Getting too emotional while trading crypto - page 5.

AicecreaME

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Quote from: WickCrypto on September 24, 2019, 12:51:38 PM

I always feel that it's very intense to trade. I have been trading crypto for two years now, but find it's still difficult to get used to all the constant price fluctuation.

I decided to write an article about this topic, including solutions to make sure your trading becomes more rational: https://steemit.com/cryptocurrency/@wickcrypto/an-emotional-guide-to-crypto-trading-why-paper-trading-is-useless

For example, using some simple tricks you can remove a lot of the emotion out of your trading. I trick that helped a lot was as simple as changing your color scheme in Tradingview. I don't think I am allowed yet to post pics on this forum, but you can check it out the big difference here:

What do you think? Do you have some more tricks you use against these emotions?

Also, it was the first post I made on Steemit so far, I'm very open to hear any feedback about it!

Getting emotional after some losses in Trading is normal, but getting too emotional is not, because it will affect your whole performance when you are trading, you will just experience more losses if you are not going to embrace your failures in life. It is important to know that we can't always make profits in Trading, we can't assume accurate results, everything is unpredictable, but we always have to recuperate our losses by not giving up.

We need to encourage ourselves to finish what we started, failing doesn't mean you are not good enough, failing means you are trying until you became a better person in Trading.

Viscore

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Quote from: Best Dreams on September 27, 2019, 04:48:54 PM

Quote from: cryptoknightt on September 26, 2019, 08:33:36 AM

for advice, trading should be able to implement trading that is very relaxed, you trade at least have to do long-term trading because if you trade always use emotions then you will find it hard to get profit, indeed the most difficult is to control the emotions you have.

Yes you will have to control your emotions in trading as a good trader knows how to handle himself in even a worst situations but those who are not having any control over their emotions so they will suffer lose after wards. We only should know if the market is dumping so we can simply hold and wait but if market is getting green we can sell it to trade profitable.

It's a natural thing that our emotions will really react to the things or decisions we do in life especially if money is directly involved. But with crypto trading, it's very important that a trader should be able to control his emotions and if he can do that, there will be high chances that he will trade successfully and make good profits after trading.

ChrisPop

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Not your Keys, Not your Bitcoins

Very useful article @WickCrypto! The thing that most people who undertake the trading endeavour don't understand is that managing emotions is a core factor of being a consistently profitable trader. Technical analysis and risk management are the other two factors of the equation and if you manage to get these three right you CAN be successful!

I recommend reading psychological books. They are really helpful to understand the thinking processes you go through while trading and not only Wink

Oilacris

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Quote from: illnino on September 26, 2019, 02:27:09 PM

Quote from: Not_A_Rocket_Scientist on September 24, 2019, 01:27:59 PM

I have switched to crypto bot trading and just monitoring the process and make some adjustments from time to time. I think nowadays it is impossible to daytrade manually and stay good-tempered.

Surely, the bot will be a great help here, but you should not always rely on them. Day trading is always a stress, so, probably, it is better to change the strategy and get involved in holding, choosing the most promising cryptos. However, even here, the stress cannot be avoided, especially when you get up in the morning and see that your tokens and BTC lost at least 15% of their price.

When it comes to level of stress then I would say day trading would really have much more yet you are engage on an active state of buy and sell on minimal margins unlike on having a simple hold for future gains without stressing too much on trading activity.

Yes,stress cant be avoided that's why you should know how to handle up your emotions and discipline out carefully on every actions you made because
one false move it would surely cost you.

Best Dreams

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Quote from: cryptoknightt on September 26, 2019, 08:33:36 AM

for advice, trading should be able to implement trading that is very relaxed, you trade at least have to do long-term trading because if you trade always use emotions then you will find it hard to get profit, indeed the most difficult is to control the emotions you have.

Yes you will have to control your emotions in trading as a good trader knows how to handle himself in even a worst situations but those who are not having any control over their emotions so they will suffer lose after wards. We only should know if the market is dumping so we can simply hold and wait but if market is getting green we can sell it to trade profitable.

