#B90X - DAY 34 - Management of Your Emotions

b90x

#1
  • Take a moment and consider how you trade or invest

  • You may base your trades on fundamental or TA

  • You may trade based on hunches about economic and political trends

  • You may use inside information like your favorite youtuber

  • You may just base your trades on “hope.”

  • Remember how you felt the last time you placed an order?

  • Were you anxious to jump in or afraid of losing?

  • Did you procrastinante before clicking the mouse?

  • When you closed the trade, did you feel elated, resentful, humiliated, regretful?

These are feelings that THOUSANDS of traders have that merge into huge psychological tides that move the markets.

  • The majority of traders and investors spend most of their time looking for good trades.

  • Once they enter a trade, they lose control and either squirm from pain or grin from pleasure.

  • They ride the emotional roller coaster and miss the essential element of winning! - MANAGEMENT OF YOUR OWN EMOTIONS

  • Your inability to manage yourself leads to poor money management of your finances, positions, and decisions in the market.

  • If your mind is not in gear with the markets, or if you ignore changes in mass psychology of crowds, then you have no chance of making money trading.

All winning professionals know the enormous importance of psychology in trading. All losing amateurs ignore it.

  • TODAYS B90X - document your next trade. give us the BEFORE, DURING, AFTER emotions. Let us know below! Be honest! we love giving feedback to help you or to ask you great questions about how to be a more rational and logical investor. Remember, the cryptolifestyle is a long haul.

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

Here is my “contribution” to the B90X Program - My last Trade.

In my personal ‘Coin’ clean up I discussed Here this morning. I had just over $22 USD in an ‘XYZ’ Small cap coin I had picked up and stowed in a wallet somewhere on my computer. I was not interested in it, it was a ‘ruminate’ of a pervious idea I had back in June. An excitement I completely forgot about.

In Reality - had lost 38% of it’s value of $35 USD when I bought it. My thought :thinking: was in ‘cleaning up’ my process - it was worth More to me to be ‘rid’ of it (time value) then to just HODL yet another ‘XYZ’ Coin. Time Management.

It was a ‘dust’ trade for BTC - I sent to Bittrex two weeks ago. I was Glad to be ‘rid’ of it! :slight_smile: So I decided to “Play” with it like “Pizza Money” :pizza: - Long story - Short. 5 Trades latter I had turned the $22 USD into $144 USD. (Just playing around) then the last trade went to around $122 USD in an ‘XYZ’ Coin. I had FUN :tada: :balloon: doing this - it wasn’t a :moneybag: “Real Money” scenario for me. :money_mouth_face:

I evaluated, :thinking: and last night (around watching bitsizebitcoin & pub crawling - reviewing my goals) I made a decision of “Alignment”. :cowboy_hat_face:

I sold ‘XYZ’ bought NEO (at cost) and “wisked” it away to my NEON Wallet to earn GAS.

neo-wallet

My emotion sanctification of a right decision.

My Goal is LT. My investments vs. my Trades - are always for the LT.


#3

Thank you sir for giving us such a great first pass!

It is so important to retrospect. If we don’t “think” and “remember” how we behaved (potentially inappropriately), then we’ll be doomed to repeat our own mistakes!


#4

FOMO (Fear of missing out): I watched somebody talking about ADA (Cardano)… So I jumped because it looks like it is a great project (medium/long term). I “assumed” 605 Satoshis was a deal. So, I transfered $100 in btc to Bittrex and made got ADA at the 605 Satoshi level… This morning it is 528 Satoshis… So, clearly itwas a bad short term call. I feel scary now with fear to loose money (I am lower maybe 20%, from few hours ago). So, I feel like I don’t know anything (or made the homework: technical Analysis, etc, etc) before jump in. I should be careful before I jump in from a youtube “pump”.


#5

Yes. Even with me. I get excited… but please. Do your own research BEFORE you enter!
Don’t take my words for it!


#6

I was pumped for hours when I sold my NEO at 60% profit and it then dropped back to 25% and bought back more.

I was also excited for hours when I read the tweet of the TenX CEO 16 min after he tweeted (it was up 15% at that point, I bought for 6500 ish USD in TenX and sold it 15 min later at a 1800 USD profit, when it was up around 50% ish)


#7

I did the exact same thing! And obviously now I’m thinking - should I just take the L and jump on to the next big thing to recover the losses - which only compounds the problem even more. FOMO is real!


#8

Scary man!

Right now, I decided to get a hold of more “secure” old BTC…

I am keeping my bad buy from last night (ADA) since it is so low now (more than 30% down from what I bought) so i don’t want to just loose this money since I believe it should go back up at some point.

Anyways, I exchanged ETH to BTC… trying to see what happen regarding the two forks bitcoingold and 2x coming soon.


#9

Hi Peter, I am getting calm when I make my trades, finally, but this is due to a better awareness and knowledge.
Today I checked the charts, made a little analysys and chose to buy 40 PAY @18530 BTC.
My goal is to make with this around 5%, so I am checking how it is going but he had just a shy reversal for now.

But in the recent past (even one week ago) I made terrible mistakes :wink:


#10

We must learn from our mistakes! It’s what makes us a better person overall! Embrace them!


