Yes, we're in some crazy bull run where coins like $XLM , $XRP , $HBAR and others did 5x-10x and I congratulate everyone who has made huge profits.
But here's the catch: How to deal with the pain when your cash cow suddenly needs a rest and runs dry for a while? You've made 100s or 1000s of dollars, but suddenly the chart turns red and you see your gains melt away. You're maybe still in a huge profit, but you're losing 100s or 1000s of dollars each day or even within minutes. Or even worse, you bought the top!
Maybe you panic sell to secure your gains or to cut your losses, maybe you keep hodling in disbelief, but whatever you do, you will think that your decision was the wrong one. If you sell, the price suddenly recovers and you feel the strong urge to #fomo back in. If you hodl or buy, the pullback draws your portfolio down even further. It's ALWAYS like that. You're not alone. It's impossible to time the market, to only sell the top and to only buy the bottom. And that's psychological torture for most.
Now, how do we prepare for this? In my experience the most important factor to avoid this feeling is a certain mindset that every trader should adapt: It's about having a plan that you have to internalize for your investment.
If you are a day trader you need to have a realistic plan that you put above all chart noise mentally. One plan could be: "I want to make 2% (or maybe $20) today." That's a modest, but doable goal in a stable market. So, when you reach your goal, you have to convince yourself to be happy about reaching your goal, no matter what. If the coin you just sold for a modest profit goes on to rise 100x, don't care about it!
IT'S YOUR DECISION to be HAPPY WITH YOUR TRADE! It's not about what else is happening in the market, but what you decide on. If you regularly have the feeling that your plans are too modest, adapt them slightly. Make the same plans for your losses. Tell yourself for example that you don't want to lose more than 2% (or any $ amount) of your day trading investment per day AND BE HAPPY no matter what if you achieve this goal. I repeat: It's your decision to be happy. Your happiness does not depend on the market. If you feel that you started a trade without a plan, be quick to make one or get out immediately.
If you're not a day trader but a crypto investor, a good move is to set time frames for your investment. I have been a holder of HBAR for years. I rode it up from 3¢ to its ATH of 57¢ and down again to 3¢ while accumulating on the way. Some people may think is silly, but I don't care because I stick to my plan of not selling before 2030. I have decided for myself that I'll be happy if I do this, no matter what. The time frame is rather arbitrary, though, but if you're convinced about the fundamentals of your investment, that shouldn't be a problem.
I hope that I could help you a bit to deal with the strong feelings you experience when trading a volatile asset like crypto. One last time: Be happy about sticking to your plans, don't make your happiness depend on market movements.
Cheers!
Your Chuck Wood