WickCrypto

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Quote from: gunungkembar on September 25, 2019, 07:51:18 AM

when you trade in the world of cryptocurrency and you get very high emotions and cannot control your patience then you will only get a loss because surely you will easily be affected by the bad news that exists and do not have high confidence.

Well this is a good point. There is a lot of FUD in the crypto world, and this is inherent to the way the process is designed. Exchanged only list new coins once they reach a certain volume, coins with no trading volume are not interesting for exchanges as they earn money on matchmaking traders. As a new crypto company, you are likely to get a big boost in the value and worth of your coin if you get listed on an exchange.

So what do they do? You guessed it.. They provide a lot of fake news. First they convince you massive great updates have happened, everybody buys. Then they convince you it was all fake, and that it's complete shit, everybody sells. And repeat. This fake news causes people to buy and sell their coins, therefore driving up the trade volume and increasing the likelihood of getting listed.

I think there are three logical steps.

First, you will get screwed over. You buy the news, and sell the dip. Welcome to crypto.
Second, you will start to understand how FUD works and try not to get screwed over by it anymore
THIRD! You understand it soooo well, that you can actually use it to your advantage! You sell / short when it's at the top, or buy / long when it's at rock bottom. This is when trading starts to become very interesting.

illnino

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Quote from: Not_A_Rocket_Scientist on September 24, 2019, 01:27:59 PM

I have switched to crypto bot trading and just monitoring the process and make some adjustments from time to time. I think nowadays it is impossible to daytrade manually and stay good-tempered.

Surely, the bot will be a great help here, but you should not always rely on them. Day trading is always a stress, so, probably, it is better to change the strategy and get involved in holding, choosing the most promising cryptos. However, even here, the stress cannot be avoided, especially when you get up in the morning and see that your tokens and BTC lost at least 15% of their price.

Fredomago

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Quote from: Babyrica0226 on September 26, 2019, 08:31:45 AM

Our emotion was already part of being an individual traders in any of the exchange platform.
We should only use our emotion in the right way when we do the actual trade. Because if we become emotional
when the price dump quickly for sure it wouldn't help us to recover our losses.

Emotions will keep us away from deciding the right track to follow, you need to have a better understanding from each position that you will take, the moment you allowed your emotions to undergo the next thing you will noticed is losing your investment, there's always the right place in each moment that you need to follow. Make sure to gather every information that you needed before starting your investment plan inside this market.

jamesndungu1

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As a trader, you will experience many emotions. You will be nervous that you will make mistakes while under the extreme pressure of probable huge losses — the fear of being in a trade that does not fit your trading plan. Now the emotion you are supposed to feed off is that of excitement. If you lack conviction then you are probably in the wrong trade, well according to your trading plan. You never want to find yourself getting greedy in trade. This always ends up in your trading using all the wrong mechanics, and you end up making unimaginable losses instead.

cryptoknightt

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for advice, trading should be able to implement trading that is very relaxed, you trade at least have to do long-term trading because if you trade always use emotions then you will find it hard to get profit, indeed the most difficult is to control the emotions you have.

Babyrica0226

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Our emotion was already part of being an individual traders in any of the exchange platform.
We should only use our emotion in the right way when we do the actual trade. Because if we become emotional
when the price dump quickly for sure it wouldn't help us to recover our losses.

gantez

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I think if we take away the feeling of making too much profit in a trade, it can help our emotions better. The anxiety most of the time is because we are losing heavily. If profit is taking out from our head, the whole thing becomes like gaming and fun. It will look like demo trading in our eyes while we keep riding on our strategy.

ethereumhunter

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Relax is the best solution to reduce the emotion while trading crypto, and you will find that it is better to leave the market for a while. You can do anything you want to release the tension in your head and your feeling. If you can go to sleep, then it will better because your body needs to get rest so after you wake up, you will feel fresh and you can continue to trade. But before you get rest, you need to close everything related to trading so you will not get a negative result when you wake up.

