#8 Trading Psychology
December 6, 2024•282 words
Bitcoin hit $102.000 and I had this really sad almost depressed moment when I woke up in the morning.
I woke up and when checking the prices along with morning coffee and discovered that bitcoin has passed $100,000 and I didn’t have any bullish positions open.
You see, I was thinking about it about 12 hours ago and I wasn’t sure if it’s gonna happen or we will dip more before push up so I decided intentionally that I am not gonna open any position not to wake up liquidated.
"Let's see how things will shape out." was my thought. It was a good strategy and one of the basic rules - never trade when you're not convinced about the trade.
Anyway, good process and strategy led to me basically missing the incredible jump above $100k. It could have been a great win on the right side of the trade. Even though it was conscious decision, I felt down for almost an hour after I found out. First, I couldn’t put my finger on what's wrong and then I realised it was the MISSED TRADE.
I'm writing all this to remind myself and you that trading is hard not because of risk but because of psychology. You are literally your single worst enemy when you don't control your impulses and moods and don't follow a process.
I got my optimism back after writing this and we now also know that we'll (maybe) have a second chance because BTC dipped below $100k again.
What do you think? - Do you trade and do you have a process? Maybe you only invest which is smarter option.
Let me know on Farcaster! Or find me on Twitter/X or LinkedIn!
Till tomorrow! 🤠