According to this pseudonymous analyst, the second leg of the bull market is still far ahead. And we’ll all need patience to get there. Using the Sentient Trader technical analysis software, Charting Cycles predicts that we’re still at least a couple of months away from the end of the… cycle. We haven’t put the 18 months since Black Thursday. The flat-horizontal period that seems to last forever still has a long way to go.
Here’s the chart:
— Charting Cycles (@ChartingCycles) July 15, 2021
And that leads us to the reason to be for this article, patience. It’s as Warren Buffett said, “The stock market is a device for transferring money from the impatient to the patient.” And, in this case, the same rules apply to the cryptocurrency market.
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All We Need Is Just A Little Patience
The cryptomarket is wild. The ups and downs are not for the faint of heart. If you’re not a day trader and aren’t using leverage, however, are they really that relevant? Hopefully, you did your homework. You did your own research. You know the fundamentals and invested wisely. If you made an informed decision and identified a buying opportunity, well, all you need is just a little patience.
If you’re playing the long game, get your emotions in check. It’s a scary ride, but nothing will come from rushed decisions and fearful trades. Remember, you did the research. You made your bet. If you’re wrong, you’re wrong, but respect the parameters you set yourself. If you identified an entry point, stick to it. If you have a target price, wait for it. You made the plan. As long as it’s moving between your parameters, let the chips fall where they may.
You can’t beat the market all day/ every day. It’s the nature of the game, you will be up and you will be down. Be patient and stick to the plan. However, don’t hesitate to pull the trigger if things turn ugly and the plan breaks.
BTC price chart on Bitbay | Source: BTC/USD on TradingView.com
Other Sources Tell Us About Patience In Trading
Investopedia summarizes everything and elaborates on the previous idea:
… so much of trading is psychological, making patience a great virtue for investors. Exhibiting patience when entering a trade and having patience while a trade develops are integral parts to successful trading and investing. However, allowing patience to turn into stubbornness is something you must always guard against; consistently exiting a trade according to predefined criteria is one of the best methods of improving your success as a trader.
TradeYourEdge introduces a new idea:
The market knows better than you, so never rush for a trade. Have patience and wait for the right signal. There’s a golden rule of trading – no signal, no trade.
In their MrIndice profile, eToro also summed up the idea:
MrIndice is a trader who understands the value of patience and self-discipline when he is investing. It’s a philosophy that many successful investors share and is worth exploring in more detail. There are plenty of anecdotes about traders who followed hunches, or responded to their intuition to make quick profits. But long term success is built on effective fundamental and technical analysis, combined with reasoned strategies and logical thinking.
Cryptominium gives us a tip for exercising patience:
Another thing that you can do to prepare is create a trading philosophy. Make sure that you know what type of trader you are, how aggressive you want to be, and other philosophical rules that you may want to adhere to.
One Last Thing Before Concluding The Ceremony
Related Reading | Patience Pays: Get to Know Popular Investor Reinhardt Coetzee
To close this, Coinsbank puts things into perspective:
Patience is the key to trading in cryptocurrency. Do not be afraid to miss any deal – the market is so big and developing that there will be enough money for everyone. However, remember that it is easy to make money on the market, but it’s hard to keep what you have earned.
Featured Image by anncapictures from Pixabay - Charts by TradingView