4 steps to get rid of emotions when trading
Emotions are the bane of mankind’s business existence. They force us to act out and invariably make moves that we tend to regret in the long run. To that effect, the cryptocurrency market is a very emotional place. Because one minute you’re doing well, with the market price rising up in value and your assets are two, three, four times its initial value and the next minute you are not.
When coins and crypto assets take huge hits people tend to add to the already volatile situation by selling and putting the asset further down because they are scared that they are going to lose all their money.
But just as emotional as the cryptocurrency market and community can be at time it is governed by patterns and underlying logic which, though may seem haphazard and impulsive, can be predicted and judged. It is simple logic and research and that is the only thing that can make someone put aside their personal feelings and fears and enable them to make logically sound decisions that will not only help them, but the market they are in too.
Here are four things you could add to your everyday; before starting your daily trading routine, in order to make sure that you are not making hasty decisions.
1. Read Up
The cryptocurrency market is probably one of the fastest moving markets. Things change on almost an hourly basis and you’re only human. So you are going to miss some major happenings. In order to get ahead of what has been happening and what you may have missed, before starting your daily trading routine, read up. Read all about all the developments, consider the market predictions of the day and then decide what you and how you want to go about your trades.
2. Write it Down
Once you’ve read all about the happenings of the market and community, you should have a pretty good idea as to what you want or need to do. Write it down. Chalk out a plan of your daily trades as a list of things you need to do.
3. Check it Off
Once you’ve made a list of things to do, tick them off as and when you complete each task. By doing this, you not only have a clear picture of what you’ve done until now, but you can also record the steps for future trades and actions on your assets.
4. Take a Break
Once you start your daily trading routine, it is very easy to get lost in the heat of things. You may find yourself making trades and sales that you are better off without. In order to curb your chances of making a trade on an impulse, take a break. Take a break every once in a while and think before you make a trade, consider all of your options before making it.
Also, read: Top 6 Crypto Trading Strategies