This is easier said than done but keep your emotions out of your investing. They will lead to nothing but trouble. They can cause you to buy at the top price and sell when things are low.
Obviously this will lead to you losing your money.
For example, if bitcoin all of a sudden jumps up by $3000 don’t rush to buy. Could this new bitcoin price be a low at some point.
Sure it could. It could also be a high and then it falls by $1000. Wouldn’t you of rather bought at the lower price? Of course.
Don’t just react to what you see. Think about it before you buy, take a step back. After thinking and not reacting you might decide that you still want to buy at that price.
You might decide to wait. But either way you used your head instead of just reacting. Most of the time this will be a smarter way to go.
I can give you a personal story of where I just reacted. At the time bitcoin had been around $4500. Yes I know thats low as bitcoin sits at $16,500 now.
But at the time it wasn’t. All of a sudden it started to make a jump in price. The $5000 dollar price had been a ceiling for awhile and it blew right past that.
It kept climbing and at $5500 I made a purchase for $100. At the time this was the biggest purchase I had made and all I could think was that it was going to keep going up and I wanted a good price.
I didn’t stop to think. It got to $5800 and came all the way back to $5100.
Now if I had taken a moment to think I would’ve waited for the run to stop instead of buying at a high. For a few days I kicked myself but it was a learning experience.
Overall this purchase has worked out in my favor but it won’t always be that way. Always better to just take a minute and think.
I love this pic…