Is trading more stressful mentally than long term investment?

[tvplus006]

...My psychological state was stable in accumulation Bitcoin weekly in long term Bitcoin investment but in trading it is completely different and stressful. Instead of wasting our nerves, I am realizing more and more that we should accumulate Bitcoin for the long term. Trading is a mental stressor.

Of course, trading requires much more time and nerve cells than a long-term investment. But in my opinion, you have the opportunity to consider every unsuccessful purchase on the spot market as a long-term investment made under a conditional DCA.

[justdimin]

Trading isn't for me because I constantly think about my opened positions and this makes it hard for me to focus on work and I basically waste days. I also can't imagine myself going to the restaurant or the swimming pool and having opened positions, I would always think about my positions and it would ruin my day. Long-term investments are the best option for me. I'm anxious in first weeks but later, I don't care much about the price and I don't check my portfolio, so I feel mentally stable and it doesn't affect my work or weekends.

So true! I know some people will say that if we are trading correctly, we don't need to watch the trades or worry about them. But the reality is that it's nearly impossible to forget the trades and enjoy daily life, especially when the trades are bleeding and the market is crashing down.

Long-term investments are usually not so stressful because we believe in the long-term vision but even so, when the price is plummeting, it still gets stressful. Earlier, I also used to say that just relax and calm down, but all these things don't really work out in real life when your hard-earned money is on the line and dropping by the minute.

[Pandorak]

My psychological state was stable in accumulation Bitcoin weekly in long term Bitcoin investment but in trading it is completely different and stressful. Instead of wasting our nerves, I am realizing more and more that we should accumulate Bitcoin for the long term. Trading is a mental stressor.

First of all, you need to realize that trading isn’t easy, it’s not just a matter of buying, waiting for the price to rise, then selling to make a profit. It’s not that simple. You need to have a deep understanding of the market before you start trading, you need to be able to analyze the market since your focus is on the short term, this is crucial. Then, as you mentioned, you feel anxious after seeing your portfolio in the red. Remember friend, that ups and downs are normal, provided you’re confident in your analysis, i don’t think you need to worry too much. However, if you start trading relying solely on gut feelings without a clear foundation, trading will ruin your finances.

Therefore, trading isn’t suitable for everyone. Unlike long term investing, which anyone can do and might be the best choice for you, you’ll still see your portfolio take losses, but since the goal is long term, you won’t experience excessive anxiety.

[Webetcoins]

Classic HODLing vs Trading haha .

I mean, there is no denying that holding has been more fruitful so far but the market has pretty much saturated and stabilized. Which means that expecting 100x from here is unrealistic, which was not the case 5 years ago and hence holding made more sense back then.

This is why trading is perhaps the better option but comes with more risks and is way more stressful because you have to watch the market and prices all the time. One time, you are caught sleeping and lose everything.

[jossiel]

A few days ago I bought some coins separately for trading. I am not new to trading, I started trading before starting Bitcoin investment and now I am accumulating Bitcoin regularly. I started trading in an attempt to use that experience. I had lost my funds from trading before but I did not want to lose again now. But I realize that there is a mental urge or anxiety to look at the portfolio every now and then. The purpose of looking at the portfolio is to see how much my capital size has changed. This is creating a mental anguish for me and I am not able to focus on my work

Do you have this situation in spot trading or is it happening to me? I would like to know this matter from you.

My psychological state was stable in accumulation Bitcoin weekly in long term Bitcoin investment but in trading it is completely different and stressful. Instead of wasting our nerves, I am realizing more and more that we should accumulate Bitcoin for the long term. Trading is a mental stressor.

Every investor is like that.

We always look at how it's going with our portfolio to say if it's doing good or not. Both are stressful but for me, trading is more stressful.

Because you'll have to deal with it whenever you have open orders. Unlike in investing, you can be patient for it while just doing your thing of dca.

[PX-Z]

And take note, not just the same old plan that we are using but we need to tweak/modify it from time to time because the market is also changing often. We make a thought first along with doing an analysis, then we take down notes to ensure that we can not forget all of those. This is preparing already but this is still exhausting.

It is only normal though. Finding a way to make money is never easy anyways but that is also makes it more rewarding once we truly get successful. When it comes to investing, what you said there is not true though but worries are still there during our investment journey. In fact, it is much harder because we are not yet allowed to touch our investments. Not like to trading that we can sell to prevent more losses.

For regular traders, sure, that approach can work. But for people who are mainly holding long term, i think it's better to stick to the simplest plan, hold and wait for the bitcoin price or ATH target you really want.

If you keep overthinking your long term investment every day, then maybe trading fits you better, because that's not really how long term investing works, especially with bitcoin. During bear markets, constantly checking the price can seriously affect your mindset and mental health. The people who successfully held for years usually just stayed patient and avoided reacting to every market movement, and that strategy has proven effective over time.

[passwordnow]

Classic HODLing vs Trading haha .

I mean, there is no denying that holding has been more fruitful so far but the market has pretty much saturated and stabilized. Which means that expecting 100x from here is unrealistic, which was not the case 5 years ago and hence holding made more sense back then.

This is why trading is perhaps the better option but comes with more risks and is way more stressful because you have to watch the market and prices all the time. One time, you are caught sleeping and lose everything.

That goes with both trading in investing. But the difference with investing is you lose on paper and you can still recover that once the market recovers. The same goes with trading but, it depends if you've got it on a leverage. Some might wake up losing everything and getting a notification that they've been liquidated. Investing is growing and teaching us to be more patient while in trading, it is what it is lack of.

