Do you trade based off emotions?

[jt byte]

Sometimes yes, if i am happy maybe i risk up to 1BTC at once.
But sometimes when i am sad, i also trade but in less amount.
Since i am a human and not a trading bot, the emotions affect to trade or not to trade.

A technique I found helpful is to wrote down what would need to happen in order to trade, and only trade when the criteria were met. For example: "(1) if BTC/USD reaches $300 and then falls below $300 then I'll go short. (2) If BTC/USD reaches $200 and then rises above $200 then I'll go long." Anytime I'm tempted to trade I check my criteria, and if they've not been met I know I'm just trading on emotion. It forces me to think through what likely scenarios are, and how I can profit from them (and, equally, avoid losing scenarios).

Well this technique most of the times works,
But i don't use it often or even think about it.
I mostly analyze what is happening what the community is saying etc.

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[LMGTFY]

A technique I found helpful is to wrote down what would need to happen in order to trade, and only trade when the criteria were met. For example: "(1) if BTC/USD reaches $300 and then falls below $300 then I'll go short. (2) If BTC/USD reaches $200 and then rises above $200 then I'll go long." Anytime I'm tempted to trade I check my criteria, and if they've not been met I know I'm just trading on emotion. It forces me to think through what likely scenarios are, and how I can profit from them (and, equally, avoid losing scenarios).

Well this technique most of the times works,
But i don't use it often or even think about it.
I mostly analyze what is happening what the community is saying etc.

The approaches aren't mutually exclusive! When I write down criteria for a trade, it follows analysis (you could also apply sentiment analysis - what the community is saying - though I tend to focus on technical analysis and fundamentals, the ratio of TA:FA depending on the timescale).

[Ektra]

A technique I found helpful is to wrote down what would need to happen in order to trade, and only trade when the criteria were met. For example: "(1) if BTC/USD reaches $300 and then falls below $300 then I'll go short. (2) If BTC/USD reaches $200 and then rises above $200 then I'll go long." Anytime I'm tempted to trade I check my criteria, and if they've not been met I know I'm just trading on emotion. It forces me to think through what likely scenarios are, and how I can profit from them (and, equally, avoid losing scenarios).

That's a good idea I'll have to steal. Getting caught up in the moment is hardly ever a good thing, and this technique (writing down instructions to yourself) could help your objectivity and detachment when important moments come.

[dothebeats]

One golden thing that I learned in trading: be heartless when your money is at stake. I've never been urged by my emotions to execute a trade just because of my feelings. I did my first trade when I already know the basucs of it and have studied something about it. Some times, I feel like I should immediately sell because price is going south, but I sticked to my plan and managed to sell at the top and make a good profit out of it.

[bitmarket.net]

trading bot / algo strategy is a good way to avoid emotions getting in the way of your trading.

Every trader, whether he is aware of it, or not, has some trading system - buy if this happens, sell if that happens.
algo strategy is a way of codyfing it and leaving the execution of your system to the computer.

[Mickeyb]

One golden thing that I learned in trading: be heartless when your money is at stake. I've never been urged by my emotions to execute a trade just because of my feelings. I did my first trade when I already know the basucs of it and have studied something about it. Some times, I feel like I should immediately sell because price is going south, but I sticked to my plan and managed to sell at the top and make a good profit out of it.

I know, we know all of this, but this is easier said than done in my opinion. I always had problems with emotions getting the best of me. Even if I managed not to sell when the things are going south or not to buy when there is a parabolic growth, I would be watching my phone for price updates all of the times.

I don't know, one has to have brain for trading. You can learn many things but to keep your emotions in check is quite hard. That's why I stopped trading. Since then, I am a much happier man!

[Raimonn]

Trading with emotions is something that we cannot break, there is something called market emotions, if other digital coins are going up the bitcoin market will be happy and easier to grow. If economy goes down, all markets are angry and its difficult to go up. Professional traders study how emotions affects to markets.

[bitmarket.net]

Sometimes yes, if i am happy maybe i risk up to 1BTC at once.
But sometimes when i am sad, i also trade but in less amount.
Since i am a human and not a trading bot, the emotions affect to trade or not to trade.

A technique I found helpful is to wrote down what would need to happen in order to trade, and only trade when the criteria were met. For example: "(1) if BTC/USD reaches $300 and then falls below $300 then I'll go short. (2) If BTC/USD reaches $200 and then rises above $200 then I'll go long." Anytime I'm tempted to trade I check my criteria, and if they've not been met I know I'm just trading on emotion. It forces me to think through what likely scenarios are, and how I can profit from them (and, equally, avoid losing scenarios).

This is a very good approach.
I would add one more element to this strategy: write down what you expect to happen AFTER you get into a trade.
For example, you buy btc at $280, because you expect it to go to $300 within the next 2 days. Instead, it trades around @278-282 for the next week.
The loss might be less then your stop-loss, but the reason you've entered the trade for is no longer there, so you should exit the trade and wait for the next opportunity.

