May be does not even start with trading and controlling the emotions. One should have this power of controlling emotions naturally or should be developed in general. Not just when we are ready to trade and then we should start controlling.
According to me, I believe this is strong type of feeling based on our hormones. If you start to control it in day to day life then you would never fail at trade “emotionally”. That’s what I think. There are many scientifically proven ways to do this and one of the vital way is “Yoga”. It’s best game changer one can experience.
It might sound I am talking way different.
Everyone talks about you should control the emotions. The real question is how? Better everyone try to develop different ways to do it like Yoga and Meditation.
Topic: 10 tips to manage one's emotions while trading crypto. - page 5. (Read 739 times)
As far as I see it, an important component of being a successful trader has to do with psychology, with being able to control emotions, it is not pure mathematics. In poker something very similar happens, and the advice given on psychological issues in poker schools is similar. In the end, the emotional component accounts for a large part of the ROI in both trading and poker.
When emotions control us, it will make us get out of the plans we have made carefully. Like when we want to decide to take profits when the profit target reaches 5% but because emotions control us like we become greedy when trading, we instead increase our take profit target to 10% profit. and sometimes that's a good thing. but sometimes to also make us fail to get profit.
If you clearly know that what price is your profit taking price and you know that you are not good to control yourself, set an order to wait for selling at that price. When market moves to that price, your position will be filled and you take profit without emotion.Now, if you want to gamble with luck, you can reserve like 10% of your coin to let the market and profit runs, then you can take profit at higher price if you are luckily enough. If price falls back, you can sell it at lower price but should not be below your entry price. Whatever happens after your take profit with 90% of your capital, you already get profit in hands and the rest 10% ends with a draw is not bad.
Don't let the rest 10% ends with a loss too. You can use a Stop loss order to sell it at your entry price or a little higher than your entry price.
Emotions are hard to control, but in this aspect it is true that anger will lead your nowhere near the goal that you set your eyes on. Actually, even in general, too much investment on our emotions while trading crypto can lead to risky decisions that we may regret in the long run. Essentially, you can't allow yourself to feel too much but also not too little, since instinct can also lead to good decisions at times (like when we say that we have a good feeling about a trading decision). In the end, keeping ourselves and our emotions in check helps a lot in managing our decisions and actions in trading crypto as they are aspects that affects the results that we are looking for.
When emotions control us, it will make us get out of the plans we have made carefully. Like when we want to decide to take profits when the profit target reaches 5% but because emotions control us like we become greedy when trading, we instead increase our take profit target to 10% profit. and sometimes that's a good thing. but sometimes to also make us fail to get profit. because after a 5% increase in price could have dropped back quickly. And we panic and end up just selling at the same price we bought or even at a lower price than our buying level. The point is not to let emotions control us. but we have to control our own emotions. And usually it is experience that will make us more able to control our emotions. because we will get to know the market situation better and guess where the market is going. This wasn't said in there but it doesn't really crack into top 10 to be fair so I can understand why its not there. But do not get into trading when you are already dealing with a problem. It doesn't matter what it is, maybe you heard someone you love got sick, maybe you had a fight with a friend or wife or someone you care about, maybe you just lost in a computer game in an unfair way, yes even that because even the smallest and most unimportant things could matter to your mind, some people won't care about that, and some people would be incredibly mad. This is why its quite important that you do not deal with any baggage when you start trading, if you do then its a problem for you without a doubt.
Trading requires a lot of focus and concentration. Hence, you need to have a relaxed mind and body for you to be able to maximize your attention on your trades. Problems have no room in trading, otherwise you’ll never go straight to your goal because you’re totally destructed. Also, trading with emotions will never lead you to progress and success, thus you need to stay calm and relax whenever you’re trading. 
7. Watch out for greed.
Be careful with this because this would primarily the reason on why you would really be that committing lots of mistakes due to greed because this would really be pushing you to play more
specially if you are really that longing for more money which is something that we must avoid specially if we are dealing with gambling.Its true that emotion would really be the main culprit
on why a certain trader would really be committing those impulsive decisions basing up on their trading plans and methods which they had planned earlier. If you arent that good when it comes to
self control then you would definitely be prone into lots of errors.
