I have the impression that many people just don’t like the mindset. “It’s a mindset” not only yells at Eric Bugenhagen, but also applies to both trading and long-term investment. First and foremost, one thing belongs to this mindset: control over one’s own feelings. If you have these under control, you will also be able to develop good money and risk management. Greed and fear stand in the way of many. You get angry: If you had sold everything in time and put everything back in crypto in time! You would be a millionaire!
The problem is that these perfect moments are usually only recognisable in the retrospective. Of course, trends, indicators and patterns, supports and resistances can give instructions for action, but often it is one’s own emotional state that keeps one from selling or buying. You wait for the dip to go even lower, then you will invest in Bitcoin. You wait until the end of the rally to sell at the maximum. If you then act, you are often dissatisfied – you would have sold or bought earlier!
It is even worse if you act impulsively – you notice that Bitcoin Cash rises dramatically, sells all your Bitcoin in favour of Bitcoin Cash – and the price falls. In both cases, in addition to possible losses, one thing is particularly striking:
The Bitcoin evolution ruins his day
Therefore it should be emphasized again that one should adjust one’s Bitcoin evolution, so that the feelings of fear and greed do not control Bitcoin evolution. The classic advice “Don’t invest more than you can cope with” is not just a tip for preventing a private insolvency, but rather a tip to avoid exactly these pitfalls. You should therefore think about what you could get over.
Part of the mindset is that it is not just the Bitcoin evolution
The rule may still be slightly different as a trader than in the case of a long-term investor, but if the price drops dramatically, you don’t sell nervously in either case: Bitcoin Evolution Review 2018 » Full Scam Check. You look at whether there is a fundamental reason for the price fall or whether it is the usual fluctuations. Otherwise, you sell if you want to exchange crypto currencies for Fiat or spend them on goods – in other words, if you want to treat yourself or (in the case of the trader) think that you have reached your Bitcoin evolution trading goal.
With regard to the mindset, one will also gradually notice that the perception of profit and loss changes: Price gains are of course a pleasant thing, but in the event of price losses you will not only see the dwindling portfolio, but also buying opportunities. This view should be cultivated, as it gives you a certain peace of mind in times of price falls.
So far some thoughts to the mindset. In further articles, the path of the investor and the trader will be examined in more detail.