Frustration abounds in the crypto markets through swings in price, the noise and hype of the “next best thing,” and other triggers that frankly just stress you out. Then there is the opposite end of the spectrum where you might be annoyed or simply fed up. FRUSTRATION. It’s a real thing that can adversely affect how you’re trading and sink your portfolio.
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Have you ever felt uninspired or bored and just didn’t know what to do with yourself? Most of us have. Unfortunately, when we’ve reached this point, we tend to do the wrong thing. It’s like rooting around in the pantry looking for a snack, not because you’re hungry but rather because you’re stressed out or bored, or diverting your brain to think about something other than an issue. This happens in trading too. You go rooting around for shitcoins to trade because you’ve been triggered by something and want to divert your attention.
Okay. Let’s go over some of these triggers and prevent them from happening in the future.
The Losing Streak
There will be times when it feels like nothing you do is right. You try to make lemonade from those lemons that are being thrown your way, but there’s nothing sweet coming from it. Talk about frustration!
When it comes to trading, you will have a run of bad trades and losing streaks. It happens to all of us. Every trader inevitably loses money on the wrong investment. While there is no absolute cure for the losing streak, there are ways to soften the blow and lower your frustration and stress level.
The first step is to stop trading and reassess. Just like “fat-fingered” mistakes happen, so does reading charts incorrectly. If you stop the failing trades then, at the very least, you’re not losing money anymore. Take a deep, soothing breath and give your brain a break. When you feel like you can focus without animosity, look over your analysis, zoom in (or out) of your chart view for a broader scope of the trading scenario, and try again.
As for taking some time off; that really depends on how fast you can rebound from disappointment. Some people need to walk it off. Some people need to take a day or two. As long as you haven’t lost your principal balance, your stopped trades won’t make any money, but you won’t be losing it either.
You know what’s really frustrating? Those gotcha! moments when something takes you completely by surprise. In trading, this could be an asset that you’ve been studying and your bones are telling you to take action but the market indicators aren’t quite up to your predictions – and then BAM! It takes off and you’re feeling a little stupid.
This is annoying and very discouraging to a lot of traders. So, how to overcome this point of frustration?
There are two approaches to look at the problem and handle this.
The first thing to consider is if you missed the big trade then your intuition wasn’t wrong, your timing was. Make sure to jot that in your trading journal and take note of the outlying things that made you think the trade was good. Mark where you missed the opportunity, but keep tracking the asset. Is it falling within the range that you anticipated it would? Now look at the history in your trading journal. Do you see a pattern of missed opportunities? If so, then the frustration may be of your own making.
Ask yourself, am I being too careful. Are my settings too tight that I’m missing these opportunities? Knowing your habits is half the battle against the frustrations of trading.
Quiet markets can lead to a lot of frustration and boredom. It puts us on the hurry up and wait side of trading. Most day traders love volatility because it’s fast-paced and opportunities abound for those who are diligently watching for trade opportunities.
Volatility fuels the racing heart, doesn’t it? So, when the markets are slow and quiet, boredom kicks in. With boredom often comes bad behaviors because your attention migrates elsewhere. Maybe you start looking for news, listen to the shillers on social media, and looking for monster movers where there aren’t any. When this happens, you’re really looking for an excuse to get into trouble.
Slow market days happen. It’s okay!
Don’t get frustrated about the lack of volatility, but rather recognize that you have no control over the market conditions. Stay positive. Maybe do more in-depth research into the next asset you’ve wanted to add to your portfolio.
As an old friend used to tell me, “If you can lean, you can clean.” Translation, there is absolutely no reason to be bored because there is always something you can do.
These moments are probably the most frustrating of all. They are those “DOH” moments when a mistake easily could have been avoided but you forged ahead anyway; sometimes those moments are a signal from the universe that keeps you humble.
There are times when we push the boundaries of what we’re doing with the full knowledge that there’s a 50/50 chance it will work or blow up in our face. The lure of a trade that’s had you on the fence for a while could be too tempting even if your intuition is saying, “Not yet.” But the impatient kid within wants it now and you give in. If your intuition was right, then congratulations. More often then not, you’re probably kicking yourself because you knew better.
Listen… Expanding your boundaries for wider trade margins or stop-loss gaps is fine if you are well aware of the consequences and act in a reasonable, measured way. Add it to your trading strategy and plan out what you want to do and what you hope to accomplish.
This helps alleviate the frustrations of diving in without a life jacket. Don’t try to win the Darwin award of crypto trading. Sure, mistakes happen, but if you find that you’re having too many “DOH” moments and not enough wins, it’s time to re-evaluate what you’re doing and lower your stress level. Frustration often leads to rage trading and other poor habits. Don’t allow yourself to live in that negative space.
Crypto trading may tend to be more frustrating than traditional trading because, by it’s nature, crypto trading is often more volatile within shorter time spans. Oftentimes we are the root of our frustration, whether we want to admit it or not.
In reality, frustration comes from the fantasy of success and the reality of falling short of that goal. Mindset, strategy, a proper exit plan, a proper break can all help alleviate the consequences of our mistakes.
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