[anthonycamp]

i simply dont use any adrenaline into btc i just use some small amounts of gambling and trade for tring to get the most profit out of it but adrenaline and emotions are very common into any human like me and you soo we use it and try not to lose control out of it and yes we are able to trade but with caution

[bitmarket.net]

There are 2 types of errors people make because of their emotions:
- some people over-trade; they are scarred of missing an opportunity, are not patient enough to wait for all their signals to get in line and so they trade too often, get into the trades they shouldn't have and lose money as a result
- other people are to hesitant to enter into a trade and as a result, they miss good trading opportunities.

do you recognise any of these mistakes in your own trading ?

[YuginKadoya]

There are 2 types of errors people make because of their emotions:
- some people over-trade; they are scarred of missing an opportunity, are not patient enough to wait for all their signals to get in line and so they trade too often, get into the trades they shouldn't have and lose money as a result
- other people are to hesitant to enter into a trade and as a result, they miss good trading opportunities.

do you recognise any of these mistakes in your own trading ?

Yup! just like trading bitcoin currency to other currencies, what if you trade then BTC increase rates then you lose some amount, you should take carelessness into action when dealing with trading think first before a trade, patient is needed through trading.

[bitmarket.net]

the most dangerous mistake you can make because of your emotions is so called "revenge-trading", if you lose some money and get into another trade straight away to make it back.

It is good practice to force yourself to take a break from time to time (for example, once you lose certain amount of money), so that you can start thinking clearly again.

[erikalui]

I often get emotional while trading whether in bitcoins or forex. I trade on ecoin.eu, instaforex and roboforex and when sometimes I gain a lot of profit in just a week, it takes a month at times to get profit. Initially when I lost $40, I got a bit emotional and decided to stop trading but then I got addicted and kept losing even more. Now aftera lmsot a year I again started trading and am more practical while trading. I don't trade for profit but more for experience and my profit margin is very less. This makes me less worried about my loses and concentrate more on the trend and rates. Currently the trend is between $200 and $300 and hence I know how much I need to invest and when do I need to withdraw my profit.

[bitmarket.net]

I often get emotional while trading whether in bitcoins or forex. I trade on ecoin.eu, instaforex and roboforex and when sometimes I gain a lot of profit in just a week, it takes a month at times to get profit. Initially when I lost $40, I got a bit emotional and decided to stop trading but then I got addicted and kept losing even more. Now aftera lmsot a year I again started trading and am more practical while trading. I don't trade for profit but more for experience and my profit margin is very less. This makes me less worried about my loses and concentrate more on the trend and rates. Currently the trend is between $200 and $300 and hence I know how much I need to invest and when do I need to withdraw my profit.

That's actually quite common - people trade because they want to experience the thrill of winning.

The rule number one is that trading should never be done for fun.
If it's some fun you're looking for, you are better off going to the casino.

[neurotypical]

Nope, I tend to have reasonable arguments. I for example think that, Bitcoin has a very small marketcap, and other companies have marketcaps 10 times bigger while doing less disruptive things. Bitcoin should be able to reach a trilion marketcap based on how much it can disrupt a lot of alrady existing services. Therefore, I must HOLD long term.

[bitmarket.net]

Nope, I tend to have reasonable arguments. I for example think that, Bitcoin has a very small marketcap, and other companies have marketcaps 10 times bigger while doing less disruptive things. Bitcoin should be able to reach a trilion marketcap based on how much it can disrupt a lot of alrady existing services. Therefore, I must HOLD long term.

OK, then you are the investor, not a trader.

[Slark]

If you take a closer look at bitcoin economy you can see that trading of BTC is mainly based on whims of people.
Mentality of a crowd and overreacting after hearing bad news are 2 major examples of emotional bitcoin trading.

[erikalui]

I often get emotional while trading whether in bitcoins or forex. I trade on ecoin.eu, instaforex and roboforex and when sometimes I gain a lot of profit in just a week, it takes a month at times to get profit. Initially when I lost $40, I got a bit emotional and decided to stop trading but then I got addicted and kept losing even more. Now aftera lmsot a year I again started trading and am more practical while trading. I don't trade for profit but more for experience and my profit margin is very less. This makes me less worried about my loses and concentrate more on the trend and rates. Currently the trend is between $200 and $300 and hence I know how much I need to invest and when do I need to withdraw my profit.

That's actually quite common - people trade because they want to experience the thrill of winning.

The rule number one is that trading should never be done for fun.
If it's some fun you're looking for, you are better off going to the casino.

It's easy to say that trade an amount which you can afford to lose but when people lose, they either get depressed or they tend to invest a higher amount with the mind plan to gain not only more profit but also the amount they have lost. Since I have an experience with Stock market as well, I've seen many who don't try to be greedy initially but the streak of winning makes them lose not only what they have earned but also they are also affected mentally. It's better to trade to gain an experience rather than be emotionally attached to it which can be worse. It's not fun but when you don't get an amount you expected, accept it and move on rather than be stuck with your loss.

[MissionPhailed]

Well, I traded with emotion in the past. I managed to blow 90% of my investment in 48 hours, a quite impressive score to say the least ... ! Luckily my investment was only $20.

I do not consider myself a good trader so I refrain from it almost completely.

[InvoKing]

Being a noob trader, i used to buy few altcoins that i feel it will be a success but at the end i just sell it under the half of its price.
In the other hand I saw few altcoins that made a short success and could make *3 -  *4 and didn't bought it thinking it will fails like the other failcoins.
So yeah emotion couldn't fit with trading.... at all.