As a seasoned crypto investor with a few battle scars from past market volatility, Peter Brandt’s words resonate deeply with me. His insight into the importance of capital preservation following profitable periods is a crucial reminder that making money in trading is only half the battle.
As a market analyst observing the tumultuous trading activity in both the cryptocurrency and financial sectors, I’d like to share some insight from seasoned trader Peter Brandt that could be valuable for navigating this volatility.
Brandt, renowned for his profound understanding and extensive background in trading, emphasizes a crucial truth: while earning money through trading can be achievable, retaining those profits poses the true test.
Brandt’s wisdom comes from decades of involvement in diverse financial markets, including cryptocurrencies. He emphasized that making consistent profits isn’t the sole key to achieving long-term trading success. Instead, it’s equally crucial to safeguard those gains. As Brandt sees it, recognizing this truth was a significant milestone in his trading journey.
Making money through trading can be effortless. However, holding onto those gains is where the real test lies. A significant milestone in my development as a trader occurred when I became aware that regular market fluctuations necessitated repeated investments of the same amount of capital. Preserving capital during profitable spells is absolutely essential.
— Peter Brandt (@PeterLBrandt) June 13, 2024
The seasoned investor noted that recurring market downturns, during which different investments suffered substantial drops in worth, compelled him to reap the same profits over and over again. This continuous pattern of earning and losing highlighted the importance of safeguarding capital. For novice traders, particularly those delving into cryptocurrencies for the first time, these market downturns may induce disheartening feelings and a propensity towards reckless attempts to recoup losses.
Successful traders have the skill to navigate through market downturns without squandering their gains. According to Brandt, this ability sets them apart from others in the trading world. His advice underscores that profit-making is only one aspect of trading; preserving profits necessitates self-control and discipline.
As a successful crypto investor, I’ve learned from experience that after enjoying a profitable streak, it’s essential to adjust my approach. Instead of actively seeking new opportunities for aggressive trading, I focus on preserving my hard-earned gains. This shift isn’t about becoming risk-averse but rather about managing risks more carefully. In other words, I aim to protect my capital by being selective and cautious in my investment decisions.
In the trading on Wednesday, Bitcoin momentarily surpassed $70,000 as the Federal Reserve kept interest rates steady and indicated that just one reduction may occur by the year’s end.
On Wednesday, the Federal Reserve kept interest rates unchanged at 5.25%-5.50%, indicating that they plan to lower rates just once towards the end of this year. This is a departure from the earlier prediction made in March, which called for three rate reductions.
When I penned this down, Bitcoin was on the verge of wiping out its advances and had climbed a modest 1.75% over the previous 24 hours to reach a price of $67,928.
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2024-06-13 14:52