There's no assurance that you wont really be affecting or making yourself that be on the situation since we are just humans on which it would really be that normal that we do feel out those kind of emotions when we do touch up on trading with this unpredictable space.It would really be that normal that we would really be having that kind of encounter because price is unpredictable
on which lots of what ifs would really be molding up into our mind and trying it out to answer it out.
Learn to control your greed. That is the only way you will never struggle in battling with your emotions since you already know in the first place that trading without emotions is way more successful than to trade with personal emotions that will only ruin your focus and determination in trading. Though greed is part of us, but trading with greed will never help a trader and will only redirect his set plans that will never be good in trading. Be careful with this because this would primarily the reason on why you would really be that committing lots of mistakes due to greed because this would really be pushing you to play more
specially if you are really that longing for more money which is something that we must avoid specially if we are dealing with gambling.Its true that emotion would really be the main culprit
on why a certain trader would really be committing those impulsive decisions basing up on their trading plans and methods which they had planned earlier. If you arent that good when it comes to
self control then you would definitely be prone into lots of errors.
There's no assurance that you wont really be affecting or making yourself that be on the situation since we are just humans on which it would really be that normal that we do feel out those kind of emotions when we do touch up on trading with this unpredictable space.It would really be that normal that we would really be having that kind of encounter because price is unpredictable
on which lots of what ifs would really be molding up into our mind and trying it out to answer it out.
It is important to track your losses and profit. Because with that, you're able to distinguish if you're a profitable trader or you just keep on losing.
At the end, you'll still be emotional whether you track it or not because that's what trading is for. Even if you're not going to say that you're not an emotional trader.
That will still push you to look at your progress and the pressure will remain as you do your trades. IMO, it's okay to track those.
If you can track your losses as well as your profits, then you can evaluate yourself as a trader if you are really making progress or not. Otherwise, if you keep on committing consistent losses without getting any significant gains, then think a lot of times if you still want to pursue trading. Though these can trigger your emotions as a trader, but I do believe it’s actually important so you can set and improve your goals as a trader. At the end, you'll still be emotional whether you track it or not because that's what trading is for. Even if you're not going to say that you're not an emotional trader.
That will still push you to look at your progress and the pressure will remain as you do your trades. IMO, it's okay to track those.
4. Don’t keep track of profit and loss. Doing the math on your earnings will only get your emotions working. Concentrate on your trading strategy, and review your trading journal to develop it. Then, at the end of the trading day, you can check out how well or poorly you did.
If you are weak to keep track of your profits and losses then you are quite emotional in trading. Because when you emotionally stable you can accept your faults and loses regarding this. We should learn from our wrong decisions and should encourage ourselves by observing our right decisions.I was a quite emotional trader before and still now a little bit but now I try to believe on myself and open trades only based on analysis. I never regret if I miss a bull run or close any trade earlier. Actually most of these tips are really very effective and proved to control one's emotion while trading.
It's easy to say but it's hard to follow theres a lot of professional traders, some of them manage to gain profit without getting committed to the things they are doing but we cannot deny this emotion sometimes takes a risk to our position, for example, there's a trader live streaming in the internet that he loses million of money while doing live (I don't know if you see this but its spreading in the internet), he didnt make any emotions with that poisition ebcause he knows he over commit and take holding the position even its lower than its support reason why to lose more money, but its a small amount to him because he is an active trader but how about other people do they manage to risk like this or not.
These aren't really tips that people don't already know, the problem is not awareness about these aspects of trading. We all know we're prone to emotion in trading, same as gambling.
Here's a real tip that helped me in real life with forex and gambling (and it's exactly the same tip for trading).
Tell someone you trust totally. A close friend, maybe even a spouse. Or a brother/sister. Tell them exactly everything, I found this helped with another friend. He watched me and I watched him. But you must be open with each other 100%
When you are losing, your emotions can't be controlled. But your friend isn't affected, and he can tell you to stop, or to take a break. And you do the same for him.
You see all these tips are pointless because when you're caught up in emotion, you don't think rationally anymore. So you need help from someone objective. If you tell them "stop me when I lose my deposit". He will stop you because it's not his money and he's not losing.
Here's a real tip that helped me in real life with forex and gambling (and it's exactly the same tip for trading).
