Although a person’s emotional range might be wide and complex, traders usually identify 14 essential trading emotions. These typically occur in waves, starting with elation and enthusiasm and ending with despair and melancholy.

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How emotions impact the trading decisions you make

Cognitive biases: Insecurity and excessive risk-taking, or, conversely, fear of losing and giving up on trading, are only a few of the cognitive biases that emotional trading may cause.

Making snap decisions: Making snap decisions can lead to expensive errors, a lack of control, and supervision, which could expose traders to higher losses.

Loss aversion: This mentality can lead traders to focus only on their immediate losses and steer clear of the market.

Techniques for emotional management

Emotional intelligence is an essential competency for cryptocurrency traders. The following strategies can assist you in controlling your emotions and making sure that strategy, not emotion, guides your decisions:

Keep a trading journal: Recording all of your trades, along with the reasons for them, the results, and your emotions at the time, can be quite illuminating. By going through this notebook, you’ll be able to recognize emotional trends and triggers, which can help you draw lessons from the past and make more thoughtful judgments going forward.

Establish definite objectives: Establish your goals for your trading, whether they be to accumulate wealth over the long term or to bring in a specific quantity of money. Setting and achieving specific goals might help you maintain focus and avoid making rash judgments.

Make a strategy for trading: Your trading methods, risk tolerance, and conditions for entering and leaving trades are all outlined in a clear and concise trading strategy.

Adhere to your plan: Once you’ve made a plan, follow it through. Although it’s simple to be influenced by market hysteria or panic, going off course during these periods frequently results in bad choices.

Making Decisions in Trading

Making the correct choices can make the distinction among success and failure when trading. It’s not simple to navigate the intricate world of financial markets, though. Traders frequently have a plethora of options at their disposal, each with possible risks and rewards.

A frequent mistake made by traders is over-analyzing. With so much information at their fingertips, it’s simple to become overwhelmed by the seemingly limitless array of graphs, charts, and indicators. Although analysis is crucial, becoming paralyzed by analysis can result from investing too much time examining every little aspect. Occasionally, it’s preferable to follow your intuition and make a choice based on your gut.

However, rash choices can also seriously harm a trader’s holdings. The temptation of rapid gains or the fear of losing out can impair judgment and cause impulsive trading decisions that are not supported by good strategy or reasoning. Instead of letting their emotions dictate their decisions in the heat of the moment, traders must exercise self control and adhere to their trading strategy.

In order to make profitable trading decisions, one must strike a balance between meticulous planning and methodical execution. It entails being aware of market trends and, when needed, having faith in one’s gut. Maintaining long-term profitability requires finding this fine balance, which takes practice and effort to get right.

To sum up

Anyone who is prepared to invest the required time, energy, and dedication can become proficient in trading. It’s not about being an expert in mathematics or possessing a degree in business. Trading success is the result of a persistent dedication to studying, comprehending the workings of the market, and carrying out a carefully thought-out plan. It necessitates an ongoing procedure of self-improvement, a willingness to grow from mistakes, and emotional self-control.

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Reference List

• Trading Psychology: Why Behavior Matters for Traders

• Emotions in Trading: A Guide to Understanding & Managing | Capital.com

• Trading Psychology: How to Manage Emotions and Decisions – Kriptomat

• The Psychology of Trading: How Emotions Impact Decision-Making | Forexlive

• The Psychology of Trading: Emotions and Decision-Making on Olymp Trade | by Sanjay Kumar | Medium

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Bitcoin had been hovering around the $70,000 level on March 12 but surged later, surpassing its previous all-time highs. On March 14, 2024, it set a new record of $73,750, with a market capitalization reaching $1.44 trillion the highest level ever, surpassing the level of November 2021. Both Bitcoin and the range of the 100 largest currencies have grown by about 70% this year.
In this article I will express my thoughts over how Bitcoin hit its ATH, the aftermath as well as how altcoins will be affected because of this. 

How did this happen?

A few weeks ago, the US Securities and Exchange Commission approved the first exchange-traded fund (ETF) in bitcoin spot, paving the way for the upward trend. Additionally, investors anticipate the upcoming “halving,” which occurs every four years and halves the supply of new cryptocurrencies, further bolstering its price. The next halving is anticipated around mid-April.

The Aftermath

Bitcoin’s rally is producing around 1,500 new “millionaire wallets” every day, according to cryptocurrency analytics firm Kaiko Research. That’s still lower than the rate of millionaire wallets created during Bitcoin’s bull run in 2021, however, when more than 4,000 wallets a day reached the $1 million mark.
Monetary policy developments strongly influence the overall market, fostering investment “euphoria” and increasing risk appetite. Since the beginning of the year, Bitcoin has surged by over 70%, propelling the entire market upwards. Smaller tokens like Ether, Solana, and Avalanche are experiencing gains of 1%, driven by Bitcoin’s momentum. Data from CoinMarketCap shows that the global cryptocurrency market currently values at $2.68 trillion, with an increase of almost 1.6% in the last twenty-four hours.

How will the Altcoins be affected?