Best Dreams

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Quote from: gunungkembar on September 25, 2019, 07:51:18 AM

when you trade in the world of cryptocurrency and you get very high emotions and cannot control your patience then you will only get a loss because surely you will easily be affected by the bad news that exists and do not have high confidence.

Its much better to avoid bad news than to become emotional and lose your money. One should have enough knowledge to understand the situation of the market. Just invest when feel price is affordable and little risk of lose will exist around better make yourself strong investor so no bad news would effect your determinations.

WickCrypto

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Quote from: Mpamaegbu on September 25, 2019, 04:19:33 PM

Colours really mean nothing in platforms, just like age is in a genuine live relationship. I dare say that the black and white colours on the candlesticks are by default. Although other colours (which can be twerked) hold more fascination than that of the default setting. In the same light, I think the easiest way of getting a firm grip on trading is to control one's emotions.

I have worked for a large corporation (In the top 5 largest eCommerce company in the world) and one of the biggest changes they made was internally to move all conditional Excel formatting from standard red (low) -> green (high) to shades of blue. This made a major difference. If you apply conditional formatting on a column with 10 numbers, one will always have the bright red (reads fear, panic, disaster) and one bright green (reads optimism, high performance). However... maybe all 10 of them should've been green and they're all good numbers.

This little anecdote applies here as well, humans have an immediate interpretation of colors. If you see a 3% candle stick, bright red, staring you in the face - naturally you will feel a slight panic. Black and white candlesticks can help you to look at the bigger picture and see that it's still far from a support zone for instance.

Mpamaegbu

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Colours really mean nothing in platforms, just like age is in a genuine live relationship. I dare say that the black and white colours on the candlesticks are by default. Although other colours (which can be twerked) hold more fascination than that of the default setting. In the same light, I think the easiest way of getting a firm grip on trading is to control one's emotions.

Ucy

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My own simple trick is to buy whenever there is a major dip and sell when the market recovers from the dip. If the price continues to dip, you keep buying. If the market continues to go up, you keep selling off some of what you accumulated in previous dips.
You should always have some funds reserved in stablecoin for buying up the important dips.

davinchi

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Quote from: Not_A_Rocket_Scientist on September 24, 2019, 01:27:59 PM

I have switched to crypto bot trading and just monitoring the process and make some adjustments from time to time. I think nowadays it is impossible to daytrade manually and stay good-tempered.

Lol, I am so ashamed of myself to confess to you that I am now a bot fan also because of the way I have been attacking Bot services but I never knew that bot could be so wonderful, I hated Bot because of the last experience that I had with the one I used for my Forex trading, that bot really messed me up so bad, but I was told that the company I bought the bot from was a scam company which is why I fell a victim of them, and since then, I never wanted to hear the word BOT again.

I have all been against any bot discussion, but will all these price fluctuations that have been making it difficult to trade, I ended up listening to my friend to try one which I did and it eventually worked perfectly fine. It is really stressful to trade manually this period, although we still cannot completely rely on Bot but I think they deserve to be given a chance to prove their worth especially the one by a good company.

beerlover

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On days like these we are all too emotional with our trades, I wouldn't really know what to do with myself on these days if I was new here and I still don't know what to do but just wait even after 7 years of bitcoin. I guess it is just a personal trait, some people are more calm than others and some people are just more emotional and indecisive. It is not just crypto for me though, I am excited and scared and hyped about everything all at the same time which is a bit emotionally draining but at the same time it is giving life a color.

If you can afford the trades then you can just keep trading them the way you want without worrying about what will happen and just have fun because turning it into some machine like deal may end up making you more profits but your life will be miserable.

glendall

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being emotional when trading is a sign that we don't have good planning,
A professional trading always has more than 5 plans with many possibilities, and because crypto is very volatile, I think 10 plans are really needed,
such as make SO and BO more than 3 layers, installing alarms, anticipating the market going down and up. etc.
understand this and our emotions will be controlled.

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