Read This If You Suck at Trading.
3 simple reasons. 3 simple fixes.
Contrary to popular belief, most people actually understand the basic concepts of trading. They’re able to rationalize the do’s and don’ts and even understand the legitimate pros and cons of volatility.
They just get it.
But in the moment they freeze up.
The rational train of thought crashes into a firm brick wall. The calm, collected nature evaporates into emotion based turmoil.
Happens every time. Lucky for you, there’s a fix.
If you suck at trading, here’s why (and what you can do about it):
1. You're greedy.
Greed has been the downfall of every civilization. So, it’s not exactly a mystery as to why it’s the downfall of most traders.
As humans, greed is wired into our DNA. We thrive off dopamine and we can’t help but feed our dormant gambling addictions every once in a while.
I’ve had friends see a 100x in their face and refuse to take it because “it’s going higher”. I’ve seen people lose their entire networth gambling. I’ve pretty much seen it all and there’s one common theme I’ve noticed.
Lack of self-control.
Meditate, remind yourself, or even physically talk yourself out of it. Whatever you need to do, remember that when your dopamine is surging and you’re feeling greedier than usual, it’s probably time to sell.
The entire market is based on emotion. There are no exceptions.
If you only pay attention to this point and flat out ignore the other two, you’ll still be better off than most traders in the market.
2. You have no strategy.
This one is simple enough.
If you’re consistently losing, you may have no profit taking strategy.
Imagine a sports team never practicing plays or calling time-outs to restructure their strategy. You can’t play the game efficiently without strategy; and it’s extremely important for making profitable trades and replicating the process.
A profit taking strategy can be as simple as “_ was my entry, and come hell or high water, _ will be my exit.”
Profit taking strategies are different for everyone and every field, whether it be NFTs, stocks, crypto or even real-estate. I recommend spending some time looking into your field and customizing it to your specific needs.
3. You fall in love with your bags.
While this is much more common in the world of NFTs, you will still lose in any other field if you become emotionally attached to your asset(s).
Great examples of this happening in the retail-trading stock world would be the GME 0.00%↑ and AMC 0.00%↑ craze. Traders fell in love with the magic of the rare moment and became emotionally attached to the robinhood-esque "stick it to the man" movement.
Despite some people making life changing money, far too many lost more than they ever anticipated.
Don’t fall in love with your bags.
If you take these three points into account, I’d be willing to bet that you’d become a better trader, almost overnight. But there is no such thing as an “overnight” success. So make sure to form the habit of taking profits, controlling your greed and taming your emotions.
I’m rooting for ya. — Lite.