#B90X - DAY 32 - Fear, Greed, Goals, Trading Rules

b90x

#1

The best way to remain unemotional during trades are:

  • Understand what you fear
  • Understand how greed moves you
  • Create those goals!
  • Create trading rules!

Let us know what you learn about yourself in the comments below!


#B90X - Full Trading, Market, and Personal Psychology 10 Part Series
#2

Doing that research & setting out the goal for each certain trade/buy in has really removed that fear factor for me.
I don’t have that “wondering” what will happen feeling.


#3

Fear.
I’ve only done a handful of trades, most of them being long-term investments. The fear I’ve felt from those has been wondering if I should sell to take profit and buy back in on a dip or just leave it be. I’m also getting a lot of FOMO as Bitcoin keeps rising, same with the several potential altcoins. Definitely lots of room for fear to creep in but I’m trying to stay cool and not make any reckless decisions.

Greed.
I’ve been asking myself if I’m into crypto for the right reasons. Has greed taken hold? I want ALL the moneyz! ALL the Bitcoinz! I don’t like being greedy, it’s just… not me, I prefer being generous and helpful. Being in the current cryptocurrency space is tough, greed is rampant and I’ve had to keep myself in check a lot more than usual.

Creating goals and rules is the only way I see myself being successful with crypto, without those I’d be trading aimlessly relying completely on luck. If I’m feeling fear and greed about a trade, even with goals and rules, I like to step away for a few, let my brain wind down a little and come back to it later.


#4

Thank you @peter for this video. At the moment in a strange situation. First, I don’t invest with Brad money. I bought a few Bitcoin @ 12100 EUR. I didn’t set goals. The only thing I wanted ist that I don’t loose the money an make me profit that with all the other investments.
Intressting with all my others invest I “buy and forget” but with Bitcoin I’m checking every hour the course and have this fear when it drops under 12100 EUR (since the drop after Christmas is oszillating around this value).
Thanks to you now I know how to work to overcome this fear.


#5

This recent dip has really tested my discipline against fear. I am HODLing and watching my portfolio taking a 45% dip. I will continue to cost average on the way down, but it is painful. I do need to get better with my stop-losses and targets though. It is a reaction to past experiences when several flash crashes have triggered my stops, bounced right back and kept tracking up, leaving me on the side-lines. How can I protect myself against those?
Thanks Peter.


#6

Stop losses are good. It’s part of setting goals.

However, as you well know I’m a long term holder.

So I just hold when I’m indecisive.

Frankly I don’t often set stop losses because I rarely ever exit positions if I’m feeling strong about a coin. All up to you my man!


#7

Vids have been of a consistent high quality but for me this is by far the best to date, TA provides a great set of tools but without discipline our emotions will overtake our judgement. Keep a strong hand!


#8

This is just my opinion, but in this space the only trades that should have stop losses are coins you don’t believe in. I personally only swing trade with coins that have potential to be something, they are not my favorites nor my HODL/DCA picks but I have no problem holding them during dips like this because they are still healthy projects moving forward and I am expecting to make a nice profit on each eventually. Yes the dip messed with my timeline but we’ve got to be flexible and resilient to survive for the long term. Happy trading and good luck!


#9

Great advice, Thanks!


#10

Another great video. Thanks


#11

One rule that I have. Is to ask myself what I learned from this trade?


#12

Fear

  1. I used to have tons of fear when I first got into this market because I was unfamiliar with everything.
  2. Fear is a good thing, a very good thing. It motivates me to continue to improve and learn from others.
  3. As I have been in this market, one thing I learned is that fear is inversely correlated with the amount of research; the more research I do on a coin before investing, the less fear I have in my position.

Greed

  1. I’m still struggling with this.
  2. Can others input on their disciplines in taking profits? (For an example, I have got into ICON from the beginning. And, I have been buying the dips. At what price target are people going to take profits? How much do I sell when I do take profits?
  3. At what % are people satisfied with for each investment? (In large (top 20 coins), medium (top 100 coins), small cap (top 200 coins) investments?)

Goals

  1. I’ve set general goals for my portfolio targets for each year but ain’t sure if they are accurate or not due to the enormous volatility of this market. Technology and valuation of coins change so drastically that it is hard to see whether or not my target price for the end of the year is accurate. Should I be setting monthly, quarterly goals? How does everyone set their targets for their long term holds?

Trading Rules (for me)

  1. Don’t panick sell
  2. Don’t FOMO buy
  3. Research before buying.
    ICOs: Team, MVP, community & hype, market cap, team vision and goals, token utility and usage that drives demand, token allocation % to public, partnerships and investors that are backing the project, reputation)
    Coins already on exchange: same as ICOs. In addition, Price (do I have enough margin of safety on my investment?)
  4. Need trading rules for selling and exiting positions. Please advise.

#13

Rules for trading have to be on you.
I set pragmatic goals: what do you need to buy X?
For me for example: I set a goal for a vacation. I need $12K for that. So my exit is $12K


#14

Fortunately, I don’t think I will experience as much FUD just because I’ve accepted that anything can happen at anytime in the crypto space. I’ve budgeted enough money to cover all of my living expenses for an extended period time (and then some!)

There are several of things I could work on moving forward:

  1. Establish a set of criteria for fundamental analysis before investing so I can have a baseline comparison and standard understanding of different cryptocurrencies
  2. Begin using the Coin Template so I can reflect on my past performance to further hone and sharpen my trading skills moving forward
  3. Gain a better understanding of technical analysis fundamentals before I begin making more frequent trades

thanks Captain!


#15

Another excellent video with information that should be mandatory for everyone before even adding fiat to an exchange for the first time. I’m going to have to go through the alt coin tracker and coin review template properly before doing any more trades. I have gotten more disciplined since I started dealing with crypto, but so far I have not set any clear rules about what I need to do, so that’s at the top of my list now.


#16

Rules rules rules! The emotional aspect here could not be repeated enough. The eager mindset of “crypto bug” can really hurt people if they don’t truly assess what they are doing when buying in or dropping out. The good thing is, if you stay in this long enough, the market fluctuates so much that you will get plenty of “emotional practice” throughout the year :slight_smile:


#17

Applicable to many things in life and not just trading or Crypto!!! Great insight! Thanks Peter!


#18

this is one that everyone will struggle with. lol


#19

I’m glad I start before the bearish movement. I learned how easily money can come and go. ICO’s in the bear market is terrible. Let’s see what happens in the next couple of weeks!


#20

I’m a HODLer 90% of the time. My goals are accumulating the coins and tokens I find attractive and taking profit later in the year as appropriate. If Bitcoin skyrockets there will be money to be made as the alts will follow its lead.