Losing your hard earned money on trading is one of the traumatic experiences that might happen to you. This is usually happen when you are so bullish on the coins you are investing. Here are my thoughts on how to redeem you from this kind of experience.
1. Acknowledge that you did something wrong There are no other ways to start the process of redemption by accepting the fact that you made wrong decision. You need to accept that every once in a while we do poor judgment. It is important; when this thing happens to us we are ready to humble ourselves that we committed mistakes.
2. Identify the problems
a. Lack of experience – I was a successful trader in stock market winning mostly of my trade. But playing here as a day trader in crypto is something new. Your success in stock market doesn’t guarantee you success in BTC.
b. Playing aggressive – Since I have too much ego in my head I put all my money in one coins only. I didn’t consider altcoins to hedge risk from BTC. There are altcoins who doesn’t affect much by this massive correction.
c. Didn’t follow my trading plan – Foundation of trading practice is to follow the plan you have originally set. Your exit strategy is one of those important decisions you will made. It composes of selling and cut loss strategy.
3. Courses of actions a. Never stop growing (learn the new market) – In every new things to we do it is very important to know our strength, weakness, opportunities, and threats (SWOT). Money is involved in every trade which make, which gives us reasons why we need to study the every aspects of cryptocurrency.
b. Follow religiously your trading plan – There some trader who doesn’t have trading plan, in my case I have one which was not followed. Trading plan was based on your personal experience in trading. In time these plans was polished and test its effectiveness. If followed properly chances of success are increase.
c. Never stop trading – If this single defeat dictates me to stop then the real loss will happen. These circumstances should ignite us to continue, make this experience to hungrier for success.
d.Diversify your portfolio – Never do all in trade. These will gives you room for another alternative once the other coin doesn’t do well. Balance your portfolio composes of your well research coins.
After careful assessment of my situation, I believe that once a trader will always be a trader. I may lose sometimes but will rebound harder and stronger.
Remember merits are perishable if not useThis hits me hard. All the opinions you share are great and really useful. Trading in this market is risky but you learned your lesson and you afford to share this knowledge to this community and I appreciate you for doing so. You might lose the cash but you earned the wisdom and I congratulate you for that mate. Bright future ahead, heads up.
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