Tell someone you trust totally. A close friend, maybe even a spouse. Or a brother/sister. Tell them exactly everything, I found this helped with another friend. He watched me and I watched him. But you must be open with each other 100%
When you are losing, your emotions can't be controlled. But your friend isn't affected, and he can tell you to stop, or to take a break. And you do the same for him.
You see all these tips are pointless because when you're caught up in emotion, you don't think rationally anymore. So you need help from someone objective. If you tell them "stop me when I lose my deposit". He will stop you because it's not his money and he's not losing.
Emotions are hard to control, but in this aspect it is true that anger will lead your nowhere near the goal that you set your eyes on. Actually, even in general, too much investment on our emotions while trading crypto can lead to risky decisions that we may regret in the long run. Essentially, you can't allow yourself to feel too much but also not too little, since instinct can also lead to good decisions at times (like when we say that we have a good feeling about a trading decision). In the end, keeping ourselves and our emotions in check helps a lot in managing our decisions and actions in trading crypto as they are aspects that affects the results that we are looking for.
I have studied risk management and trading psychology in the last few months. But theory and practice turned out to be very different. I theoretically have memorized it and indeed I am quite diligent in reading theories about this. and I also followed some tips from videos on YouTube and from the Telegram channel. but it really doesn't help me in practice. In theory, I understand better. But when I practice directly in trading, I often lose control of my emotions. Then I asked one of the users from this forum and from the same country as me. and he seems quite adept at trading. then he said to me that experience will teach me. And he told me to get more involved in trading with small capital first. and he also said that if we want to be able to control our emotions then we have to know the fundamentals of the coin we are going to trade and we have to know the market situation by making a careful sentimental analysis. so the point is we must have good preparation before entering the trade. then I implemented it in the past few weeks. and the results are pretty good. Yes, I spend more time doing analysis. but it makes me confident with the position I take in the market. so that I can execute my trading plan without hesitation.
It is important to track your losses and profit. Because with that, you're able to distinguish if you're a profitable trader or you just keep on losing.
At the end, you'll still be emotional whether you track it or not because that's what trading is for. Even if you're not going to say that you're not an emotional trader.
That will still push you to look at your progress and the pressure will remain as you do your trades. IMO, it's okay to track those.
At the end, you'll still be emotional whether you track it or not because that's what trading is for. Even if you're not going to say that you're not an emotional trader.
That will still push you to look at your progress and the pressure will remain as you do your trades. IMO, it's okay to track those.
One of the greatest challenges faced in emotional trading is when you as a trader don't have a tested or believed trading strategy that works, when your strategy is not well-backtested with historical data and proven to have about 70%-90% accuracy in results you are going to be toyed around with emotions while trading.
Another point I want to add is not managing risk or overleveraging your account comes with a high level of emotions but when you apply proper risk management that matches your trading account, you trade with less emotion.
Another point I want to add is not managing risk or overleveraging your account comes with a high level of emotions but when you apply proper risk management that matches your trading account, you trade with less emotion.
This wasn't said in there but it doesn't really crack into top 10 to be fair so I can understand why its not there. But do not get into trading when you are already dealing with a problem. It doesn't matter what it is, maybe you heard someone you love got sick, maybe you had a fight with a friend or wife or someone you care about, maybe you just lost in a computer game in an unfair way, yes even that because even the smallest and most unimportant things could matter to your mind, some people won't care about that, and some people would be incredibly mad. This is why its quite important that you do not deal with any baggage when you start trading, if you do then its a problem for you without a doubt.
Well, there are stories I have heard of persons who developed genius abilities at a stressful point in their life. Like, they couldn't handle the emotional trauma, but they could somehow channel the emotion, be it anger, loss, disappointment, to something they have probably been afraid to try or reach a conclusion on.
It is still a good advice though, and it clearly does as much damage, partaking in a trade, without giving a good thought to it.
A good calculative or instinctual decision may just be as skewed, with much similarity to what alcohol does, which is to impair judgement while driving.
Finally, we all got some kind of baggage to deal with upon the break of dawn, but what matters, is what we prioritize and how much focus or attention we accord it.
2. Don’t marry your positions. It’s easy for a trader to get stubborn, and to hold on to a trade just because he ‘hopes’ it will turn around. Close down a bad trade as soon as possible, take your loss and move on. Your trading journal will suggest the next move.
