Buying cryptocurrencies and selling them tend to have a high emotional tension. Firstly, trading is easy. Secondly, in a lot of different types of deals and orders, you can easily get confused.
It is necessary to keep your emotions under control, to reduce the risk and not to lose money. This guide will help you raising the effect emotions have on your decisions. Read the previous article here.
Here are 3 tips to keep your emotions according to Guru Trade.
4. Select a Suitable Trading Platform
Others allow you to sell / buy dollars and euros for cryptocurrencies, others only operate for digital assets. It’s very important that you understand what you need. Therefore, you need to consider three aspects, namely location, available cryptocurrencies and currency pairs, and security.
Location is an essential thing as working with a local exchange in your country helps solve all legal problems. In addition, you can use the bank to deposit and withdraw funds from your local currency account.
Available cryptocurrencies and currency pairs influence the investments. An exchange with a limited number of pairs is ideal for long term investments. In comparison, you can need a platform with enhanced trading capabilities for speculation and intraday trading.
Platform security is vitally essential. The tighter the restraints, the stronger. Make sure the platform is doing its utmost to secure funds from investors. Check up on the trade news and reviews. The other part of this issue is about help resources which you would have to answer if anything goes wrong.
5. Use Protection Orders
A stop order will help you protect yourself against losses in the event of a rapid fall in the price.
For instance, the trader bought $20 of the cryptocurrency in anticipation of rapid growth. He/she may put down a $19.95 stop-loss. If the price drops before it the platform closes the position automatically at $19.95. Otherwise, the coin goes up to $25, the stop-loss can be increased to $24.
6. Not Being Obsessed with Price Charts
Under the influence of FOMO, undue exposure to market volatility can trigger an emotional drop. And inevitably lead to panic sales or unjustified purchases. Charts are a powerful trading device too, but you shouldn’t look at them all the time. Therefore, it will prevent you from holding your emotions under check.
