The Bitter Truth – Why Traders Need to be Brutally Honest with Themselves
It’s time, to be honest with your trading. The saying the truth can hurt is accurate, 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 natural sugar coating also makes it easy to repeat the same mistake over and over again.
All traders need to have a trading journal for sure and not just a scrapbook with your trades that you’ve done; a 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 mistakes 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. Probably this is the simple only way you’re going to stop repeating mistakes. Or Did you have a good day? Write down what made your trades enjoyable, 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, really bad. Sell, 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 surely be a hell of a lot less red than the large red tears you’ll have if you hold hoping for that rebound.
I am buying on emotions. Fear. Fear of missing the bottom. Fear of losing the train. I had that feeling so many times before, I’ve felt that feeling, and it overcomes. It also still happens from time to time I’ll admit, because hey we’re brutally honest :).
I was 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 review the current demand for every currency. Happened to me so many times, and I’ve missed sell signals losing precious BTC value.