2021 is a crazy journey for the cryptocurrency market, as Bitcoin set a new record of $64,863, shocking opponents, and the DeFi and NFT fields have become headlines around the world.
Cryptocurrency traders need to be wary of such periods, because of the well-known volatility of the cryptocurrency market, once the trend changes, huge wealth will disappear within hours or days.
According to Charlie Burton, a veteran trader and co-founder of Ezeetrader, for every trader, when emotions start to heat up, they must adhere to a clear set of rules, because “we are all prone to mistakes. Defective human beings, especially in front of the market.”
Burton said,
“We are naturally affected by greed or fear of one tendency or another. So we absolutely need to have some simple rules, but I also want to say that a lot of visualization is good.”
These rules may include things such as the investor setting a stop loss percentage, the maximum percentage of the portfolio allowed to conduct any trade, and setting investment sell orders.
Burton said,
“The important thing is to have a lot of self-talk. “If I accept this deal now, but it doesn’t succeed, will I be angry with myself? “This is a good route to help prevent me from jumping into transactions that I shouldn’t be involved in.”
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