#11

Topped up on OMG earlier today.
Felt pretty good as i know it hasn’t been this low in a while.
Even though it could go lower, i feel confident in the buy as if it reaches another low set point I will buy some more as I believe it’s a good go.

The feeling is similar to when NEO dumped around the china FUD time & was able to top up near the $15 mark…same plan was if it went to a certain point lower i would buy in again.


#12

I only have a few trades under my belt but here are some of the emotions I’ve felt so far.

Before
Indecision (to buy or not to buy | to sell or not to sell)
Fear (is it going to crash after I buy? | is it going to moon after I sell? | am I going to miss out?)
Procrastination (buy? I’ll just wait to see if it dips more | sell? I’ll just wait to see if it goes up more)

During
Hope (please, go to the moon | please, don’t crash)
Fear (is it crashing?! | is it mooning?)

After
Relief (it is done!)
Excitement (I own Bitcoin! Bitcoin to the moon!)
Regret (should I have waited? | if I did this or if I did that…)

I understand that being aware of my own emotions helps with understanding much of the market movement and that it’ll take time, practice and good planning to lessen/manage those emotions when trading. Important stuff to think about for sure.


#13

I just sold some of my ICX holdings.
My emotion before was indecision and doubt so I thought about it for a long time.

My reasoning for selling out was that the CME futures contracts are going to expire on the 26th.
We saw the price of BTC pump up before the CBoE and CME futures to $17k and $20k on the 8th and 18th of December respectively. Recently we saw the price dip to $9.5k when the CBoE contracts finished on the 17th of January so I’m expecting something similar to happen on the 26th.

ICX price dipped as the price of Bitcoin dipped last week, it looks like it is following a similar pattern this week with the last couple of dips in the BTC price corresponding to the dips in the ICX price.

I only sold part of my holdings because it might not play out the way I think, with ICX Main Net due to be launched, and I want to keep some ICX in case it goes to the moon. I find staggering buys and sells minimises risk and FOMO.

During the trade I felt calm, this isn’t always the case, I thought a lot about this trade and it wasn’t an impulsive decision. After the decision I felt worried that I made the wrong decision and that the price looked like it was going up, then down, then up… I know that I should not worry about the price until at least tomorrow, it should take three days before I find out if I made a good decision. Logging out now.


#14

Catching up because I was busy yesterday… I get a little FOMO and FUD when I’m thinking what to do, could if’s, should haves, but I don’t let those emotions get through and influence me. I think this last week has been a good example. I was not effected, well briefly, but I didn’t even get worried. “Tis but a scratch!” So far I have played my cards well and my intuition has been in my favor when I sell, but I overthink the little stuff and hold off waiting for the right moment, but then the moment doesn’t come when I think it should, or I miss it… So I just say to myself, forget that little short term opportunity, focus on staying in for the long term and quit trying to make a quick small profit day trading… I have learned recently and I have other priorities to manage. I enjoy crypto and staying up with DCTV and B90X but I need to ease up on trying to trade, just stick with DCA, and each day get that much closer to the Moon!


#15

My last trade was to increase my position in ADA in this bear market (at a discount).
Before
Fear of the market continuing to crash, not knowing where the bottom is. Fear if I am allocating the right amount to the right coin. Was the decision influenced by bias or emotion? etc…
Balanced with confidence that I am cost averaging on the way down to insulate myself, and in the long-term, I will end up with a larger position at a lower average cost.
I battle the fear with research. What is the plan? What is the right thing to do long term? Do I believe in the coin? what do the charts tell me about my new entry point?
My spreadsheet helps with the research. It gives me my current position, the impact of cost-averaging, the other coin info and where my target is. It does not quiet the fears, but if I acknowledge my state of mind, I can use the research and strategy to rationally deal with it.
During
I want to second guess my actions, but I push through and stick to the plan. What drives me during these feelings is knowing that definiteness of plans and definiteness of purpose will always be more successful then acting on emotion and gut. I will fail over time if I act on emotion/gut feelings, and that is scarier to me than following the plan.
After
Once again my emotions want to second guess my mind. Buyers remorse, bad timing, missed opportunities. I Push through it because I have to. I know what is at stake here. After all, the long-term gains far outweigh the short-term pleasure (#b90x :slight_smile: ) of wasting this investment on unnecessary “stuff”. The money I invest with is money that I either get from mining or stuff that I cut out of my life, so my frame of mind is: let it work for me, and if I lose some, it will still grow more over time then what I was going to use it for.

After all that: I definitely ride a rollercoaster of emotions, everytime! At some point though, I came to trust my plan, and that is what stabilizes me.

“Success usually is but one short step beyond the point where one quits fighting.”~ Napoleon Hill


#16

I decided that Verge is a possible buying opportunity if the price drops below 0.0000061 BTC. Since Verge is not a featured coin in coinpuffs, my goal is not to accumulate more Verge. I just want to sell it at a higher price to increase my bitcoin.

At this time I’m just waiting for the price to drop.

