How's your trading position? Is it still safe from liquidation? Did you set your stop-loss?
As we all know, Crypto Trading became well-known as an income generating activity. There are lots of crypto enthusiast that are now entering into Trading, just like me. I've been in to crypto for a few years but I just started doing Futures Trading a couple of months ago.
It is indeed an income generating, BUT the risk is very high. Higher risk means higher income, with its twin, chance of a higher loss.
In my limited experience with trading, I've seen how my cents turns into dollars, a dollars into two-digit profit and luckily a three-digits.🤑
Yeah, the feeling of euphoria if your position is generating income for you. A successful trade.
Then a turn of events happens. Instead of positive numbers, all you see is red and negative. Ohh, the disappointment, the regrets. 🤦♂️
As what I shared on my previous post about my experience with Futures Trading, I had losses. A very big loss that I almost discouraged to try this trading. The feeling that I questioned myself, Does Trading is for me?
I did a lot of mistakes on that time I lost my trades. I re-enter without thinking because I feel that I can catch that loss again. I also did enter a very high leverage with all my remaining funds and then hoping that the candles will be favorable for me. AHAHA the dark era of my trading experience.
Stress and Sadness, the feeling of failure after failure after failure...
How to deal with it?
Pause: First is pause for a minute or two, this doesn't mean giving up BUT a way to have a rest, reflect on what really happens and have a clearer mind. In my case, I paused for a few days, just to recover my emotions with the failure. Pausing for a while also give us time to think clearly, subside the peak of sadness and time to do the next actions.
Divert: You may be over stressed with trading. Don't force your self to trade because you want to earn. Try to divert with other things and come back to trading once you feel that you're refreshed. I personally divert myself from the thoughts of trading and with failure by going back to my hobby like playing a guitar or just listening to music in my phone. How about you?
Plan: Re-strategize your trade. Planning is very essential aspect in our daily life, applying it to trading can be a great game-changer. Try to plan on how you enter and exit a position, plan your risk management process, and plan your funds allocation.
In my case, I allocate my remaining funds to Spot trade, Futures and Savings. With this not all my assets are on the same bag, I also planned for next move if ever I failed again.
Stay Calm: A very important thing is to stay calm. A hard feelings and clouded minds is very crucial while trading, You might end up deciding without thinking or analyzing. Emotion is very vital when it comes to decision making. Don't let negative emotions eat you. Take a deep breath!
Don't overthink: Over thinking can be a worse enemy. If you experienced consecutive losses, you tend to overthink that the next might be a loss again, or think that you can win the next position so you just open lots of entry. That's a bad idea, Try to think rationally as possible. Read the chart carefully.
Back to basics: To gain your confidence again after a loss, you may be need to refresh your knowledge or update yourself for a new strategy. You can also try a few demo trade to check if you're ready to trade again. Re-learn what you have learned from the start, that helped me a lot every time I got lost.
CONCLUSION
In every trade, Loss is always present, the most important thing is to know how to handle each loss. Emotional status may have a great effects in decision making of an individual. It's ok to be upset if you have a failure trade, But you should learn how to cope with it. Try to establish a good trading habits. Be armed with lots of knowledge, especially the basics. And of course, aside from having a goal, enjoy each ride while attaining that goal.
The information provided here are all based on my experiences. You may or may not apply this to your self, as every individual has their different coping mechanisms. Try to find yours, this article might be a guide to establish your own. 😉
Hopefully this could help some of newbie traders like me to deal with their losing trades.
Everyday is an opportunity to learn new things, make the most out of it and enjoy. - p1sce5
Stay Calm and Trade Safely!!
Lead image is created by me using PixelLab / emoji from searchpng.com
At binasa ko na sya 💔💔, napapanahon sa malamig na panahon lol. Will keep this in mind..