Is It Even Possible To Invest In Cryptocurrency Without Emotion?
Tired of taking losses on the chin? One of the biggest causes of panic and losses in cryptocurrency revolves around the lack of emotional control. Sorry but that’s the truth. Wearing the shirt that you HODL bro or giving that advice to others is easier when you’re in the green. It is usually a different story when coins are dumping and blood is in the streets after a violent swing in the cryptocurrency market. That my friend is a true test of one’s fortitude to stay out of it emotionally. Especially after the gut check and repeated punches in the face the market gives you. All it takes is one good jab at your account to play with your emotions. Once that happens you likely do 1 of 3 things.
1. You freak the hell out and dump the coin at the bottom of the dump (Most Likely True / Biggest Losses)
2. Immediately you begin to look for ways to desensitize yourself (Let’s drink because the punches won’t hurt so bad)
3. Develop strategies to lessen the damages taken (Ah we have a quick learner here!)
I have found that to trade without emotion requires intense self-control. Plus a strong discipline to stick to your trading plan. I am not perfect (nor claim to be) and you will likely suck at the very beginning too. However, it’s a skill that you must flex and work out. Else the losses taken on your account can eat your shirt off your back and even completely wipe you out.
Here are 5 ways that I have found extremely helpful to be able to invest in cryptocurrency without emotion.
1. Always Follow Your Trading Plan & Learn The Power of NO
Investing in cryptocurrency without emotion begins with having a detailed PLAN. If you have no set of rules on how you place trades and how you handle certain scenarios then it is likely that the winds of change in the cryptoverse will beat your account to extinction or worse leave you in a pile of debt. Decide today that if you do not have a plan, that you will make one.
Learn How To Create A Trading Plan
Never Chase Candles
As tempting as it is, it’s NEVER a good idea to jump into a mooning cryptocurrency. All too often by the time you see it, the coin is already topping out and thereby leaving you with the bags to hold. That means another loss. Sure there are extenuating circumstances but in my opinion, you will lose more often than you will win from the move. Once again this goes back to your trading plan and what you feel is a suitable risk for you.
Quit Selling Yourself On The What If
Selling yourself on a specific outcome is financial suicide to your investment account. Work from the frame of logic and as much factual information as possible. Nothing is certain and fantasizing price movements or having the lofty expectations that a coin will moon is setting you up for heartache. Plan a way to get out if you were wrong and then analyze how you can handle it better next time. Ask yourself, “What could have been done differently that would have brought about a better result?” Remember pro athletes watch game film to improve their game and there is no reason you cannot watch your own film to see where the mistakes are and work to fix them as well.
Don’t Keep Checking Charts
There is nothing worse than doubting yourself. This goes for buying into a coin or selling out of a coin. If you find yourself constantly checking the charts to see the price movement in the market and getting impatient, you have a problem. GO FOR A WALK! You’re effectively telling yourself that you do not trust your moves. Make a plan, set up your exit, and then stick to your game plan. The more confidence you have in your trades the easier it is to handle the waves of volatility that the crypto markets offer. Once you have been through a few trades look at what has worked for you and what hasn’t, then adjust what is necessary.
Stick To Your Decision and Reward Yourself For Following Through
If you have a bad habit and want to kick it, you must link pain and negative consequences to it. At the same time when you follow through on your plan, you must reward those behaviors as well. Behaviors that are rewarded are reinforced. Go out for a small ice cream, go play a round of golf, or buy yourself a small gift. That gesture to yourself can go a long way. It’s helping you strengthen your resolve and to follow through on the plan that you have.
What are some other ways that you have personally used to invest in cryptocurrency without emotion?
I would love to hear about them in your comments below!
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. The information contained herein is obtained from sources believed to be reliable and from personal experience, but its accuracy cannot be guaranteed. WhyNotCrypto.com does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred. As always, trade at your own risk, do your research, and never invest more than you can afford to lose.