The Patient Investor - 11/20/2018
Over the last couple of days, we have seen a lot of turbulence in cryptocurrency markets. We’ve seen Bitcoin drop from $6615 USD to $4411 USD in just the month of November. Lots of people, driven by fear and other reasons, are moving out of markets in the hopes of preserving their wealth. There are lots of theories as to how we got here. Some say it has something to do with the ongoing $BCH hash war while others believe it’s a plot to tank the price to allow Institutional investors to enter the space before BAKKT comes online in January. Regardless as to what the reason is, now is the time to be patient, to think and to bottle your emotions. Emotions, fear, uncertainty, and doubt can cause one to make bad investment decisions. It will paralyze you when you need to move and force you to make a move when you should be patient. This article will discuss why you should leave emotion at the door and be more patient when trading cryptocurrencies.
“Prohibit the taking of omens and do away with superstitious doubts. Then, until death itself comes, no calamity need be feared.” — Sun Tzu
I read a really good book once. The authors' name was Napoleon Hill and the name of the book was Think and Grow Rich. In one of the first chapters of the book, it discusses how a man and his uncle went West to mine Gold. They dug for weeks and weeks and finally struck a gold vein. They covered up their claim and went back East to Maryland and asked their family and friends for funding to get mining equipment. They got their money together and sent the equipment out West where the two of them would extract the gold and make them all rich. This man and his uncle traveled back to the claim and began digging again. The first batch of ore was mined and sent to the smelter. It was clear that the man and his uncle were going to be rich. It was one of the richest mines in the region. Mining just a few more batches of ore would clear their debt and they would become unbelievably rich. They returned to their claim and commenced drilling again. But this time the vein disappeared. They drilled and drilled and drilled and they were still unable to locate the vein. They lost hope and made a decision that would forever change their lives. They decided to quit mining. They sold the equipment for a couple of hundred dollars and returned to Maryland. The man they sold the equipment to took ownership of the equipment and the claim. Instead of using emotion, he decided to learn and seek the advice of an Engineer to assist him. The Engineer informed him that the last owners of the claim weren’t knowledgeable in “fault lines” and that the gold would be found if he dug just 3 more feet. So, he dug 3 more feet. His willingness to learn about something new and the ability to use intelligence instead of emotion made him a multi-millionaire. He pulled millions of dollars out of the same mine that the previous owner and his uncle abandoned.
I brought up that story for a very good reason. How many times have you had a bag that you sold only to see that same bag, a month or so later, fucking moon out of control. The very first thing you say to yourself is “Damn, I should have hodled a little longer”. We have all been there. Seasoned traders have been there more than most. The difference between them and us is that they learned that patience is a virtue. When they exit positions it’s because their profit targets have been met, they don’t want to exceed acceptable losses THAT THEY HAVE PLANNED FOR” or their TA/FA permit them to move that money into different investments or cash. You defeat fear with intelligence. You beat emotion with a well thought out plan that you stick to.
Normally I write articles about coins, tokens or tech. But I decided that today I needed to do something different. We all exist in this ecosystem together. For better or for worse, we need to support each other. Whether you are team $BTC or team $XRP, we need to uplift each other if adoption will ever be a real thing to no-coiners. This is my way of supporting us. Be patient. Be emotionless in your trading. Be calm. Observe the market for what it is and order your trades accordingly. One love fam!
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