The One Question That Every Trader Should Ask Themselves

[Joeboy]

Before going into any trade or investing in any project, one of the many question that I believe that every traders, most especially the beginners should ask themselves is-
"If this trades doesn't go as planned, will I still be able to sleep at night?"

Why This Question is Important -
Asking yourself the question enable one to access:
1) If one is emotionally and financially prepared to lose thst particular amount

2) If the trade is driven by FOMO, hype, or clear and critical analysis

3) If the decision will affect other areas of one's life

Let's Look at a Real Case Scenario
We have of course seen what happened with project like LUNA, MANTRA etc. Those traders that failed to ask themselves the hard question before investing lost not just their money but also their trust in the crypto market entirely and not just that it also rendered most of the investors bankrupt and then back to square one.

Final Words
The crypto market is highly unstable, that it why it is important that traders only invest what he can afford to lose. So the next time as you are about to click that “buy” button, stop and ask yourself:

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

[Oshosondy]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

This is truly a very good question that a trader supposed to ask himself before trading. But someone may not know until the person begin to trade and experience it himself.

It is true that there are traders that may have opened positions and not able to sleep at night and this can affect the traders health.

Another one is when a trader opened position and earn money easily at night and open another position, thinking it will also be easy but which can last longer and deprived the person of sleep.

[Floxynice]

Do not think that traders are not aware of these, but the thoughts of the potential profits to be gains from going ahead with such trade tends to becloud their sense of reasoning. Even before they lose their money (that is if they become unfortunate), you see them restless and constantly monitoring their trades. Even if they forget to ask themselves these questions, that restlessness they feel whenever they open a position is a clear sign that they will never be alright if anything bad happens to their money.

[Zaguru12]

Do not think that traders are not aware of these, but the thoughts of the potential profits to be gains from going ahead with such trade tends to becloud their sense of reasoning. Even before they lose their money (that is if they become unfortunate), you see them restless and constantly monitoring their trades. Even if they forget to ask themselves these questions, that restlessness they feel whenever they open a position is a clear sign that they will never be alright if anything bad happens to their money.

That bring us back to the analysis that a successful traders/trade is base on 30% of the knowledge or strategy and then the other 70% is base on psychology. Most trades actually do reason this as you have pointed out then go ahead to trade due to FOMO. One thing I always say to traders is that before you consider the amount you’re going to make sure you have actually considered what you’re going to lose also. A strategy might look nearly perfect but a turn of events can change the market sentiment most especially if you’re trading altcoin.

You will some people open a position and be restless throughout the trade and this is one bad way of trading because it shows you lack confidence on the trade, one easy way to actually be confident on a trade and avoid all this usual checking of the market is to have a very good stop loss which is usually at a price where you can afford to lose to the market.

My advice is that before going in all in a market consider it can go wrong and you will lose, losing some amount is better than getting liquidated in one trade

[Davidvictorson]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

I like the reflective questions that is asked. It gives one a sense of direction and clarity and to come to terms with the reality that is on ground. In my estimation anyone who only trades with a small amount of money may not need to ask themselves questions especially if that is an amount that if it is lost to trading will not be a problem. Also, this question will come up less and less as experience in trading grows. Other questions will then take over. And that could include how they could use leverage in a way that their risk to reward ratio will be balanced for optimal profit.

[nara1892]

Honestly, I like the topic you brought up, OP, because that's exactly what anyone should do before entering the market and depositing money. This question will tell us whether we can take responsibility for every decision we make. This is because, in fact, there are many losers in the market, and of course, it's certain that they come without doing any research on what and how trading actually works.

This is why we must always know beforehand what activities we will actually be facing. Only then will we be able to assess whether we are capable of facing the risks. If we are not, we will not lose a lot of time and money due to poor decision-making.

[Zoomic]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

Many traders will never ask themselves the question above. If they do;
["] They will begin to trade with what they can afford to lose, which will likely not give them good profit.

• If they do, they will not trade everytime (over trading)
• If they do, some can avoid futures
• If they do, trading might be boring.

The set of people that doesn't ask the question are the set that thinks that gambling is just a 1 way thing. It's only the good side and quick money side.
A good trader who is a good risk manager will be successful on the long run.

[freedomgo]

Final Words
The crypto market is highly unstable, that it why it is important that traders only invest what he can afford to lose. So the next time as you are about to click that “buy” button, stop and ask yourself:

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

I’d go with the word volatile rather than unstable. Bitcoin has already proven its long-term stability if you look at the big picture, you'll see it has recovered from major crashes and is now hitting new all-time highs. The volatility is part of the game, but really, it’s us who are often unstable, not Bitcoin.