[AmoreJaz]

I have the same experienced with your when trading at coins make difficult mentality exactly when the market at downtrend perform, trading with coins outside the top ten standings on the market give us difficult position with possibility raise up significant but can't avoid for dumping drastically. I remember well when holding Matic and rebranding become Polygon coins since higher price above $0.67 almost one year more price not increasing yet make me have cut loss, sometime trading with altcoin make us stress after the market and coins price dump significant, need magician for price recovering back or have to cut loss although loss few percent than become long term holder.

For right now must be careful when trading with altcoin but my priority for right now investing at top altcoin or prefer become holder for bitcoin, won't take risk indeed promising high return when trading at altcoin.

When you go into trading, you need to be prepared not only mentally but financially. Without these 2, even if you are emotionally ready, I don't think you will prosper in this endeavor. As it needs regular checking of what's happening with your alt, it will require constant checking over the net. So you need to be prepared of such time allotment.

[Makus]

Trading involves too many complexities and one would have to put in enough time into studying and understanding a lot of things before they can really be get into trading, this is what makes it more stressful than long term investment. If you plan on investing in Bitcoin you don't really have to learn much, all you need is just a few research, some people invest in Bitcoin without making any research, not that I support this but it just tells you how simple it is, but trading takes years of learning and discipline, not everyone has the patience for it.

[Outhue]

Do you have this situation in spot trading or is it happening to me? I would like to know this matter from you.

My psychological state was stable in accumulation Bitcoin weekly in long term Bitcoin investment but in trading it is completely different and stressful. Instead of wasting our nerves, I am realizing more and more that we should accumulate Bitcoin for the long term. Trading is a mental stressor.

You don't seem to explain clearly what you are actually doing. Trading these days can mean a lot of things, which is why you need to be specific. Are you trading Spot in crypto market, or you are trading a leveraged/margin product? Again, trading could mean a short-term investment too, which one is yours?

As I wait for your reply, our mindsets should shift inline with what we choose (trading/investing). Your case could only denote that you are not prepared for the trading System-wise and Psychology-wise, otherwise, you will not be bothered regardless.

It doesn't really matter much if it's spot trading or margin, I think I get the message clearly, a trader challenges the market everyday or time that they trade, for someone who is not well disciplined they will be under overwhelming stress, and this fits mental stress that OP is talking about, and also this is why I can never become a day trader.

It's always when I see good opportunity in the market that I choose to trade, it can be one time in a week or four times in a month, investing is the most simplest thing to do, it's just a waiting game and lots of patience is required for this one, that's why having a source of income is very important, you don't have to rely on your investment to survive or on trading to pay bills.

[EarnOnVictor]

Do you have this situation in spot trading or is it happening to me? I would like to know this matter from you.

My psychological state was stable in accumulation Bitcoin weekly in long term Bitcoin investment but in trading it is completely different and stressful. Instead of wasting our nerves, I am realizing more and more that we should accumulate Bitcoin for the long term. Trading is a mental stressor.

You don't seem to explain clearly what you are actually doing. Trading these days can mean a lot of things, which is why you need to be specific. Are you trading Spot in crypto market, or you are trading a leveraged/margin product? Again, trading could mean a short-term investment too, which one is yours?

As I wait for your reply, our mindsets should shift inline with what we choose (trading/investing). Your case could only denote that you are not prepared for the trading System-wise and Psychology-wise, otherwise, you will not be bothered regardless.

It doesn't really matter much if it's spot trading or margin, I think I get the message clearly, a trader challenges the market everyday or time that they trade, for someone who is not well disciplined they will be under overwhelming stress, and this fits mental stress that OP is talking about, and also this is why I can never become a day trader.

I only asked the OP for clarification, not because I don't know that what he's talking about aligns well with the margined/leveraged products, but I just wanted to hear from the "horses mouth." However, what I'm surprised about is how you believe it doesn't matter, and  undermines it even with Spot trading. It matters a lot, as Spots trading is almost the same thing as having your money in your wallet after you've purchased it. And if you read the OP correctly, he is not bothered about having is coin in the wallet, but in trading itself. So, if Spot trading is just as your coin is in your wallet, then he is referring to trading in the context of a higher risk, which is margined/leveraged type. That's only the kind of trading that can give traders the sleepless nights in the OP's context.

[Nheer]

Trading involves too many complexities and one would have to put in enough time into studying and understanding a lot of things before they can really be get into trading, this is what makes it more stressful than long term investment. If you plan on investing in Bitcoin you don't really have to learn much, all you need is just a few research, some people invest in Bitcoin without making any research, not that I support this but it just tells you how simple it is, but trading takes years of learning and discipline, not everyone has the patience for it.

You are right trading is more complicated than investing and trading needs more attention, patience, discipline, knowledge and understanding before one could even get it right, and It is not like that for investing where nothing really matters that much only. What one need to understand is just the basic of it and even even without the basics you are still good to go since what is really important is just buying and holding. Some people doesn’t even bothered about it they only focused on what brought them into it which is the profits. Investing is really much easier when compared to trading.

Only few people come into trading and face all this traumas and stay, a lot just run off and stay far away from it cause of the emotions and setbacks it brings.

[I_Anime]

Classic HODLing vs Trading haha .

I mean, there is no denying that holding has been more fruitful so far but the market has pretty much saturated and stabilized. Which means that expecting 100x from here is unrealistic, which was not the case 5 years ago and hence holding made more sense back then.

This is why trading is perhaps the better option but comes with more risks and is way more stressful because you have to watch the market and prices all the time. One time, you are caught sleeping and lose everything.

That’s true , well both are actually risky but one is riskier than the other . Well I engage in both , then I use to think trading was a complete waste of time , because was using the wrong appraisal, like firstly going into trading with only halfsize knowledge.  Doing so was the first big mistakes I made then but now after learning how the skill actually works , I’m now seeing some good progress in my trading journey , which is actually encouraging.