In this micro world of crypto, the phrase everyone has heard at least once is:
INVEST ONLY MONEY THAT YOU ARE WILLING TO LOSE.
It sounds like the warning you get when you enter a casino, not an investment world, and let me tell you, it's a hoax. Invest money that you are willing to grow, not lose.
Join me throughout this article, where I will share with you the keys to stop losing money. Based on what I have learned over the years and what those who know best have taught me.
And before we start, I know you want to know "how to be profitable", but to do that you have to stop losing money first. So let's get down to business!!
Common reasons why they lose money:
The most common reason is that they trade, buy and sell, based on emotions.
Whether it's $100 or $10,000, your money doesn't have to be used based on what you feel, but on what you know. You should separate the emotional aspect of your investments and treat them as such.
You may love a particular project, you may appreciate a currency, but do you want to make money just from the power of love and friendship? The market doesn't care how you feel, and if you put money where it makes you emotional, you're likely to lose it.
When we talk about emotions, we are referring to FOMO, that euphoria that makes you believe that something is going to go to the moon, that you can't miss out on buying. And the opposite is true, fear, when it falls a little and you feel that your money is going to zero, so you sell at a loss and then the price goes up.
They operate based on what others say:
If it's your money, why do you ask someone else how to spend it?
It is very common that when we are beginners we look for a guide, someone experienced to tell us how to proceed and many fall into the trap of following orders, instead of learning from them.
You have to listen to other opinions, see other analysis but with the purpose of learning from them: You need to contrast opinions, see if that person found something that you overlooked or, in the best case, someone has a good analysis system, then you learn to operate like him.
You want the X100 in a single trade:
I know, you have little money, everyone but you bought a token that multiplied 100 times and now they are rich, so you want the same.
Statistically, it's almost impossible. There are over 2 million projects (literally that many) and the probability of finding just one gem is very small.
Knowing this, stop looking for the impossible, focus on earning "a little" but continuously, only then will you be profitable. Because in the best case, your 100 dollars are now 10,000 because you bought "Paloma Inu", are you going to put your winnings back into a meme bet? That way you'll be back to 100.
You don't diversify:
Again, this is a difficult part, especially if you have little money, but you have to do it. Don't bet everything on one coin, even if it means splitting your capital into 3. Buy $BTC together with $SOL for example, which are big coins and only then bet on something like $DOGS
Otherwise you will be trapped in bets that can go very wrong.
You have your priorities wrong:
Before you think about making money, think about NOT LOSING IT. It's a no-brainer, and you're going to have to make it your personal mantra.
If you focus on taking care of your money, your attitude will change. You will stop making mistakes, you will want to learn and only then will you be able to earn money.
It burns your hands when you have liquidity:
This is very common, when you have money and you haven't bought anything you feel like you're missing out on something. As the market fell you want to go to futures and open short, as it rose you want to buy something urgently.
That happens because you don't have a system, you throw money away foolishly without any analysis.
It is better to keep your money sitting still than to lose money. You need to control your impulse, you have to stop and think.
You needed the money:
Let's go back to the beginning, what money are you using to buy cryptocurrencies?
The money you're going to allocate to this has to be a surplus. Once you've covered your expenses, paid off debts and have free money left, that's what you're going to use.
Never, but read carefully, never use money that you need. It is super tempting to think that you will multiply it and recover it, that everything will be fine, but when you start to LOSE it you get scared and operate without being careful.
The same applies if it is borrowed money or money from a third party, you will be full of fear and your head will be spinning thinking: How do I explain that I lost everything? How do I get it back? What do I do?
In short, if you need the money, if it's not yours or whatever, don't use it. It all has to be your risk, your responsibility and your management.
You look at the graph all day:
The world is moving fast, but not too fast. Stop checking in every 5 minutes to see what happened. You're only going to obsess and lose your mind.
The ideal is to check once a day, see what happened and move on. The market is not going anywhere, come back whenever you want, everything here continues on its course.
You run after the price:
Your worst mistake is wanting to get into something once it's over.
It doesn't matter if #PEPEđ goes up 20% in 1 hour, it's already gone up. You can't go buy because you feel like you've been left out or that there are no more opportunities.
When you're late, that's it. Focus on being within the movement when you trade, look for good buying zones, don't get scared when it falls and take advantage of buying.
You don't know how to take profits:
You want to make money but it's never enough, basically.
If you bought and your project went up 50%, don't wait for it to go up 1000%, collect a portion and leave the rest just in case.
When you wait for the price to go up, you're just waiting until the price falls.
You have to have realistic goals: 10% on this project, 15% on the next, and so on...
I hope you found this content useful. Thank you for your support and have a great day!
Crypto Citizen says goodbye.
