Just wanted to post some guidelines I feel are useful for crypto newbies (myself included). I will not bother too much with explanation of each point, cos they will take more time than I can afford in this post. So here goes,.....
1) Never put all eggs into one basket.
Guess you would have heard this one by now if you've been in the investment scene long enough. My colleague reminded me just a couple of days ago how he intended at first to put his full investment amount into PIVX when he started. I advised against it and looking back I was thankful I did. We got into PIVX when it was about a dollar. It went to about two and came down since. As of now it is about 95 cents as we speak. Funny, I don't remember him thanking me for it......
2) Learn to take some profits early.
I guess the first milestone to take profit should be when the coin doubles in value. To be frank I struggle with that. It is even more difficult to do so especially if the value doubled in a short span, giving the impression there is still some way to go before the coin loses steam. Judging from the PIVX example above, that would be a wise move.
3) Cut losses when it reaches about 20-30 percent.
I know the feeling when you get when you find a coin you feel or have researched to be fundamentally sound only to have the coin depreciate when you buy into it. The temptation is definitely there to either average down and buy more coins at a lower price or to just hold the coins no matter how low they go. After all, when they start moving, they'll definitely go much higher right? While that may be true, one needs also to consider the opportunity costs of leaving capital in one asset and not be able to use it for something else. There's no denying, it's definitely painful to see your assets depreciate and holding on to them without a physical loss means you have not made a loss yet. But any seasoned trader and investor will know to cut losses early and move it to something else when an opportunity arises.
4) Time to move on if your investment doesn't yield.
Again, we crypto-investors are so spoiled since many cryptos appreciate at the speed of light it seems. So, it doesn't make sense to lock too much money for too long into a single crypto, even if you are a long term investor. I do realize there is room for contention in this point. I guess it also depends on what type of an investor you are. If you a trader, you definitely do not want to hold any coin for a prolonged period of time. My point is to have a disciplined way of investing as much as possible.
Okie, that's all for this post. I'm sure the points above can be counter-argued. I personally find them useful most of the time. Very occasionally I have to deviate from them. But sometimes I look back and realize I deviated from them to my own peril. Each of us have different personalities and investing styles. The important thing is to have some guidelines to stick to. They are like the anchor to the ship at sea.
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you made very good point and thank you for the info
newschannel428, thanks for the encouragement. Appreciate it!