Not Having a Plan = Purposeless Trading
This leads to inevitable losses.
The psychological burden of remaining "disciplined" by sheer force of willpower is too great of an ask for any normal human being in the cryptocurrency markets (in my opinion).
Also, there are exceptions to every tenet, axiom and principle you can imagine. Sometimes it is smart to buy the news. Or to quickly exit a position to "chase green candles", 'HODL', etc., so if you restrict yourself to religiously adhering to any one of these philosophies, you'll find yourself either (a) taking enormous + unnecessary losses or (b) foregoing great opportunities.
Why Having a 'Plan' is the Answer
Even when I got good at charting and figuring out when an asset would go up/down or identifying pivots in price or underlying price trends, I still struggled to be a profitable trader.
There's way more to investing than simply "calling" whether an asset will increase or not. For ex, I could've put out a price analysis that just said, "Bitcoin looking bullish!" and left it at that. Then, everytime Bitcoin price went up, I could follow up and say, "See guys? Told you I was right! I said Bitcoin was going to go up and it did."
But what good does that do? Price action is never linear. Right after I put out that price analysis, Bitcoin shot up to $23.7k right after I published that price analysis (Jan 13th-Jan 29th).
Then from Jan 30th - Feb 11th, the price retraced all the way back down to $21.5k.
If I had came in here on January 29th and said, "See how right I was guys? Bitcoin went up!", I would've looked like a fool a week later when the price drew down ~10%.
This leads to inevitable losses.
The psychological burden of remaining "disciplined" by sheer force of willpower is too great of an ask for any normal human being in the cryptocurrency markets (in my opinion).
Also, there are exceptions to every tenet, axiom and principle you can imagine. Sometimes it is smart to buy the news. Or to quickly exit a position to "chase green candles", 'HODL', etc., so if you restrict yourself to religiously adhering to any one of these philosophies, you'll find yourself either (a) taking enormous + unnecessary losses or (b) foregoing great opportunities.
Why Having a 'Plan' is the Answer
Even when I got good at charting and figuring out when an asset would go up/down or identifying pivots in price or underlying price trends, I still struggled to be a profitable trader.
There's way more to investing than simply "calling" whether an asset will increase or not. For ex, I could've put out a price analysis that just said, "Bitcoin looking bullish!" and left it at that. Then, everytime Bitcoin price went up, I could follow up and say, "See guys? Told you I was right! I said Bitcoin was going to go up and it did."
But what good does that do? Price action is never linear. Right after I put out that price analysis, Bitcoin shot up to $23.7k right after I published that price analysis (Jan 13th-Jan 29th).
Then from Jan 30th - Feb 11th, the price retraced all the way back down to $21.5k.
If I had came in here on January 29th and said, "See how right I was guys? Bitcoin went up!", I would've looked like a fool a week later when the price drew down ~10%.