Topic: Do you trade based off emotions? (Read 3770 times)

Agree to your best points in your reply. Experienced traders know when to take controlled losses and find alternative uses of capital to profit. There are so many trading pairs in cryptos there is always a better trade if you look hard enough.


The art is to treat each trade a separate decision. Make decisions based on market conditions and not on losses you suffered (or profits) and how much you hold.

Having said that, we are not machines and we are not able to just turn the emotions off and trade purely based on some cold analysis.
The trick is to listen to your emotions and always be aware of them, but do not allow yourself to be overtaken by them.

For example, after suffering a loss, whether it is in the markets or in the casino, the first emotion people experience is to get into another trade / bet in order to make back what they have just lost.
This is most likely the worst reason to get into a trade and will probably result in another loss.
It would have been better to recognise what is driving you, force yourself to take a break and come back to trading once you are thinking calmly again.

Yes I do, 1-3 times maybe, but this happened few months before.
After that i realized how much have i lost in trading after few days of that trade but it was too late.

I too believe that holding is the safest option, but you gotta admit that trading, and selling at +50 to 70 % in weak terms usually brings nice profits,
which yields you far more bitcoins than just holding and waiting for something that won't happen for years to come. (but it eventually will, i agree)
imho smart emotionless trades are way better than holding forever or trading on the emotions.

cheers

For now I am just going to hold my bitcoins, but when I trade I just listen to my gut.
The most of time is fine. But trading with emotions is some time not good you will lose money.
In other side some times is good to trade with you emotions.

I don't think I have, whenever I'm hesitating I just hold. I think that's  the best thing to do. Don't panic and if you do don't sell/trade.
Holding at that point would be the best, at least for bitcoins it is.

For some reason, almost everyone that owns bitcoin thinks they have an instinct helping them sell at the right time. That's how markets work, some get burned, others stay away fromt rading all together. Funnily enough, with bitcoin, selling some coins when a significant rise is ongoing is perceived as a sin by hodlers. It feels like bitcoin's community works like a cult sometimes.

I'm not trading anymore I tend to get emotionally involved too much and that is not good because in the end we're always talking money, aren't we?
So I hold tight and wait to see what happens. That's pretty much it.

I must say yes to this I am not (yet, maybe one day) an experienced & skilled trader and I only know the basic rule : "buy low, sell high" so right now I based on emotions and insticts when I will sell I know its a noob move, but its only temporarily. I will try learning to read charts in my free time.

I'm a strict hodler,  I a actually called the top correctly on the last pump but didn't want to sell just incase.  For me holding is the safest option.

So, you sell when the price is high and looking strong and buy when it's dumping hard based off emotions? what sort of emotions are you feeling in these moments? because normal human reaction is to do the opposite.

Not yet in bitcoins, but I've definitely traded stocks with emotion and it always ended badly.  Not sure how one is supposed to completely trade rationally with btc, as it doesn't lend itself to traditional analysis and doesn't pay dividends or interest.  For now I'm just going to try to avoid panicking and to avoid euphoria.

Yes, all the time. I trust myself more than anyone else.

I have traded based off emotions quite a few times, just because I really do not have that much info or the ability to interpret it correctly. So you just think "it will go down from here" or "it will go up from here" and trade.

Of course, having in mind I can be mistaken and establishing a "B" plan (buying more or not if it goes lower, holding or selling if it goes higher etc.)

Amen to that, this comment is correct in many ways, nice advice dude I will keep this in mind like you said traders should not be stubborn or too proud and being wrong is one point for a man to grow, loses in trading then stay up and don't quit their is a next time that you could try and trade again

some advice for the bitcoin traders here:

Dealing with losses
A trader needs the self-discipline to stick to his plan and not be overtaken by the emotions of greed and fear.
When the trader expects the market to behave certain way, enters the trade and the market doesn’t perform as expected, the only correct course of action is the exit the trade.
Having to take losses is an integral part of trading – what matters is taking them early and not letting them to run away.
The trader cannot be stubborn or too proud – being right can never be more important to him than being profitable. Being a trader means being honest with oneself and being able to admit to being wrong.
Unlike in most of “ordinary” professions, in trading, there usually is not much grey area between being wrong and being right and little opportunity to blame the bad decisions on external factors – even though it’s tempting to look for excuses, the trader should always take full responsibility for all his decisions.
The trader has to remember that the market is always right, even if it’s behaving irrationally from his point of view – “markets can remain irrational longer than you can remain solvent”.
Staying in a losing position, apart from everything else, carries an opportunity cost – instead of hanging on to a bad trade, the trader could possibly use his skills and capital to generate profits from another trade.
The trader needs to learn to recognize the emotions he feels when he incurs the losses: they may range from self-pity to anger. When the trader is experiencing these emotions, his critical thinking is usually impaired and he might be not best placed to enter into another trade, even though this is often what his emotions are telling him to do (“revenge trading”). That is when taking a break usually is helpful and beneficial to the further performance of the trader.
No person is ever going to be able to completely eliminate emotions – one should be aware of them and learn to use them to his advantage.

Very often the good risk management skills are more important than the ability to predict the price of bitcoin.

You are never going to be right 100% of the time - the trick is being able to admit to yourself that you were wrong and get out of the position.
For many people being proven right is more important than making money, so they stick in the losing position for too long, until it becomes too painful to continue anymore.

Accepting that you were wrong is actually very hard thing to do.
If you want to be a good trader, you have to swallow your pride.

I also don't consider myself as a good trader,
Because we can't predict the price of a coin.
I just check the alt coin market and the rate change immediately when the bitcoin price increases.

Being a noob trader, i used to buy few altcoins that i feel it will be a success but at the end i just sell it under the half of its price.
In the other hand I saw few altcoins that made a short success and could make *3 -  *4 and didn't bought it thinking it will fails like the other failcoins.
So yeah emotion couldn't fit with trading.... at all.

Well, I traded with emotion in the past. I managed to blow 90% of my investment in 48 hours, a quite impressive score to say the least ... ! Luckily my investment was only $20.

I do not consider myself a good trader so I refrain from it almost completely.