Why Day Trading Should Be Avoided by Most

Why Day Trading Should Be Avoided by Most
Difficulty
Beginner
Duration
28m
Students
51
Ratings
5/5
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Description

This course covers a hot topic in the world of cryptocurrencies: investing. We look at which investment strategies to consider and which to avoid. We also look at initial coin offerings, tokens, and how to track the cryptocurrency markets.

Transcript

Welcome to this lecture in the course. One which must be discussed without diving further into cryptocurrency investing. So, let's dive into this lecture before going any further. Now, trading is something that so many people feel like they're missing out on. By missing out, I mean they feel they're missing out on huge returns. However, they couldn't be further from the truth and I'll explain exactly why by highlighting three points in this lecture with you as to why trading in the traditional sense of the word should be left to those who are experienced in this profession. First, it's a 24/7 market. Crypto markets don't go to sleep at 6pm. Heck, they don't even go to sleep on the weekends. Because of this, the markets act in a manner which catches many newbies off guard with huge price spikes occurring while they're sleeping, and then practically unaware of the latest news story. Second is extremely volatile. Cryptocurrencies are an extremely volatile asset and cryptocurrencies as a whole are an extremely volatile asset class. It's not rare to see rises of 100% in a day followed by drops of 40% and more. Long term, I fundamentally believe in the value of Bitcoin being a substantial amount. However, we will experience short term drops or as I call them, corrections along the way to that. The reason it's so volatile is because of a lot of external factors which have an impact upon the value. A few examples of things which do impact the value of Bitcoin are, one, new stories whether fake or true, two, regulation on Bitcoin around the world, three, sudden large buy or sales following pump and dump schemes. So, those are just three popular examples as to why cryptocurrencies are so volatile. It's all so new and experimental in many aspects, hence why this is another reason I tend to inform newbies to avoid day trading cryptos as they will get caught out on the volatility. Finally, even expert traders get caught out. Yes, it's true. Even traders who have been trading on the likes of the forex exchange for years have been caught off guard by the cryptocurrency market jumps i.e. volatility. So, if you feel as a complete newbie jumping in, you're going to make a quick buck, I would bet you are more than likely to get caught out. I strongly advise you to invest for the long term. In other words, HODL. Invest in valuable cryptocurrency projects for the long term. Don't try to game the market for a quick buck, because one, you're more than likely get caught out, and two, it doesn't help this ecosystem thrive and bring about this financial revolution long term. Join me in the next lecture where I'll be talking about the infamous HODL strategy.

About the Author
Students
464
Courses
8
Learning Paths
1

Ravinder is an expert instructor in the field of cryptocurrencies and blockchain, having helped thousands of people learn about the subject. He's also the founder of B21 Block, an online cryptocurrency and blockchain school.