Quote from: Canis Majoris on February 20, 2018, 09:50:28 AM

An active day trader myself (sort of), I often think about common mistakes people make in trading. And it seems that I have traced back most if not all such mistakes to their root cause. In a nutshell, it all comes down to being unable to back out if something goes wrong. For example, you buy a few bitcoins at a December high and expect the price to continue rising, which is kind of obvious. Instead, the price starts crashing down and you find yourself in a situation that you didn't envisage or consider beforehand. So your best option would be to bring things back where they were as fast as possible even if it means some loss.

It is not so much about placing dumb stop-loss orders or other trading techniques aimed at minimizing losses as about your mental disposition or general attitude to immediately get out of what can be loosely called a decision limbo when you basically don't know what to do. In other words, search for the exit where the entrance is and do that fast.

I don't really get what you're saying here. But I'm assuming that you're saying that people should ready themselves for anything and even if when SHTF they have a clear strategy of what they want to do instead of following their emotions?

If that's true, then yeah. It's definitely one of the skills you have to have trading and speculating on bitcoin.

It's all psychology. If you bought in december and sold in January, then you would have made out a 70% loss. It's tempting to sell when markets are tanking like that for sure. Either have a stop-loss, or just hold it through, and unless you really need the cash or in some extreme circumstances, don't liquidate your position. That's my strategy at least, dunno about you.