Topic: How to HODL the right way - page 4. (Read 569 times)

Everyone could have their own way of holding so I guess there won't be a real right way of holding. What matters here is that the way we chose will be comfortable and of course profitable for us. We don't have the same amount of assets so there will be people who can afford allotting money for investment and hold for profit, and the rest would rely on the received payments or accumulated earnings and then hold. Of course the bigger amount you hold the bigger profit you can gain as well as the bigger you can lose.

Your Bloc:-
Here are two simple rules my trading mentor who's been in the game for 30 years taught me.

1. Put 5-10% of your net worth in crypto. No more as you might lose more than you can afford, no less as you won't see much difference.

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2. Have a strategy. Every month, on a particular day you have chosen, take 50% of your profits in fiat. No ifs, no buts, no waiting for the market to get better or for the price to rise because you "know it will rise 100%". And when it comes to the other half, invest 50% of it in assets you believe in for the long-term (Bitcoin, ETH, Neo, etc.) and leave the other 50% for speculation (alts, shorting).


I myself have broken these rules on a few occasions as I got greedy and it didn't end well so I had to HODL, check my portfolio every 5 minutes, deal with a massive amount of stress...

If you leave the decision-making to the strategy you follow, not to your emotions, it will make the whole thing much less painful. These two rules are super simple to follow.

"But I made most my crypto money from crypto." "But I am sure there will be a bull run, I will make more money when I put all my savings." "Why only 10%?"

You can NEVER be sure if a price will go up or down. Even technical analysis can mislead you as the crypto market is not regulated, it's the wild wild west and anything can happen. ANYTHING. Good or bad.

We still live in a fiat-dominated world where you pay your bills in fiat (USD, EUR, YEN, etc.). So when your bills come but you've put all your money in crypto and it's going down and you kinda have to HODL, how are you going to pay them? I did that just recently and it was pretty tough to fight with my fear of losing and regret that I didn't sell at the peak.

If you don't need the money, great. Leave it in crypto. But the moment you lose a big amount (and this will happen at some point if you are in the game long enough) you will start panic selling and thinking about all the things you could have bought with that money: a trip, your yearly rent, a yacht, 5 years of freedom from work, etc.

A better way is to slowly regain your initial investment and let the profits make profits. Or take as much money as you need to live comfortably if crypto is your main source of income.

This is where the second advice comes in handy.

Take profit, even when it's counter-intuitive.

"This advice comes from many times of sh*#$ing my pants over the years," – experienced traders lose money too but they only come out stronger.

And finally, don't trade under the influence of your emotions:

FOMO – when it's going up and you've missed the train... but then you buy and it dumps. Happens many times to all of us  Grin If you've missed the train, don't run after it. Wait for the next one (next dip).

FEAR OF LOSING – you're panic selling and then it pumps back up.  Angry  Warren Buffet might be a crypto FUD-meister but he's right about getting greedy when others are fearful and getting fearful when others are greedy.

GREED – this is the trickiest of all emotions. Most humans are greedy. It's our nature. And yet most will tell you they're not greedy if you ask them. I am greedy, and so are you. In trading or investing, we realize we've been greedy only after losing money. There is no easy way to learn this lesson but if you follow the two rules above you won't let greed run the show.

I hope this is helpful.

Stay tough! ;-)
My Bloc:Teddings are a strange thing in the Kippo World, who have been working on it for a long time, they are the owner of the millions and those who do not yet have any idea about TEDD, I will tell them that before you technically Enilees, then you can not understand Konna Technik Enilees. I am very much convinced and those who use Technik Enilees, I will tell you for a long time. If Ted was very good and more than 3 months without pophita asabeapanara egulotei pauphata you will be 70-80%.

I don't think previous experience in trading have big impact on the success in the crypto because it is very different market having different dynamcis which probably have not been seen before, also putting 5-10% in crypto is absolutely nonsense if you know well what you are doing in crypto.

This is simply bankroll management if you'd ask me, though an efficient and effective one. This prevents one trader from chasing and cutting losses since the trader only has a small percentage of his bankroll on the line. Also, getting a definite day to collect profits--whether it's a win or a loss--is a pretty good idea since you will not be regretting anything if in case the prices go up or down since you'll do it regularly. It also prevents you from making impulse decisions that may affect your profits and result to a loss. Reinvesting your profits is also a good idea if you don't need the money yet as it further increases the potential return on your investments especially if the asset is performing good.

That is a good advice for the beginners that wants to become a trader, many people are really crying because they not follow the simple strategy and most of them are ignored it. But sometimes you need to face the risk to gain more and after that you may cash out the 50% of your profit for daily needs or whatever and you may trade again.

