Bitcoin Trading: 7 tips to disconnect your emotions from your portfolio
Bitcoin Trading: 7 tips to disconnect your emotions from your portfolio – Did you know that you could compromise your chances of making good trades by becoming emotional and impulsive? While we are all guided by our emotions in everything we do, the worst blunder Bitcoin traders can make is to let emotions get the better of them. It is the fear of missing out on lucrative trade opportunities and the greed to make more money that makes them take faulty trade-related decisions. To trade smartly, you must practice emotional discipline; it is not enough to be intelligent or well-informed.
7 tips to keep your emotions aside when you trade cryptocurrencies:
You must have heard of revenge trading, overtrading, chasing the market, blowing up crypto accounts, taking premature profits, or missing trades. These are all common things that traders go through and mistakes they end up making because they let their emotions get the better of them.
- One of the first things that you must do to execute good trades is recognize fear versus greed. Both these emotions can wreak havoc in your trading career if you are not cautious. The fear of missing out on trades makes traders nervous and edgy and they try to compensate by trading in bigger volumes. This automatically magnifies the outcome of a poor decision. It is fear that often makes you sell off your assets prematurely or hold onto them for too long in the hope that things will change. If you are excessively greedy you start chasing the market. Greed may make you buy more when the market is overbought already and demands are going down.
- You must have a trading plan in place to avoid losing money. Not only should you have criteria for entering trades and exiting these, you must be prepared to follow the plan. You must implement take-profit and stop-loss orders to avoid losing everything you invested. These should not be tweaked while trades are ongoing. You need to stay patient and understand that when you enter into mediocre trades, the results will not be exceptional.
- You have to start crypto trading like a full-time career or business for which you need a plan that must be continuously adjusted and updated. There must be rules to take profits once your expenses and bills have been covered. So, set weekly goals and keep yourself well-informed with the latest crypto news to take smart decisions. The automated crypto trading bots like Bitcoin up let you trade 24/7 without any manual intervention. This is going to save the traders a lot of time.
- The trick to trading successfully is to stop watching the scoreboard all the time. If you keep checking your trade status, you will probably become apprehensive and this impatience will cause to make a hasty and faulty decision.
- Timing is everything and staying away when market conditions are not favorable is the right thing to do. You must trade only when you are ready for it, not because others are. The market conditions should not force you to trade. And you should never trade just to feel better.
- Trading with the right volumes is important to get results. When you trade with a lot, you may end up losing a lot as well. So, start with smaller investments that do not give you sleepless nights.
- You can trade better when you continue with your other activities like spending time with loved ones, socializing, working out, and eating well. You must assign specific hours for trading and stay away from the screen at other times.
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