The Bitter Truth – Why Traders Need to be Brutally Honest with Themselves

Posted on by

 

You can't handle the truth

Time to get down to the nitty gritty and get honest with your altcoin trading. The saying the truth can hurt is true, and even more-so when it’s about yourself. It’s easy to bury down the truth on why you’re failing at making your altcoin portfolio green and try to soften the blow by sugar coating reality and blaming it on a bad call someone else made or that the market just isn’t doing good. This easy sugar coating also makes it easy to repeat the same mistake over and over again.

London Close Trade Strategy with Vic Noble and Shirley Hudson

In steps the dreaded trading journal. But not just a journal of your trades that you’ve done, this journal also has your trading mistakes, the why and how of your failings. At the end of the day sit and reflect on your trading or even reflect on a trade by trade basis. Make some mistake and are smacking yourself in the head over it? Write down why you did what you did. Your day was terrible with loss after loss, then write down why. Be truthful, bitterly truthful and you will have to be brutal on yourself. This is the only way you’re going to stop repeating mistakes.  Or Did you have a good day? Write down what made your trades good, did you follow your trading strategy to the T or maybe you implemented a new indicator into your trading strategy.

This way in addition to keeping track of your mistakes you can keep track of your winning moves. Being truthful with your trading and with yourself will help step up your game and also help you identify your weaknesses and hopefully be able to sidestep them in the future.


Need some examples of how to kick yourself when you’re down?  Some mistakes I’ve made since the start of my trading:

Holding on hope in a bearish market, wishing and praying that the bulls will recover the price. Meanwhile I watch my BTC value tank. It’s sad when you see that one you thought was a sure bet sinking like the Titanic, and you want to have been right on your call so you keep holding and holding in addition to biting your nails. This is bad, real bad. Sell, just sell it all. Sure that might put you down a bit, and if it rebounds, buy back in and that might put you down a bit more, but it will sure be a hell of a lot less red than the gigantic red tears you’ll have if you hold hoping for that rebound.

Buying on emotions. Fear. Fear of missing the bottom. Fear of missing the train. I can’t even begin to count how many times I’ve felt that feeling and it overcomes. It even still happens from time to time I’ll admit, because hey we’re being brutally honest :).

Selling on emotions. One time I sold solely on a well known twitter personality saying that the coin was going to tank further, so I sold, it was at the bottom and rebounded.

Being lazy or forgetful and not checking the markets for what I’m holding, or holding too many different coins that I don’t take the time to check the current market for each and every coin. This has happened many times and I’ve missed sell signals losing precious BTC value.

 

 

Comments are disabled