Losing your hard earned money on trading is one of the traumatic experiences that might happen to you. This is usually happen when you are so bullish on the coins you are investing. Here are my thoughts on how to redeem you from this kind of experience.
https://i.imgur.com/5n8DTcP.png1. Acknowledge that you did something wrong There are no other ways to start the process of redemption by accepting the fact that you made wrong decision. You need to accept that every once in a while we do poor judgment. It is important; when this thing happens to us we are ready to humble ourselves that we committed mistakes.
2. Identify the problems
a. Lack of experience I was a successful trader in stock market winning mostly of my trade. But playing here as a day trader in crypto is something new. Your success in stock market doesnt guarantee you success in BTC.
b. Playing aggressive Since I have too much ego in my head I put all my money in one coins only. I didnt consider altcoins to hedge risk from BTC. There are altcoins who doesnt affect much by this massive correction.
c. Didnt follow my trading plan Foundation of trading practice is to follow the plan you have originally set. Your exit strategy is one of those important decisions you will made. It composes of selling and cut loss strategy.
3. Courses of actions a. Never stop growing (learn the new market) In every new things to we do it is very important to know our strength, weakness, opportunities, and threats (SWOT). Money is involved in every trade which make, which gives us reasons why we need to study the every aspects of cryptocurrency.
b. Follow religiously your trading plan There some trader who doesnt have trading plan, in my case I have one which was not followed. Trading plan was based on your personal experience in trading. In time these plans was polished and test its effectiveness. If followed properly chances of success are increase.
c. Never stop trading If this single defeat dictates me to stop then the real loss will happen. These circumstances should ignite us to continue, make this experience to hungrier for success.
d.Diversify your portfolio Never do all in trade. These will gives you room for another alternative once the other coin doesnt do well. Balance your portfolio composes of your well research coins.
After careful assessment of my situation, I believe that once a trader will always be a trader. I may lose sometimes but will rebound harder and stronger.
Remember merits are perishable if not useEvery one has their own strategy to face and fix their method and we can do that anywhere and anytime. As long my experience, we can fix our strategy by not do the same mistakes and accept the result. Even lost $ 2.000 or more it doesn't matter as long we not do the same mistake next time. Trader/ investor mistake on real market mostly not because they don't have a good strategy but only can't control emotion and greedy.