I think we also need to learn how to accept losses,  it makes the whole experience easier. If we can't, maybe we need to treat it like athletes do: even pros have psychologists to help them handle defeat. Same logic applies here.

[Eternad]

Final Words
The crypto market is highly unstable, that it why it is important that traders only invest what he can afford to lose. So the next time as you are about to click that “buy” button, stop and ask yourself:

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

I’d go with the word volatile rather than unstable. Bitcoin has already proven its long-term stability if you look at the big picture, you'll see it has recovered from major crashes and is now hitting new all-time highs. The volatility is part of the game, but really, it’s us who are often unstable, not Bitcoin.

I think we also need to learn how to accept losses,  it makes the whole experience easier. If we can't, maybe we need to treat it like athletes do: even pros have psychologists to help them handle defeat. Same logic applies here.

Losses teaches you a lesson. If we accept and learn from it, we will be able to improve our knowledge in handling bitcoin. We'll know how volatile it can be so we strengthen our emotion to avoid doing some actions that we will regret in the future.

It's not advisable if you will trade using a money that is intended for other purpose. Even expert traders still lose in trading so if you're a newbie who will dive into trading without enough kniwledge then you are definitely going to lose money so you should really not spend what you cannot afford to lose.

[Shawheer Khan]

Before going into any trade or investing in any project, one of the many question that I believe that every traders, most especially the beginners should ask themselves is-
"If this trades doesn't go as planned, will I still be able to sleep at night?"

Why This Question is Important -
Asking yourself the question enable one to access:
1) If one is emotionally and financially prepared to lose thst particular amount

2) If the trade is driven by FOMO, hype, or clear and critical analysis

3) If the decision will affect other areas of one's life

Let's Look at a Real Case Scenario
We have of course seen what happened with project like LUNA, MANTRA etc. Those traders that failed to ask themselves the hard question before investing lost not just their money but also their trust in the crypto market entirely and not just that it also rendered most of the investors bankrupt and then back to square one.

Final Words
The crypto market is highly unstable, that it why it is important that traders only invest what he can afford to lose. So the next time as you are about to click that “buy” button, stop and ask yourself:

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

These are solid points and can save one from losing extra money by asking themselves a question. I respect your opininion. But i think that mostly beginner traders think of trading as a GET RICH QUICK scheme. They think investing $100 can make their fortune. It is not their fault too as todays trading "GURUS" make it look that way by only showing huge profits. so if a trader with that capital invests with risk management he/she will see their expectations not met and do overtrading and eventually leave the market by losing that capital. so in my opinion trading should not be seen as a money multiplier but a full strategic War. in which you have to save yourself not conquer. Im just talking from the beginners point of view. These points can help a more experienced person who has spent some time in the market.
Please correct me if im wrong

[shinratensei_]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

This is why I trade using limited margin around 1-5% of my portfolio, in case of things went really wrong i'm not losing anything, that 1-5% loss I can recoup back in no time and therefore I can sleep at night.
I always prefer building profit slowly than in one fell swoop only to get liquidated later.

Risk management is the key that people often overlook just because they become greedy and become FOMO.

[Joeboy]

But i as a trader think that mostly beginner traders think of trading as a GET RICH QUICK scheme. They think investing $100 can make their fortune. It is not their fault too as todays trading "GURUS" make it look that way by only showing huge profits.

Most of these so called “gurus” sef are nott even real traders, they are just some online marketers and scammers who knows that people are desperate to make quick money, so they  begin posting screenshots and and once you register with them, you may end up not learning anything.

That is why it is Important for beginners to be very cautious and always ignore or walk away if anyone is promising you 100% profits in crypto without any single loss if they train you. This is what this scammers and fake signal sellers fail to tell the newbies-

- That losses is a huge part of Trading, meaning that is cannot be completely avoided. However what differentiates the loss incurred by a professional from that of a newbie is simply the level of  Risk Management involved. A professional in his own way has the ability mitigate this risk, thereby leading to smaller and fewer loss.

[Lida93]

A whole lot of new traders are trapped in the euphoria of making profits so much that they trade with such an amount that they don't take into thought of what are risking is anything they can afford to lose. And not until they have taking a position and it starting moving against them that's when they start considering the amount they used in the trade.

[Webetcoins]

I’d go with the word volatile rather than unstable. Bitcoin has already proven its long-term stability if you look at the big picture, you'll see it has recovered from major crashes and is now hitting new all-time highs.

I think both of them are just the same. Saying unstable cryptos is also more fine because the word volatile is often used in Bitcoin. BTC seem to not dump big anymore and that makes you think it is stable but there are also times where it can experience a literal stability. It is like the history for BTC is repeating because I think the coin is also more stable before.

