Digital swap

Hy there.

It's wonderful to have you around for today's class. I hope your December is shaping up. Let's get into today's class already.

BEING GREEDY

According to Richard Snow, "Greed is a natural human emotion that affect individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders".

Greed can very easily turn good trades into bad ones and bad trades into worst trades.

If you want to be a successful trader, greed is probably the biggest obstacle you will have to overcome. If you try to get rich on every trade, you will more than likely end up blowing your account – slow and steady wins the race. It’s the great challenge that all traders face – if you want to get RICH QUICKLY, you have to do it SLOWLY . Remember the good old saying--"slow and steady wins the race". Like I have said previously in the other lessons, take your time to create a trading strategy and plan and stick to it.

Greed is an emotion that plays an important role in trading/investing. New traders and their accounts have suffered because of greed. In fact, this is how the saying goes and it couldn't be truer - “Bulls and Bears make money; “Pigs get slaughtered”. The markets show no mercy to greedy traders and that is very true. You will burn out fast and easy if you don't put greed in check.

Greed can be seen as the opposite of discipline. Individuals that are disciplined seldom fall into the greed trap as they have some sort of plan and stick to it.

Things to consider if you want to OVERCOME GREED
• Have a trading plan
• Use the risk management strategy in every trade
• Desist from practicing over trading.

The above tips are a great way to keep traders on the right path and prevent them from being tempted to enter trades that deviate from their trading plan.

"Trading pump and dump" will be out topic for the next discussion. I'm looking forward to it and I hope you are too.

I believe you've learnt something new today. Kindly, let me know what you learnt in the comment section.

Don't forget to like and share so your friends can benefit from this as well.
Thank you!

Always a good time to learn together. I hope you're having a great day.
Today, we'll be talking about lack of trading strategy.

LACK OF TRADING STRATEGY

A trading strategy is a fixed plan that is designed to achieve a profitable return. The main reasons for undergoing a properly researched trading strategy are for its verifiability, quantifiability, consistency, and objectivity.

Trading strategy is a pattern that everyone who wants to succeed in trading should stick to, because without a trading strategy, the possibility of making profit is very slim, some times what works for Mr A may likely not work for Mr B so you have to master what works for you and stick to it so you don't drift to sentimental marketing.

Below are the 5 strategies you should not ignore

1. Diversify:
Don't dive into trading any assets with all your portfolio, make sure you have a certain percentage of your portfolio you're ready to risk no matter how you much you certain you are that the market will go in your direction.

2. Do your own research(DYOR):
Always set out time for research, pick some assets and study them closely, read their white paper, check their road map, find out if investing in it for long time will bring good returns on investment (ROI) study their price movement in the past, this is a combination of both technical analysis (TA) and fundamental analysis(FA) and it is very vital to your trading success.

3. Cut Losses With Limit Orders
Use limit orders most times. A limit order guarantees the price but not the ex*****on. Limit orders help you trade with more precision, it gives you the ability to set your price (not unrealistic but executable) for buying as well as selling.

4. Take profit/exit:
Make sure you have your entry and exit methods clearly defined and written down, lest you give greed a chance to overwhelm you and then you end up losing.

5. Don't be too emotional :
There are times when the market will test your nerves. As a trader, you need to learn to keep greed, hope, and fear at bay. Decisions should be governed by logic and not emotion. Try as much as possible not to be sentimental in your trading.

"Not knowing when to enter or exit a trade", will be out topic for the next discussion. I'm looking forward to it and I hope you are too.

I believe you've learnt something new today. Kindly, let me know what you learnt in the comment section.

Don't forget to like and share so your friends can benefit from this as well.
Thank you!

Hy.

Thank you for joining me today. We are going to talk about something very interesting today, as always.

Let's dig in already.

TRADING OF S**TCOINS

Sh*tcoins is what cryptocurrency traders refer to as coin/tokens that has no real life use. This means some crypto assets that are just there on the cryptocurrency exchange for trading without being used for any other thing.

Coins known as sh*tcoins can frustrate your trading plans, if you actually bought them for a long term investment.

How can I spot Sh*tcoins?
This is where Fundamental Analysis(F.A) comes into play.

Fundamental analysis is a method of evaluating the main worth of an asset and analysing the factors that can possibly influence its price in the future.

This form of analysis is based on external events and influences, as well as financial statements and industry trends, with this, we can easily tell if some assets are worth investing in, although most project owners do come up with promising white papers and road maps that will cause investors to believe it's going to be a wise decision if they invest into any crypto asset but end up losing their hard earned money, because the project owners where just there to cash out without embarking on whatever they promised to deliver in the long run.

Not all asset tagged as Sh*tcoins were actually meant be to be useless in the long run, most project do fail, because of financial issues and other factors beyond the control of the founding members, that's why it is always advisable to invest the money you can afford to lose, not an amount you are hoping to feed on or pay your house rent in the near future😂, because it can get so frustrating if the market goes south.

On my next post, our discussion will be on "Absence of a trading strategy"

I believe you've learnt something new today. Kindly, let me know what you learnt in the comment section.

Don't forget to like and share so your friends can benefit from this as well.

Thank you for reading