In the following month, Bitcoin undergoes an event known as halving, which reduces the supply of new Bitcoin by half. When Bitcoin’s daily production halves, the probability of its price increasing rises. For instance, if the total production of copper halved while demand stayed constant, the price of copper would rise.

The end of the bull cycle

Whenever there is a sudden explosion in Bitcoin, the next question arises about when the collapse will come. In its previous outbursts, including 2013, 2017, and 2021, the digital currency consistently broke its all-time highs, followed by sharp declines.

Previous Bitcoin crashes stemmed from various events: regulatory crackdowns, transaction violations, product crashes, and burst bubbles. The history of Bitcoin seems to repeat itself in a perpetual cycle of boom and bust, drawing many back to the currency every few years.

Conclusion

Bitcoin is making history, reaching a new record and changing the game in the stock market with the approval of ETFs. ETF demand, tight supply, and expectations of looser monetary policy fuel a bullish mood in cryptocurrencies. The upcoming halving in Bitcoin makes this a good time to consider entry into several altcoins (after careful study), expected to thrive this year.

However, one should be mindful of the potential decline that may follow this surge, as seen in previous instances.

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Reference List

Bitcoin: Θα επαναληφθεί η ιστορία;
Bitcoin reaches new all-time high, surpasses Silver in market cap
TOP 13 Altcoins to 10X By Bitcoin Halving

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United Parcel Service, Inc. (UPS), is a global leader in logistics and package delivery services. Established in 1907, UPS has continually evolved to meet the changing needs of businesses and consumers worldwide. Currently, with a commitment to sustainability and technological advancement, UPS continues to invest in cutting-edge technologies and eco-friendly initiatives to maintain its position as a leading logistics provider.

As of March 2024, United Parcel Service (UPS) holds a market capitalisation of $129.33 billion, positioning it as the 105th most valuable company globally based on market cab according to CompaniesMarketCap.

UPC Performance During Economic Slowdown

As the economy faces challenges, United Parcel Service (UPS) is feeling the effects. The company operates in a field that goes through ups and downs, so it’s not surprising that its revenue took a hit last year as the economy slowed. The situation worsened due to long discussions about worker contracts, leading some customers to choose other delivery companies instead. However, despite these difficulties, the price of UPS’s stock looks attractive, and it pays a good dividend of 4.5%. So, is it a good time to buy UPS stock, or should investors be cautious? Let’s take a closer look.

Financial Snapshot

Recent financial disclosures do not look very promising for UPS. The company faced challenges in 2023, with volume, revenue, and operating profit declining across all business segments. In Q4 of 2023, its revenue fell by 7.8%, and for the whole year, it dropped by 9.3%. 

The labour contract negotiations further worsen the situation, contributing to higher costs and operational disruptions. Concurrently, adjusted income for the year dipped by nearly 29%, with segments like U.S. domestic package and industrial experiencing significant profit contractions. 

In response, UPS announced strategic measures, including exploring options for its truckload brokerage business (Coyote) and reducing its workforce by 12,000 positions to reduce costs. The CEO also mentioned during a recent call that the company had won back almost 60% of the customers it lost during that time. If you are thinking on investing in UPS Stock, you can start immedeiately at eToro!

Capital Intensity and Competitive Edge

UPS operates within a capital-intensive environment, evidenced by substantial annual CAPEX expenditures over the past decade. This capital intensity acts as a barrier to entry, discouraging potential competitors from replicating UPS’s expansive global network. Despite the significant costs involved, UPS’s vast infrastructure and operational scale afford it considerable cost advantages, marking its well-established position in the market.

Operating Cash Flow and Free Cash Flow

Examining UPS’s operating cash flow (OCF) and free cash flow (FCF) reveals a mixed picture. While OCF remained relatively stable over the years, FCF exhibited more variability. Despite these fluctuations, UPS’s ability to generate cash flows shows its resilience against challenging market conditions.

Outlook and Valuation

Looking ahead, UPS faces another challenging year in 2024, with modest growth projections and earnings disparities between the first and second halves of the year. Analysts’ estimates for future earnings exhibit significant variance, reflecting the uncertainty surrounding UPS’s future performance. Valuation metrics, such as the price-to-earnings ratio (P/E), suggest a moderately priced stock, albeit with inherent volatility and unpredictability in earnings.

Despite these setbacks, UPS is trying to make more money from small and medium-sized businesses. The company is also focusing on healthcare services, and it’s making efforts to save money.

Conclusion

Looking forward, UPS expects things to get better in the second half of the year. The company plans to grow its business and cut costs, which could lead to more profits. While there might be some bumps along the way, investors who can wait it out might see good returns in the long run.

In conclusion, while the company faces challenges, it also has potential for growth, especially if the economy improves. While UPS remains a stalwart in the logistics industry, the evolving market dynamics and economic headwinds necessitate a cautious investment approach.

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Reference List

UPS Stock: Buy, Sell or Hold?

Is UPS A Good Long-Term Investment?

3 Magnificent High-Yield Dividend Stocks to Buy for 2024

UPS 4Q 2023 Earnings

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