BTCFX: Is saying “Wow, I missed out on profit!” dangerous? What’s needed to calmly assess the market?
Hello everyone, missed profits! It seems the downtrend is favorable for a certain type of man@xi10jun1.
Bitcoin, which had been in an upward trend since March 25, finally saw a pullback sale.
We don’t know how far this drop will go, but as long as you stay calm, you’ll be fine.
*This column is designed so half of it is free to read as a conscientious feature.
This week’s performance (April 7, 2017 to April 13, 2017)
First, as usual, the records. I will announce the changes first.
- Last week (until April 6, 2017) assets: 88,254 yen
- This week (until April 13, 2017) assets: 95,116 yen
- Change: +6,862 yen
This week also reached a new high! Nearly doubling to 100,000 yen, just a little more to go!
Reflecting on the previous week’s overly bearish view, I traded in small increments to lock in profits. And of course, I could also profit greatly from the drop on the 13th. One of the few absolute truths of the market: the market reversal will come eventually.
Now, this time, we discuss what happens if you have a decent sense of the market movement but your timing didn’t align.
“Ah, I missed the profit….”
This isn’t limited to BTCFX; when you trade in the market, you’ll encounter such situations several times.
“Ah, if I had bought here, I would have made a profit… I missed the opportunity.”
This is exactly the fate of a “Toshō Tarareba girl” (a stock-market what-if mindset); no matter what position you hold, even if you have no position, you’re always filled with regret, which is the trader’s fate.
Among them, in BTCFX, thinking “Ah, I missed the profit…” can be a rather dangerous state.
Easily induces impatience
For example, in a pattern like this.
Yesterday’s drop.
Seeing this, I truly felt a surge of impatience.
“Ah, I’ve been bearish all this time, and now it comes too late. And I couldn’t ride it up… That’s tough.”
In reality, the profitable point wasn’t the first drop. It was around the middle of the second drop, when the price was about to reverse and form a bullish candle, where I took a position.
In the end, I made a profit. But what I did wrong was that I let the potential of the price movement fuel my impatience.
As you know, Bitcoin has high volatility, and you can make profits in a rapid rise or fall. But that requires calm judgment. Becoming impatient and holding positions without calm rarely yields good results.
In fact, after several more trades, perhaps due to that impatience, I cut losses more often, reducing the profits I had earned.
Free section summary: Do not rush! Wait for the right opportunity!
Rarely does the market move exactly as you expect. Instead, opportunities present themselves.
To seize those opportunities, it’s best to be calm and relaxed rather than driven by impatience. You must not let BTCFX’s potential mislead your trading decisions.
By the way, I recently read a book like this, so I’ll include a link to a review on my blog. It’s a digital book that includes a few investment failure stories.
Further deep dives are provided in the paid section, so if you’re interested, please consider subscribing! Weekly updates for 400 yen per month, around 80–100 yen per column!
Ending Corner 1: Try shopping with Bitcoin!
In fact, on the overseas e-commerce site “FANCY,” you can purchase goods with Bitcoin! It costs a bit for shipping, but there are stylish items you won’t see in Japan!
I’ve summarized how to use FANCY on my blog, so please refer to that.
- →Explaination of creating and registering a FANCY account and how to purchase items with Bitcoin | Yutori-sei no toukaij jun
- →How to buy FANCY items with Bitcoin (Bitcoin) | Yutori-sei no toukaij jun
Ending Corner 2: How should I report BTCFX profits on taxes?
BTCFX profits must be properly declared! I’ve written a blog post after confirming with the tax office by phone, so please take a reference.
Note: Even tax offices and tax accountants may have differing views. Also, laws can change, so filing methods may change. Before filing, be sure to confirm with your nearest tax office or a tax professional.
Note: The free portion ends here. The following sections provide detailed analysis and future prospects, so it will be paid content. If you’d like to read more, of course, or if you would subscribe as a token of support, that would be greatly encouraging! Thank you for your continued support!
