This is not a how-to on trading cryptocurrencies. It isn’t about making money, investing, or where to look for alpha.
If you’ve gotten involved in cryptocurrency trading, you already know this one thing: it may be all-consuming. When your money is invested, you look at prices more than social media, you focus on charts, and even your sleep is riddled with candlesticks.
It is, needless to say, not healthy. We all want to make money in the markets, but this kind of stress isn’t necessary or sustainable.
Four stages go into putting on a trade: preparation, action, upkeep, and reflection. During the first three parts, it’s crucial to keep your emotions out of your trading. If you can manage your feelings during those stages, it’s much easier to make the right decisions.
The final stage of trading – reflection – is when you analyze whether or not you made a good decision and how it would have been different with a calmer mindset. A more relaxed mind can help you lower your stress when trading cryptos.
Set trading days and hours
Sure, the exchanges are accessible 24 hours a day, but that does not imply you must be. Treat it like a business that’s open from 9 to 5 then go have dinner and live your life like a normal person. Treat it like a business that’s open from 9 to 5, then have dinner and live your life like an average person.
Make a plan. Stick to it.
Mental discipline is a vital aspect of staying sane when trading cryptos. What am I willing to give up obtaining it, and what can I stand to lose if I make the trade? You’re less likely to act on emotion after you’ve “capped” your potential losses and gains.
Treat losses as an opportunity to learn
Every loss may teach you something about trading. Reframe the setback. Don’t allow it to be a source of bitterness, misery, or self-punishment. Let it be a learning opportunity.
Firstly, consider whether you made a mistake by coming in with a more than 50% positive advantage and then getting unlucky. But don’t deceive yourself. If you’ve been unfortunate, accept it and move on – because it will happen again, and you must concentrate on the long term.
Secondly, ask yourself if that isn’t the case. Find out what went wrong if you made a mistake. Is the reasoning faulty? Was it correct, but your assumptions incorrect? Cold analysis might help to relieve hot anxiety and subside greed.
It might be obvious, but traders often neglect it. To clear your mind, you must go to the gym or engage in some other type of exercise.
It’s natural to worry about the prices, positions, and possibilities throughout the day in the early days of crypto trading. Check your impulse by separating your various activities in life and then concentrating on what you’re doing.
When you’re with your kids over the weekend, that is your top priority. When you’re in trading mode, on Monday morning, it should have your full attention.
Don’t put too much of a financial strain on yourself
When your financial existence is on the line, the deals become harder to swallow. It’s more difficult to make logical judgments. It’s easy to get caught up in worry, which may induce you to seek out negative or positive outcomes.
Strip away the emotions
It’s important enough to repeat. It’s critical to have emotional self-control when you’re trading. A superb method to increase your emotional self-control. Put it into practice. Time invested in the task. Want more info from professional traders? Find this here.
Step away from the tech for a while, including laptops, cellphones, Twitter and the works. It’s critical for your equilibrium and mental stability. There is a whole world beyond cryptocurrency, although some people struggle to believe it.
Know that crypto obsession will never truly go away
Even the most experienced investors, according to several studies, have been known to succumb to compulsive price-checking behaviour from time to time. Despite this, it is still a struggle at times. You can’t anticipate when bitcoin will throw you on the roller coaster.