The volatility is part of the game, but really, it’s us who are often unstable, not Bitcoin.

Unstable or inconsistent, right! Still, if let say BTC is going according to what many are thinking, that should give them a different kind of motivation. When it comes to losses, at first it is hard, especially if the loss is big but if we experience it often, we can also get used to it and more if we will try to stay positive and follow what you said there.

[Mrbluntzy]

Final Words
The crypto market is highly unstable, that it why it is important that traders only invest what he can afford to lose. So the next time as you are about to click that “buy” button, stop and ask yourself:

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

You are very correct Joeboy, trading should be about risking what the person can afford to lose, not to risk so much capital that they can not bear the lose. Some losses will not only cause a sleepless night but can even cause a heart attack, depression can lead to a critical situation, high blood pressure or anything dangerous. I watch a traders interview and he said after he started trading, he was designed of HBP, so it's real.

[Wiwo]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

This is truly a very good question that a trader supposed to ask himself before trading. But someone may not know until the person begin to trade and experience it himself.

It is true that there are traders that may have opened positions and not able to sleep at night and this can affect the traders health.

Another one is when a trader opened position and earn money easily at night and open another position, thinking it will also be easy but which can last longer and deprived the person of sleep.

Most times i dedicate a day of trading and this days i dont have enough sleep as i mostly open position during the night and sometimes i can get a little carried away with market situations and anxiety that can cost me a whole night of sleep, and ultimately affect my well being the following day.

So what i do in this situation is to only trade once and when i end uo in profits, i take a leave and if the market want to go against me and my SL triggered, i just walk away also, so most times i have overcome that stage where my trading can really affect me physically or mentally.

[Mpamaegbu]

Before going into any trade or investing in any project, one of the many question that I believe that every traders, most especially the beginners should ask themselves is-
"If this trades doesn't go as planned, will I still be able to sleep at night?"

Even veterans also have problem dealing with their emotion. Otherwise, most veteran traders would be winning. I don't like using tiny lotsizes in trading as that simply amplifies what's obvious – Fear. Fear is a dangerous emotion to have as a trader.

I like to increase my lotsizes and do the Money Management (MM) thing while at it with minimal risk to reward ratio. For instance, instead of doing a 0.001 trade with an SL of 50pips, I would rather do 0.01 with SL of 5pips. Note that both are the same amount of cash. My reason is simple and that's to minimize the number of trades I take per day by looking for entries that will give me the least risk. Again, that 0.01 lotsize will kind of fasten things for me as a very pip counts for something substantial.

In addition, it's best to only risk not more than 5% of one's capital on any trade. With a $1,000 funded account, that means the trader will be trading just $50 on each trade. $50 to lose out of $1,000 isn't an amount that can cause anyone their sleep. I may be wrong, but that's my take.

[Distinctin]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

If the answer is yes, then you can go ahead. But if the answer is no, then it best not to make that trade or investment.

This is truly a very good question that a trader supposed to ask himself before trading. But someone may not know until the person begin to trade and experience it himself.

It is true that there are traders that may have opened positions and not able to sleep at night and this can affect the traders health.

Another one is when a trader opened position and earn money easily at night and open another position, thinking it will also be easy but which can last longer and deprived the person of sleep.

While a real trader should know about this prior to trading,  but due to greed and lack of knowledge and experience, they tend to only look at this purpose after they have committed wrong decisions that eventually lead to their consistent losses in trading.

This may serve a wake up call, particularly for newbies in trading to always consider thinking the consequence first if ever your trade does not go as places, so as to avoid regrets and blaming yourself after you lose your trade.

[Bitcoin Smith]

IMO, day traders don't concentrate much on the utility or even the FA except the news that affects the price of their coin/token.

I don't have much recommendation for them except don't day trades but these questions fit well for an investor too, one should invest only an amount that they are willing to lose and if they did whether it will affect their life in any way?

Learning from our mistake is wise thing to do but it's even better if we learn from others mistakes and save time and a lot of money too.

[Botnake]

"If this trades doesn't go as planned, will I still be able to sleep at night?"

This is why I trade using limited margin around 1-5% of my portfolio, in case of things went really wrong i'm not losing anything, that 1-5% loss I can recoup back in no time and therefore I can sleep at night.
I always prefer building profit slowly than in one fell swoop only to get liquidated later.

Risk management is the key that people often overlook just because they become greedy and become FOMO.

The problem is, practicing proper risk management is often overlook because for them, their confidence to trade will help them build their trading profits, not realizing that any time their trades will not go as planned, and will fail to give them consistent profits.

For me, experience is the key. If they won’t lose in the process, then they will never realize the realities about trading and they will never gain a lesson that they can benefit throughout their trading career.