Whos been in the game for 30 years?what game lol.

This isnt a game and this doesn't exist for even 10 years so where did he find the word HODL when crypto wasn't there fromt that time.and if youre going to say that the learning is from stocks well this two different thing because cryptocurrency are volatile that you cant trust to perfectly grow without losing.

But i agreed on your views about how to profit in long term investment

Though, I may agreed with all your advices here, which I will follow for sure. But just to point out one of my conflicts in trading.

GREED.

This is one of my problem actually I am facing everytime I do trading. I always find myself regretting because of my greediness. At the end of the day, I will realized how much greedy I am that causes my failure in trading. A lesson learned to all of us is that, there will so much unexpected loss with so much greed.

it is a reasonble trading advice, I have to give you that Regarding withdrawing profits to fiat, that depends on how much you need to use that funds. If you don't I would have not necessarily done that

Probably the guy whom advised you has worked in stock market 30 years and want to use the information in here, well I don't think all that information work in this market , cryptocurrency is like a jungle , it doesn't have specified rules like stock market , it is 24/7 which stock market isn't , more than 90% of bitcoins are in less than 10% of wallets and it means market makers are much more stronger and so more effective than stock market , If in stock market market makers manipulate the market they can be sued , here is not  , If you have worked technical analysis you will see the old technical analysis which worked in stock market sometimes , rarely works in here , For all that reasons I don't think we can compare stock market and its tips with cryptocurrency world .

This is a good strategy OP. A plan like this would make you not be stress when there is a bear market because you are able to cash out and you are assured that you can still put food in the table and if one follows this religiously then he would not become greedy especially if he makes trading his source of income since he knows what his target will be. We know for a fact that we are still in a fiat-dominated world so taking profits from time to time would be the ideal way of trading.


These emotions are the reason why someone would lose a trade because he cannot control his emotions and after entering a position and losing, he would regret that he took that trade but then I think all of us have to go through to this so that we will know not to do it again in the future but instead learn from it because in trading, experience is still the best teacher to hone your skills and be profitable in the future.

The information is incisive and apt. There is nothing as good as having a daily trading plan which must be followed strictly. Form it as part of your attitude and always get a trading mentor.

I believe the right way is to make alot of research before buying any coin as a long term holding. after buying then forget about the coin and stick with your decision. people buy a coin for long term and end up buying selling them in short term 

I think only strategy that does not change over year is hodl but this strategy existed with bitcoin, today most people who hodl altcoins regret as they haven't sold at the right time.

That is a fantastic advice, but I still doubt about out 50% into Fiat, sometimes good opportunities comes without knocking and at that moment we need to seize it with everything we had,  playing with risk sometimes can give bigger reward, and I already separate my daily usage and for my trading, so I don't really need to cash it out, so I think cashing out to Fiat is not a good idea for me, but for the rest I am totally amazed by your experience

setting specifics when you are trading/investing is sometimes good but sometimes terrible. for example in this case things such as "Put 5-10% of your net worth in crypto" and "Every month take 50% of your profits in fiat" are specifics that I can not agree about.

you must invest what you can afford to lose and also based on your risk taking habits and how much profit you plan on making. so it can be 1% for someone, 5% for other and 90% for someone else. you can not say which one is right or which one is wrong as long as these percentages are well thought considering the risks and also the reward.

as for cashing out, the market doesn't move monthly. sometimes you can make a huge profit in one day and sometimes you may make tiny profit in a whole month. taking the profit out should be done when you reach your target regardless of when.
not to mention that many don't want to store their profit in fiat. they want to store it in bitcoin.

I think you should not hold at this point, you can see that java is constantly changing and it is hard to guess, the price of bitcoin is decreasing, the market is still in the cycle of long decline ahnj so You should only trade shorter days to minimize the risk and still be profitable. I believe the bitcoin price will reach $ 7000 in the coming days.

This is a very good tip for beginner's who are studying the basic fundamental to remember in trading. Well, if you are in need that much amount money because you have other expenses as well, then sometimes this tips can't be followed smoothly.

It's a good advice because it's hard in this industry it's full of risk and getting an advice from an pro or experience trader treat they're advice like it's gold because when it comes to crypto that's what you need.

Yes, we must try to overcome failure, no one is a complete victory without fail once. But let's look at that failure is the mother of success, draw ourselves to us valuable lessons to be successful in the future.

True... it's such a cat and mouse game... the indicators look good for a run up but you never know.  It's also important to set take profit targets... I know mine for Ethereum, for the next run up