we are talking about bitcoin, I would never say that it went down too much to recover, there is no level where I can see it going down and lose hope, even if it is 100 bucks one day, I will buy as many as I can, will never consider it gone. Except of course if there is a technical problem, in that case I don't know what the reason is and would decide based on that if I want to go on or not. But not for financial reasons.

One of the biggest mistake traders make is to only think about profit and not a possible loss in case the market goes the opposite way. When you are prepared for a loss, you also get to have a good risk management plan so that you don't lose everything in a single day.

Another thing that affects trader's profits so much is greed and FOMO. People should know when to exit and enter markets to avoid losing every trade.

It is true that nobody knows the bottom or the top; this is why it is being preached that everyone (either a newbie or pro) should always take profits everytime in crypto currency. Thast way you don't have to worry about the bottom price or the top price

Because no one knows for sure, which price is the bottom and which is the top?
We can just buy at the price we expect to be the bottom and take profits at the price we expect to be the top.
No one wants to buy at the top and sell at the bottom, the act of buying and selling comes from your judgment and results in the best answer, not a right or wrong argument in the market.

Last December 4, 2021, Bitcoin had a bad drop from ATH to $42,000, down nearly 40%, and many Altcoins dropped 20-30%, for many investors, this is really like like a nightmare. but calmly looking back, this is not unusual for the crypto market.

From August 2021 to the end of 2021, everywhere you go you will see a lot of people predicting bitcoin will reach 100k - 200k, then most investors just buy more, not sell. But as a result, we have seen, that bitcoin keeps falling in price.

Cryptocurrencies are always like that, it feeds us every day, fattening us up and then eating us with subjectivity and confidence that we are smart enough to beat this market.
But no, capital management is ultimately still iron armor to help us survive in the market for a long time.

Bottom or top is valid only when we have a sell action.
It is the price at which we sell that determines whether the order is bottom or top.
Prices always fluctuate over time and never stand and no one can predict the top or bottom price 100% correctly,
So, when entering the market, prepare yourself not to give up.




-Duke Khan