There is something going around like Covid but worse.
Be careful when you hear “welcome to the Crypto-verse.”
In order to prepare you, my friend,
here are some lessons to help you, hopefully, a godsend.
As the saying goes… The trend is your friend; until it isn’t.
If you don’t pay attention, it’s crypto you’ll lament.
This crypto bug is viral and contagious.
Once bitten you’ll be smitten, it’s completely outrageous.
There is crazy volatility and exponentially more risk.
Watch out as the crypto market movements they are brisk.
You can trade assets that are 10 times more volatile.
Trading with 100X leverage makes winning highly improbable.
In crypto, the gains can be quick
That being said, the sell-offs are sick.
If the price movement is big, then so is the gain.
But let the buyer beware, sometimes the best move is just to refrain.
Volatility is when price action takes a violent swing.
This is different from risk, know this and you’ll be King.
Risk is the likelihood of an asset going to zero.
Be careful, there’s danger, so don’t be a hero.
When trading in markets there are two major types of emotion.
There is fear and there is greed, what a mixture, a potion.
There is a feeling of greed, with quite the misnomer.
It’s called FOMO, it is that feeling you might hit a homer.
The fear of missing out is greed, don’t confuse it with fear.
It’s that feeling you get when you hear your friend cheer.
“I just made money, I hit a 5 bagger.”
As they do a dance much like Mick Jagger.
Out of these two types of feelings, greed is one powerful emotion.
There is another just as powerful causing commotion.
When the trend moves to lower highs and lower lows, it reverses.
When your stomach hurts so bad you call up some nurses.
Fear is that feeling that causes price fixation.
When the price goes so low you sell, that’s capitulation.
It’s like a train wreck, you can’t help but look.
While that friend that never stopped talking, is quiet, they’re shook.
This is the part where things are uncertain.
You may ask yourself do I call it quits and close the curtain?
So you’re in uncharted waters. What do you do?
You pull up the charts online in Tradingview.
Type in the ticker for the asset that makes you feel blue.
The first thing is to step back and take a longer view.
Then look left to find structure in the price chart.
Maybe that you need to go back, all the way to the start.
You are looking for support and resistance.
Places where price action stalled, for instance.
Veteran traders use horizontal volume in order to see,
To find high volume at a given price level, however, it’s not free.
This works great unless you’re at an all-time high.
Then what do you do, when there is nothing but sky?
Enter a charting tool called the Fibonacci extension.
A way to predict price action from another dimension.
With an idea of price movement, you can plan your entries and exits.
But, remember to follow your plan, don’t be reckless.
If you feel unsure, it is most likely more information that’s needed.
Especially if you are new to the game and unseeded.
You need a plan, from the start, the beginning.
The best practice is to stick to it, if so you’ll be grinning.
If not and you still have doubt.
If you’re upset and all that’s left is to shout.
Do more research and see if your anxiety has subsided.
If not, change your position size, to ensure the plan has been abided.
If not, you’ll be shaking your head. Like what happened?
It is obvious to vet traders, a deviation is a reason you’re flattened.
So just remember, when you bounce back and you’re back in the game.
Just think about your past trades as no two trades are exactly the same.
As long as you have capital there’s always another trade, it’s true.
Once paper gains have been made, take profits like you planned to do.
You have a written plan, but can you stick to it too.
When greed is involved it can be much harder to do.
So that’s it now, that is all, we are through,
I wish you the best of the best in your trading and good luck to you.
PUSH Alliance is a facilitator led mastermind (peer-to-peer mentoring) group. PUSH provides structure, accountability, knowledge sharing, and tools to increase personal productivity and fulfillment. Find out more about the services we provide and our community by clicking the button below.
