TRON – I lost my Girlfriend, Dog and Truck, I miss the dog…”
Trading TRON ($TRX):
I have heard many sad stories in the above chart. The main ones are the extreme losses and deep beliefs that were made with this coin akin to the EOS XVG IOTA and BAT groupies. Many of which have been burned and the startling facts to me are how often these newbie traders or crypto investors broke basic rules of which cost them some sleepless nights if not outright misery. Of these rules people investing too large an amount into any one coin or project and then exiting/entering at the wrong times only to panic out again, repeating this pattern over and over with disastrous results. I will once again point out what was done wrong and what can be done to prevent such as I know most of you don’t want to lose your DOG! Most other things you are probably ok with LoL.
First I am not going to mention names even though those who have fallen victim to the violence of this market downturn the past 6 months, who of which gave me full permission to share their stories, as they wish to help prevent others from suffering such as they have, and that is very noble of them indeed. I thought it odd that TRX and XVG were the most often spoken coins of the disgruntled traders out there, but then again they HYPE and marketing of these guys in the crypto space has been extreme and shows up in search engine results very often. This basically is stating way too many people have been crushed by the TRON moves, one guy lost over 30% another over 50% and one above 85% of their investment funds. Most of them have wives/girlfriends that are also not very amused and one is currently in hiding from his wife, which from the sounds of it may need to go to authorities and enroll in the witness protection program. All of these individuals were men who put most of their funds in TRON and tried to buy and sell @ different spots with little to no technical knowledge of the charts or any more of risk/money management skills, basically, they were noobs… They readily admit this. Most people in Cryptocurrency trading are noobs so that is perfectly ok. Two of the people are recovering noobs and in Signal Groups we list on the site, who are now getting educated and recouping the losses they suffered from in the past at a good rate.
Know your mind is naturally WIRED wrong for trading to start with
This might sound odd to you but in our primitive mindset we are far less logical then we would like ourselves to believe we are, often if you ever wondered why you made a trade looking back because of a feeling/thought/idea/hope and then if asked what is it based on you would search for reasons to validate that trade, well you are following the exact wiring you were programmed to and logically it is exactly why most lose in trading. Most will use subjective data to validate a position/trade. Example of this #1 you hear about TRON you then do research how great it is read all kinds of stories = develop a belief in it, you are now #1 a BELIEVER, next you will go and search for people who hold that belief as well and look for them to tell you that what you are doing is correct, whether it be in charts/indicators/news/Facebook/family/friends/youtube/fortune tellers, won’t matter, whatever you can find that agrees with your idea/trade. This is subjective reasoning and when invalidated = prices go down instead of up you get upset emotional and FIGHT = buys more abuse people online in chatrooms who disagree or make comments in forums how stupid people are for selling TRON! The other side is the FLIGHT = SELLS out of fear or losses as your money disappears, and will often go through the cycle of buying high selling low being jerked around the market, ultimately losing net because you are caught in an emotional trap based on trying to win, instead of trying to make good trades. Objective thinking is based on logic to produce a result and seeks to find whatever means that will produce that result, in this case, profits. Nothing can predict the future but at least seeing what is there will help give you better odds of success. Most of the newbie traders simply are unable to see they are seeking subjective reasoning instead of objective reasoning. Until you learn how to REWIRE your brains in time, you will be the tail that gets wagged by the markets…
The Rules of a Trader/Investor
One thing that none of the above traders who were beaten to a pulp trading TRON/TRX had rules, not one of them! Looking back at it, kinda seemed like they were playing a drinking game with crypto, buying the market up and down emotionally in drunken sprees. Each had more than 50% and even up to 100% of their holdings in TRON at some point. So in knowing this, I will discuss some basic rules most investors and traders follow.
- Never invest money you can’t afford to lose…
- Never invest more than 5%-10% of your holdings in any one coin/company/ICO etc…
- Get educated to the fundamentals/technicals so you can build an investment/trading plan ahead of time.
- Keep a journal of your trading/trades.
- Know that you can lose as well as gain from any one investment.
The above rules are very basic outlines of what most professionals in the trading field do and are considered basic education for the crypto trader to build on. Upon examination, each of the individuals broke almost all of the above. Each overleveraged and became believers in TRON as the second coming, not thinking for a moment that they were holding a dog and not the kind that man’s best friend, but phucking CUJO instead. Each of them traded with no plan emotionally buying tops selling bottoms, losing money all the way down. Looking at the chart from a technical perspective I am kind of shocked as it was not a difficult one to trade profitably with its big moves up and down. If one used some basic TA to trade TRON they could have minimized the damage at worst, at best they could have actually made good money trading it, even with the bear market move. One trader did keep track and write things down, so for that, I have to give him credit even if he had no real basis for many of his trades, he at least was willing to observe the charts and make notes of the movement, which leads to good things like planning trades or observing behavior/patterns/ranges and so on, as noted in the picture below.
Looking back, what can we learn here?
We can learn several things, mostly what happens to most newbies when trading crypto, as I am very sure that far many more are like them then most would care to admit to. If you identify with them and want to take steps to protect and even learn to trade successfully, well listen closely then. Get an education on the charts/trading by first going to a very easy/fun place to learn the basics babypips.com is a great place to learn about currency trading and start your way to deeper understandings of market dynamics and technical analysis, which can show the real underpinnings of how the markets work. If you are ready for more advanced signals or trading education then check out this article on different Crypto Trading Groups which many provide trading signals as well as advanced cryptocurrency trading education, along with chatrooms where you can discuss with live traders and fellow bitcoin warriors seeking to make profits just like you! Education and time are your best friends in learning to navigate the crypto seas and help prevent you from going under…