How To Master Your Emotions While Trading Crypto!

Mastering your emotions while investing and trading in the crypto markets is very important for your longevity. 

“To have faith is to trust yourself to the water. When you swim you don't grab hold of the water, because if you do you will sink and drown. Instead you relax, and float.”
― Alan Wilson Watts

 Understanding markets are fluid is key to being able to master your emotions.  If you have zero ability to flip a bearish or bullish bias when the charts dictate, you are destined to be a bag holder or a failure at trading.  

Here are the five important steps in learning to master your emotions. 

1. Healthy body healthy mind
2. Understanding and conquering fear and greed
3. Don't marry your bags
4. Proper risk management
5. Don't give up

Healthy Body...Healthy Mind

This is not only important in trading, but one of the most important things to living a full, healthy and rewarding life. 

Over my 40 years of life, I have been on a roller coaster of physical and mental health.  I have experienced the highest of highs and the lowest of lows.  I have found the ability to bounce back from the lows is directly tied to my physical and mental health.  The stronger my health the more quickly I can recover.

I firmly believe you can not have a healthy mind without a healthy body.  In my opinion the two go hand in hand. During my unhealthy days, the lows were much lower and would last much longer.

Developing a habitual routine has been key for my consistency and success.  My daily routine consists of waking up at 3:15am and taking 30-45 minutes of quiet relaxation and meditation. I start to dive into charts at 3:45-4am and update my private discord channel. I get to the gym at 5am for an hour workout.  I am now ready to attack the day and whatever come up!

Understanding And Conquering Fear & Greed

For most people their investing/trading decisions are based on fear or greed. In the crypto markets these emotions are heavily exaggerated by the volatility swings in the market.  Leaving a lot of people very rich and very broke.

What is greed in the market and how can I overcome it?

Lets first define greed:

• Greed is an intense and selfish desire for something...especially wealth and power!

What does greed look like while trading?  Greed can look like a few things...but most commonly it looks like this:

• Fomo buy a pump on a green candle.
• Create an echo-chamber by surrounding yourself with people who agree.
• Seek out confirmation bias on Crypto Twitter or YouTube.
• Ignore anything that does NOT line up with your narrative

How to avoid Greed:

• Learn all you can and develop a risk management strategy
• Learn all you can about technical analysis
• Pay attention to and chart your emotions
• Be open to counter opinions

What is fear in the market and how can I over come it?

Fear defined:

• Fear is an unpleasant and often strong emotion caused by anticipation or awareness of danger.

What does fear look like white trading crypto?  

• Being afraid to enter a trade because the asset has dumped
• Thinking the asset is going to $0
• Just like greed...creating an echo-chamber by surrounding yourself with people who agree
• Seeking confirmation bias from influencers
• Ignoring or getting angry with anything that counters your personal belief. 

How to avoid fear is the exact same as how to avoid greed:

• Learn all you can and develop a risk management strategy
• Learn all you can about technical analysis
• Pay attention to and chart your emotions
• Be open to counter opinions

Don't Marry Your Bags

I see so many people fall in love with their altcoins.  It almost becomes a cult like following.  People will live or die on their conviction of "this alt is different".

I know this because I have been there and done that.  Back in 2014 I married a shitcoin that ended up being a scam.  I had "Invested" over 50 bitcoins into it.  Unfortunately, by the time I realized it was total bullshit my 50 bitcoins turned into about 5!  Today, that coin is dead and no longer traded.

This story repeats itself fractally in the crypto space.

Use Proper Risk Management

To get my free guide on Risk Management click here!

Risk management is the most important foundational piece to your success in trading and investing in cryptocurrency.  Although it is the most important, it also the most overlooked part.

Once you implement a risk management strategy, it will give you peace of mind!  This will help to calm the fear and greed because you have a plan in place BEFORE you jump into your trading position.  

Don't Give Up

Last but not least.  Don't give up.  Every single trader/investor in the crypto space has a story of epic failure.  Don't let the failure define you.  Take every failure and turn it into a lesson that you learn from.

I have failed so many times in crypto. Failing is just part of trading.  You have to embrace the failure and understand what it was the lead to this failure.  If you can take a lesson out of each failing trade or investment, you have turned that failure into a success.