Controlling your emotions when trading Bitcoin can be challenging due to this virtual asset’s volatile nature. Here’s a guide on how to manage feelings when trading Bitcoin.
Create a Plan and Stick to It
If you decide to start trading this digital asset, first establish why you found selling it exciting and what you wish to do with it; what are the risks and rewards of dealing with it, and what you can stand to lose? Once you have established the various losses and gains, you are less likely to act on emotion impulsively.
You could try to plan your advance, create your entry and exit points, and ignore the charts waiting for any outcome.
View Losses as an Opportunity to Learn
Every loss you incur can teach you something about trading. However, reframe the failure and do not allow it to trigger anger, despair, or self –flagellation. Instead, let it be a trigger for learning. You will get quite unlucky, but you will need to focus on the long-term instead.
On the other hand, if you made the wrong decision when trading, try to figure out what led you to that wrong decision.
it is best to step away from your phone, laptop, charts, and crypto Twitter. Taking breaks is necessary for balance and staying sane.
Create a Demo Account
A demo account is for training purposes because you can’t kick start trading without doing your research and practice. A demo account is an excellent place to sharpen your skills. It lets you pretend to trade and somehow gives you some pretending dollars, for instance, 100,000, to play with around. Once you have mastered how to set buys and sells, stop losses and see how you do with zero risk, you are good to go. Setting up a demo account and practicing different strategies will boost your confidence, especially when ready for the big league. You can start trading on platforms such as Bitcoin Buyer when confident in your skills.
Create a Trading Plan
People develop trading plans that work for them, and while methods differ, they do have basics in common. For instance, some know how much of their portfolio they are willing to use. They also stay up-to-date with the news on global economic events and project announcement levels. You will also see traders’ setups with multiple screens comprised of trading view charts and news channels or websites.
People must create trading plans over the weekends for the upcoming week based on any news, events, or rumors you might have heard. Later on, execute your plan without deviation.
Practice Time Management
Good time management skills are a vital feature for every trader. They should allocate each hour they have for different priorities. For instance, if it is time to trade, they should do that exactly and not obsess about another activity. Establishing priorities helps traders manage their time.
Understand that Bitcoin Obsession Will Never End
Even the most well-balanced and seasoned traders still resist compulsive price-checking impulses. It is difficult to predict when this digital asset will strap traders into the roller coaster.
Set Aside Sometime for Content Creation
Bitcoin trading and investing for many is more than just a source of amercing wealth. It is also about understanding the technology behind this digital asset, the philosophy, and the constant changes to this digital money. That can be a lot to keep up with, and rather than getting distracted by every tweet and Bitcoin article, which can add anxiety, focus on reading some original content.
If you choose to apply any of the listed tips above, you will quickly deal with your emotions when trading this digital asset. In the end, you won’t get carried away easily.