Today February 12, 2018. I did a quick trade using the trade analysis I have learned the last days in this lessons, I noticed it could be an opportunity to buy son Verge even without reaching my price goal of 0.0000061 BTC. I purchased some Verge at 0.00000628 and then sold it at 0.00000641.

Right now I feel right about my trade. Not only because I increased my bitcoin, but because I was prepared to buy more Verge if the price of the coin dropped even more.

I think that reaching the point that you see a positive thing no matters where the directions of the market take you, is what makes you a more confident trader.


#17

I had Fomo and excitement with antshares/NEO and OMG because I know that the Asian economies have been strong and when I researched the projects they seemed pretty solid in technology and different from what other coins were doing at the time.

I made some decent money short term so I was happy with that. I then got some FUD and bought some miners for a tangible asset. Hodling those coins long term would have been a more profitable investment by this time.

I had mad fomo with ICX in November so I eased my way into that investment. My only regrets are that I didn’t buy more with cash then when it was so cheap and that I didn’t hodl BTC all the way up to $19k based on discipline and indicators. However, I’m very happy with my ICX investment as it has multiplied my previous BTC holdings. I’m getting back from a two week vacation now realizing I could have sold ICX when my grandparents told me to at the previous ATH, and tripled my holdings by rebuying at this low support level. I thought ICX would go up with Genesis conference but I should have known better with BTC indictators and end of BTC futures markets. Anyway, I still really enjoyed my vacation, it’s fun to catch up on the ICX threads, and after the Genesis Conference (I still haven’t watched it yet ><). From what I read in Peter’s summary I am very confident with my investment. Looking forward to getting back to my slow paced town life for a few weeks to liquidate some assets, buy more ICX and continue to research ASIC mining developments.

Emotional intelligence is something that interests me as it’s so important for a healthy lifestyle, as an asset in business and life. This is one of the greatest returns on investment that I have been cultivating in crypto and I hope to share that with my family, friends, and people that I meet on this journey of life.

I’m thinking more long term these days and it’s changed my life. Perhaps it is because I am reaching an age of biological maturity as a male, but I think that research, practice, discipline, and positive role models are also key.

Thanks to everyone here for giving positive advice, feedback, and community :slight_smile:


#18

Date: 2/16/18
ETH: $960.57
ZIL: $.06
Bought: 2655.10 ZIL

Dollar cost averaging since 2/1/18
Total invested: $602.23
Total value as of 2/16/18 : $673.02
Profit: $70.79
% increase: 11.75%

There’s really not much emotion going on here… putting in .1 - .2 ETH every week on Friday. Putting .1ETH if I feel token is overbought at the moment, closer to .2 ETH if I feel the token is closer to oversold. The DCA amounts are small in comparison to overall portfolio, hard to get emotional with these systematic trades.

Reason for investing in ZIL: I found project to be unique in its technology, team is solid, early in its development stages and has room for tremendous growth if it reaches its goals. The hype on this project is pretty high. It’s a little riskier investment since it is very early in its stage of development but I think the team is solid enough to accomplish what they set out to do. Market capitalization has much room to grow as well even after its extremely successful ICO.


#19

My last trade was putting fiat into ETH on Kraken.
I had transferred the fiat via bank the day before and gotten an e-mail that it went through, but due to now being more used to the market I didn’t feel that it was urgent to go check Kraken for prices. I’ve at least got a little bit better control of my emotions in this regard.

Later that day I needed to go away from my computer for an extended period, and would not be able to do any trades if I wanted until late in the evening. I checked the price of Ethereum, it was pretty low (660 EUR), the last time I bought in a month earlier it was at 800 EUR. I started to feel the FOMO, but thought to myself that I’ve seen similar things in the past, and it might just go lower some other time. I checked the MACD and RSI, and both of those pointed to the trade almost being perfect right now. RSI was at ~35% (up a little from nearly 30% earlier) and a MACD had just passed a Golden Cross. At this point I felt that if the market went up during the day, I could be paying 700-750 EUR for ETH if I waited until the evening. I went for it at market price since I had no way of knowing if it would go down 5 EUR or 50 EUR during the day, so I didn’t want to risk the order not filling at all when I was away. I felt really good when the order had went through, because my newfound knowledge of TA told me that this wasn’t just another FOMO trade, but there was actually some rational behind it.

When I came back later that evening I checked the price of ETH, and it was up to like 710 EUR, which felt even better. During the time I was away however the price had temporarily went down to 635 EUR, meaning I could’ve gotten in at a better price. The first limit order I had in mind however was to try for 600 EUR, and I am glad I removed that order since it would not have gone through. Although I felt a bit bitter about buying it at a higher price than necessary, it didn’t last very long since I had no way of guessing it would go that far down, and I had no access to a computer to make the trade. If I had put a limit order too low I would’ve lost a lot more than buying it slightly above the low, so all in all it felt like a pretty good buy. It’s definitely my best thought out trade to date, so I feel like I’ve learned a lot in a short amount of time.


#20

My last trade was buying more BTC as well as LTC. While I’ve expanded my view on the other alt-coins out there in the last month with the help of the pub, I wanted to be mindful that I was still investing in the coins I started with. Also, adding more to my pool of existing coins allowed me to bring down the DCA of my overall positions.