I’ve come across a very important trade tip when I was browsing YouTube videos today and I want to share this with you guys.
This kind of embodies my whole experience with cryptocurrency and if I discovered this maybe a year or two ago I wouldn’t have made some of the mistakes I’ve done, so I’m going to share with you guys very quick and will explain to you guys why this video is really important to me.
This is a conversation between Omar crypt0 in his interview with the market sniper also known as Francis Hunt.
“I’ll finish with one or two other minor tips that is going to help you guys. No shorting No leverage. It takes discipline and more patience, some of this stuff is going up 20% in a day 50% a day but you don’t really need to know that, stay in the game, the way you don’t make the money is you get shaken out the game, stay in the game and you’re going to be a winner, we have an expanding market that’s the final tip”.
So this is the distilled knowledge from this experienced trader in cryptocurrency and he said the most important thing which is, ‘Stay in the game don’t short to yourself by shorting’ what he means is there’s just sell, and hope to buy at a later time for a cheaper price and I did exactly that when I first started cryptocurrency, you know I’m not afraid to admit my mistakes and that’s one of the biggest ones.
You know when I started in Bitcoin, I was all excited about it you know I was buying and the Bitcoin was stable at $500 and suddenly it rose up to $700 and I’m like damn I’m smart I would sell, I will buy it back at maybe $600 and I’m gonna make a fortune well guess what, it just kept going and going and going and you know in my heart I was just waiting for that one moment to just buy back and get back into the game but it just went up another hundred and up to a thousand and now it’s at 10,000 and it’s just so hard to fight that kind of initial instant you feel, like oh the market is going to drop tomorrow I really feel it, I feel hunch that this market is going to collapse – the bubble is coming I want to sell now.
But you know the market will punish you for overestimating, you know I nearly made the same mistake again last week, I was looking at Ethereum and it was growing and growing, I thought, it can’t go up any more it just can’t go up any more but it did, however I didn’t sell, just my luck, all the markets fell this week, but I know they will come back, just like every year at this time.
I said this market grows at 20 50 percent a day and if you really feel like this is something that you think you should keep then keep it, keep it because the market is just insane and the market is unforgiving,
Second thing is also very important, leveraged trading, this is something that the exchange is pushed to you if you go to Poloniax and you see can go for a margin and start borrowing money and trading, if you go to kraken as well you can use a 5-time leverage trade on the BTC – US dollar so this sounds very promising after first because you get five times your quote you can quadruple your money, or five times more money than you normally would, so if you’re trading and you’re winning you can not just double but times your winnings by five and that is actually a promise that appeals to someone who feels aggressive about currency but one thing you have to remember, is that the exchanges will always act in their best interest, they’re pushing this to you because they can make more money from you, and get more fees from you, the actual fact is that if the current season drops by any sort of freak accident, just one freak hour and the currency drops, by say half, if it drops more than half the exchange is going to liquidate all your assets, it’s going to liquidate all your money to try to cover up for that loss and it might just be a split second it might just be a split freak second and you can’t login at that freak second to just put more Bitcoin in and your assets are going to be gone, so that’s why you should never ever trade on a leveraged position with cryptocurrency, because you just don’t have the tools to do that.
In real life if you trade on the leverage position the exchange can even call you, say hey look you’re going to meet a margin call soon but you know on in cryptocurrency they don’t have your details, they don’t care about you, Polonia is overloaded as it is, they just care about getting more money for themselves and that’s why you never use a leveraged position, those are two very important points and I think it’s summarised very well on trading, of course this is not some trading advice I’m not the trading expert, if you guys want to watch market sniper you can check them out, I think he has some great advice if you want to watch Omar’s journey Kryptos journey in consensus just click the link below.
If you agree or disagree with this post, please just comment below I am always pleased to hear your views.