Follow each trade with a break. Trading goes on at a rapid pace, so don’t get caught up in the action. Take a moment to think about something else, and then come back and deliberate. Now look at your trading journal to get the next idea.
Follow each trade with a break. Trading goes on at a rapid pace, so don’t get caught up in the action. Take a moment to think about something else, and then come back and deliberate. Now look at your trading journal to get the next idea.
For me I think this is the main reason why so many individuals lose to the market, they get attached to their investment and they make bad decisions based on how they feel. I was once in this same position as I held my position tight not minding how the market is responding to the negative news that was spreading about the project and now the project is no longer valuable to investors as they have move on to other trending projects.
Don't marry altcoin, just see them as investment and if you're looking for a project you want to fall in love with, it should be Bitcoin that'll make you to be buying it as others who has seen the potential in Bitcoin has been buying. If you fall in love with Bitcoin you won't regret it.
Great post dear OP, but i think point Number 4 is a little bit rusty. As keeping track of accounts is necessary and if you will not track the profits and losses you are making on each of your trades then how can you improve your next trade? Like, i know if the previous trade made you some loss then your sentiments will change for the next trade you will make on the same day. Which will be like covering the loss you have made in the previous trade. But sometimes, your determination to do things make you able to think beyond your knowledge and experience. So, if you just stick to the trade sequence or analysis you have made and started to perform trading one by one and at the end after calculating profit or loss, That would not be helpful.
Other than 4th point, i am agreed with all of your points. You have shared many points but the main sentiments of markets that drove you are only 4 or 5 which i already covered in my topic before.
Which are holding, P&D, FOMO, and FUD. I know many will not agree with my points that's why i have opened all ears to new recommendations.
Other than 4th point, i am agreed with all of your points. You have shared many points but the main sentiments of markets that drove you are only 4 or 5 which i already covered in my topic before.
Which are holding, P&D, FOMO, and FUD. I know many will not agree with my points that's why i have opened all ears to new recommendations.
I think the number one reason why crypto traders lose money, is due to leverage. I think if many just bought spot bitcoin or ethereum and held it for a few months they would make decent money in the long term. The issue is they want to go 100x leverage long or short on a token which is highly volatile like SOL or DOGE and that's how they get rekt very quickly.
They see all over crypto twitter, people posting screenshots of $100K profit day and they get jealous and try to do the same. Only to find out how quickly you can get liquidated if you use high leverage such as 100x, especially on mid cap alt coins.
Same reason why many stock traders don't make money either. Instead of buying and holding the stock. They just buy the options which are short dated and expire within a week. They want the 10-100x gains instead of the slow 1% weekly gains and that how they get liquidated.
They see all over crypto twitter, people posting screenshots of $100K profit day and they get jealous and try to do the same. Only to find out how quickly you can get liquidated if you use high leverage such as 100x, especially on mid cap alt coins.
Same reason why many stock traders don't make money either. Instead of buying and holding the stock. They just buy the options which are short dated and expire within a week. They want the 10-100x gains instead of the slow 1% weekly gains and that how they get liquidated.
Ok, 9 is kinda bs (from how I took it) It's positive reinforcement but let's be real, trading is a zero sum game, THERE will be a loser, and it's something you have to acknowledge all the time, since it means that can be you. Always. There comes a point where you just have to acknowledge imo that this isn't for you, just to cut losses properly, or maybe hire someone who can think for you, which in itself, is actually a skill.
For wanting to be traders and are one, they're good ideas though, but eh they're the general stuff to think about when it comes to important decision making.
For wanting to be traders and are one, they're good ideas though, but eh they're the general stuff to think about when it comes to important decision making.
4. Don’t keep track of profit and loss. Doing the math on your earnings will only get your emotions working. Concentrate on your trading strategy, and review your trading journal to develop it. Then, at the end of the trading day, you can check out how well or poorly you did.
You have to keep track of everything you do in trading or investment.Without records, you will not have data to assess your investment or trading strategies which can not always help you to gain profit. If you feel you are not good at emotion control, don't trade. You should stop trading and change to become an investor.
By investing, you will spend less time to watch charts, read news and you will have less emotional reactions against market news. Always keep tracking your entry, exit prices, results from your investment positions as well as notes about causes of profits and losses if you can.
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