Trading, emotions and your fine selves

[carlfebz2]

in my opinion the worst thing in trading is to listen to other people hyping something up. it is also indirectly related to emotions in trading.

there are many people in the trading world that will always get carried away with what they read especially on this forum. for example if there is hype going on about an altcoin they will run to buy that altcoin.

This is true, listening to other people or read specially on the troll box somewhat affect your emotion since we put through our mind that we musnt be left behind on gaining profit or being behind on the boat but in real speaking these are just still speculations or try to hype things up. That's why it sometimes frustrating when you bought an alt because of that wrong hype.

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[rafaelyarulin]

Try to find some books from stock market theme. It`s much older than crypto market. There are a lot of experienced traders who can give good advices or trading psychology or risk management.   

[Tomik21]

For example, about myself I know that I will never sell in the falling market. Better burn it all down. But I do not know how to determine the maximum growth at which to sell. And that's a big problem.

[tee-rex]

There are countless examples on this forum of people declaring things dead or emphatically stating that such and such price will never happen again and giving up. Same goes for people going all in at the peakiest of peaks.

Have you yourself found your emotions tripping you up or are you an emotionless trading terminator?

I suspect opinions vary strongly. For example, you can be a very impulsive person and quick on the trigger, so to speak, but if you trade by numbers (I'm not talking whether they would be right or wrong) and can actually force yourself to stick to your trading strategy, can you be considered "an emotionless trading terminator" even if you do in fact have a lot of emotions? What about trading bots then? From my experience, if anyone or anything ever comes close to being a trading terminator, it is them without fail.

[gentlemand]

I suspect opinions vary strongly. For example, you can be a very impulsive person and quick on the trigger, so to speak, but if you trade by numbers (I'm not talking whether they would be right or wrong) and can actually force yourself to stick to your trading strategy, can you be considered "an emotionless trading terminator" even if you do in fact have a lot of emotions? What about trading bots then? From my experience, if anyone or anything ever comes close to being a trading terminator, it is them without fail.

If you can keep your emotions out of your trading then you are indeed a terminator. You're welcome to have emotions elsewhere.

As for bots, they can trigger cataclysmic events just by getting swept up in the movements tiggered by the emotions of human traders and run riot before they can be stopped. So they can be emotional in their own odd little way, albeit unintentionally.

Try to find some books from stock market theme. It`s much older than crypto market. There are a lot of experienced traders who can give good advices or trading psychology or risk management.   

You are indeed correct. It doesn't matter how old the market is. Humans don't change. Look up anything by Jesse Livermore or the Reminiscences of a Stock Operator by Edwin Lefevre. They're both very old and very relevant.

[BarbusseH]

Negative emotions are emotions anyway. The more a person experiences emotions the brighter his life. Do not bad relate to negative emotions - you need to find something good in them.

[oda.krell]

I work under the assumption that controlling emotions in trading (and maybe in other aspects of life else as well) is practically unachievable for all or most of us. The best one can do, often with decent results, is recognizing them, and applying some (simple) self-hacks to counter these emotions.

I like to think of this process as applying 'filters' to my own biases, which I have observed over time in my own behavior and/or actions. Example: after noticing that I frequently act according to some bias (over a certain time frame, on a certain market), I will try to counter this bias by adjusting my current decisions in the opposite directions, e.g. lower my (subjective) probabilities for an upwards scenario to come true in case that, historically, I have suffered from a bullish bias in similar situations.

Like I said, kind of crude -- but so far, somewhat effective.

[tee-rex]

I like to think of this process as applying 'filters' to my own biases, which I have observed over time in my own behavior and/or actions. Example: after noticing that I frequently act according to some bias (over a certain time frame, on a certain market), I will try to counter this bias by adjusting my current decisions in the opposite directions, e.g. lower my (subjective) probabilities for an upwards scenario to come true in case that, historically, I have suffered from a bullish bias in similar situations.

I kind of understand your approach but wouldn't it be better and more effective to find out where you fail exactly in your strategy and then focus on fixing the broken part in a right way? I mean, not by offsetting one bias by another bias. If your approach works for you, then certainly stick to it, but it may fail you one day. For example, when what you automatically consider a bias is not in fact a bias but actual representation of the market situation.

