How do you deal with financial losses?
It’s very important for you to know these simple trading tips, to protect crypto assets when the market downturn.
Profit is all the traders needed. However, if you have jumped into the world of trading, it is possible that you are dealing with a situation when the price of crypto assets turns down which causes losses. Imagine, when you buy a crypto asset and expect the price to go up, but what happens is the price goes down a lot. If you regret it, then you sell your crypto asset and your loss.
Don’t let this happen. In order to remain profitable, as a trader, of course, you must know about the “golden rules” when trading, that is buying cheap and selling expensive with the purpose of protecting your assets and of course making a profit. So how do you determine the right time to sell and the right time to buy?
Buy assets when the crypto price has experienced a deep decline and there is an upward movement, this is because there is a price correction after a sharp decline, and the price will tend to increase again. This condition, often called overbought, where the price has increased significantly and has reached a saturation point. This is due to the large buying activity followed by profit taking which causes the price to fall. Then, there will be market consolidation, where the price will reverse upward again. So when there is a crypto asset that is experiencing a sharp decline, you can buy it.
Meanwhile, the right time to sell crypto assets is when the crypto has gone up too high in a short period of time, such as up to two hundred percent, and the price starts to flatten again before declining. Because after a drastic increase there will be a price adjustment, where at this moment the market starts to get saturated with buying action which causes the price to fall again.
Don’t buy crypto assets when the price is high or the price is up 100 percent, because at that time the price could be corrected. Pay attention to whether the price has decreased or check which crypto asset prices are still below normal prices. And which one is overvalued or far from the market price.
If you loss, it’s okay to stop for a moment and take a deep breath. Manage your emotions and relax your mind when you return to trading. Start again when you have extra funds for trading.
To protect your assets so that they remain profitable, you also need to understand digital asset charts. This graph usually shows the time along with the price. There are several charts that are commonly used in trading, from the simplest ones, namely line charts and bar charts, to candlestick charts.
Trading strategies with candlestick patterns are proven to have made the achievements and success of traders anticipating losses in managing crypto assets. Candlesticks are a type of price chart used that displays 4 important information, namely the opening price or can be called the open, closing or closing price, the highest price which is high and the lowest price which is low.
Candlesticks have 2 colors, green and red candlesticks. A green candlestick means the candle is rising because the closing price of the period closed higher than the opening price. A rising candle can also be called a Bullish candle, which means close> open (the close is bigger than the open).
Red candlestick means the candle is down. This means that during that period the closing price closed lower than the opening price. Now this candle can also be called a bearish candle which means close <open (close is smaller than open). For those of you who want to see price movements in a candlestick, you can see it on the official Indodax.com website.
What often makes a lot of people loss is when they feel that the benefits they get are still lacking and always lacking. In fact, there is no activity or work carried out without the risk of loss. However, by following some of the tips above, you can make a good trading plan and strategy so that you have minimal loss and assets are maintained.