JAKARTA – The year 2021 has been a wild ride for the cryptocurrency market as Bitcoin surprised its detractors by setting a new record high at US$64,863, and the DeFi and NFT sectors also making headlines around the world.
Crypto traders need to be vigilant at times like these as the notoriously volatile nature of the cryptocurrency market can see huge fortunes disappear within hours or days of changing trends.
According to Charlie Burton, veteran trader and co-founder of Ezeetrader, this is an important time for every trader to have a set of rules that they adhere to when emotions start to heat up because “we are all human beings who can make mistakes, are flawed. creatures, especially in front of the market.” They should not be emotional when entering the market.
“We are naturally influenced by greed or fear of one tendency or another. So we really need to have some simple rules, but I would also say that a lot of visualization is good,” said Burton, in an interview with cointelegraph.
These rules can include things like on what percentage of losses an investor takes to stop losses, the maximum percentage a portfolio is allowed to place on any trade, and having a set of sell orders for the investment.
"The important thing is to talk to yourself a lot. 'If I took this trade now, and it didn't work out, would I be mad at myself?' It's a good line to help stop me jumping into trades I shouldn't have made," said Burton.
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