[mutrang23]

For example, about myself I know that I will never sell in the falling market. Better burn it all down. But I do not know how to determine the maximum growth at which to sell. And that's a big problem.

You do not know the market analysis and prediction move I think you should become the holder. If you become a Holder, you will not have to worry about the market going down, without learning how to analyse the market and try to judge its direction.

[oda.krell]

I kind of understand your approach but wouldn't it be better and more effective to find out where you fail exactly in your strategy and then focus on fixing the broken part in a right way? I mean, not by offsetting one bias by another bias. If your approach works for you, then certainly stick to it, but it may fail you one day. For example, when what you automatically consider a bias is not in fact a bias but actual representation of the market situation.

Absolutely. Correcting mistakes in your strategies is also crucial. But OP asked about controlling your emotions, and I believe (a) that emotions are unavoidable to some degree for human traders, and (b) that they can be seen as some form of statistical biases. If removing these biases is not an option, then countering them in the way I described seems to be the next-best option.

[mudasarali43]

Trading , emotions are related to each other because both are making to you fine and emotion are directly related to the emotions because your financial system is depending on it and the finance is makes you happy and sad also,

[tee-rex]

I kind of understand your approach but wouldn't it be better and more effective to find out where you fail exactly in your strategy and then focus on fixing the broken part in a right way? I mean, not by offsetting one bias by another bias. If your approach works for you, then certainly stick to it, but it may fail you one day. For example, when what you automatically consider a bias is not in fact a bias but actual representation of the market situation.

Absolutely. Correcting mistakes in your strategies is also crucial. But OP asked about controlling your emotions, and I believe (a) that emotions are unavoidable to some degree for human traders, and (b) that they can be seen as some form of statistical biases. If removing these biases is not an option, then countering them in the way I described seems to be the next-best option.

Yeah, I see your point. But I still think that in the case you can't control your emotions, you'd likely fare much better if you go by numbers. In this manner, you won't be multiplying your biases brought about by emotions. If you ask me, the first way (going by numbers) would provide more consistent results in the long run even if your strategy is totally subpar and not giving you results you are looking for. You will just be able to see that at once with no emotions involved and biases they cause.

[kolega]

Unfortunately, emotions constantly influence the making of right decisions. When you need to sell, you think, but suddenly I will earn more. You have to fight with doubts, greed, fear of loss. Very helpful drafting a trade plan, where it is prescribed, when to buy or sell in a certain situation on the market.

[aiviaa485]

I think that beginners Cryptocurrency trading must wear emotions and always want a big profit, and it is impossible that beginner traders if trading without emotion.

different from the trader who has experience. they use price and news analysis along with FUD for Bitcoin or other altcoins.

[Cryptrx]

When I started trading, I fell victim of the emotion war especially after reading how some coins are dead by the so called gurus.

[Harley29]

When I started trading, I fell victim of the emotion war especially after reading how some coins are dead by the so called gurus.

Coin never die itself but we kill them, as we all know bitcoin has volatile nature and it use to rise and fall then selling even then can be our own mistake, so if you see price falling just have patience and don’t panic so this way you can avoid a lot of loses, but selling being so emotional can cause danger for you, right now I would say don’t lose your emotions and don’t sell at panic even if you see the market is fallen to the bottom.

[JohnWick_Bitcoin]

I was trading with emotions at the beginning but now I am able to control my emotions up to some extant (especially when I see a constant purchase orders by bots on every second). I try to stick to the investment rules of the great investor warren buffet, he says “Be fearful when others are greedy and greedy when others are featful”. I have no shame to tell that I still place some orders without deep research but I know that’s wrong and I would improve it soon.

Those traders who are using their emotions in the market are just newbies because most of the people in the market who are well experienced already know how the market works so you should always wait for the prices in the market to grow before selling your coins.

[DirtMcGirt36]

Acting like a robot seems to work out quite well.  No emotions, only profits

[Diablomania]

Emotions are something that can not be controled in here at 100% , that is the main reason of why we need to take care of ourselves while trading, because it is not an easy task

[redsun114]

Acting like a robot seems to work out quite well.  No emotions, only profits

Like a business theory, we can also consider this option. There is a saying according to that theory, we only want a pair of hands that must not have any connection with brain. Here in trading as well, we might say we can be robots who don’t have any emotions. Those who would just do work for getting profit according to the best strategy. This would help us to make good results.