Worry, Fear and Doubt.........Control It!
In business or any investment, to be successful one must be in complete control of their emotions. Worry, fear and doubt are the things that wander in our heads that do not allow us to be successful.
In trading, the one who has mastered controlling his emotions wins. You may not make every trade successful but overall your portfolio will be positive. We will continue to make mistakes and blunders but these mistakes will be from not sticking to a game plan, not properly reading an chart or just a bad move by not doing your homework. But it will not be from bad decision made from your emotions.
The proper attitude to have is not to worry about loosing money. If you have invested all you have in a venture then you already have made a mistake. Emotions drove you to think that you will be rich if this pans out. The IF is a big one. The successful guys out there today have made solid investments and were well thought out and planned. No grand slams just base hits and few homers here and there. Be in it for the long haul.
Investing with your life savings is like betting in Vegas with scared money. It never wins. Remember that the casinos all over the world are still thriving because emotional people are filling these places everyday. The house wins every time unless you are in control of your emotions. There is a time to take profits when a plan has been made and you stick to it. Once you stray from your game plan you are dead in the water and are left to continue on you own feeling or what your gut tells you. You're dead.
Knowing when to enter and exit an investment is the way to success. You need to establish and hold to this plan. Greed, another emotion, will kill you every time. You will base your strategy on a fantasy of what you will have IF you succeed in getting to your "self imagined" price point. Andi if your plan does not go as planned you are now double guessing yourself. Doubt in your abilities takes over. As it should, you strayed away from a well though of plan and went at it by the seat of your pants. Then fear and worry take over. You fear what is going to happen after you lost your investment knowing all the time if you lost you would be in deep you know what.
Now that fear, worry and doubt have taken over, you cannot even think straight and do not trust yourself to even make a simple trade. You got burnt on the last one and fear getting ripped again. Whats done is done, get over it. This is how you learn. Getting burnt allows you to go back and see where you made your mistake. Do not do it again! Study harder, get more technical savvy and learn how to be better. This will allow you to build confidence in what you are doing and pull the trigger on the proper buy in and selling points.
Who else knows this better than me. I got burnt more times that I can say. I had good plans going into trades when I was doing stock options but then I would get greedy and go off plan and loos my tail. I would buy in to high chasing prices and get left holding the bag. Doubt soon crept in and I could not make a simple trade to save my life. After losing a large amount of money I decided to stop and educate myself further. It was then I realized that my technical side was not what was the issue but me emotions. It took me a couple of years to get this under control by staying away from trading. When I first heard of Bitcoin, I studied it and realized that my knowledge of stock charts might help. It did but what has made this transition easy is that I have a better grip on my emotions. This has helped so much and I hope that if you are making bad trades based on emotions that you can get a grip on them and be a successful trader.
All the BEST!