Don’t let your emotions get in your way of Trading.

Start of February edit: So far this tactic mentioned below does not seem to work. I fully followed my emotions and I made really bad trades. It has being a really painful experience but I have learned a lot. I left the original post up so that I can read it and see how foolish it was to just trade with Emotions the result is catastrophic. I have being trading however on USA Markets and not on Bitcoin markets. I am not willing at the moment to give away any of the hard earned Satoshis I have made.

I developed a system through the pain that seems to bring results which I am going to further exercise and improve and post an update on March post.

End of January edit: So far I have not made any Crypto trade this year. Just following my standard monthly BTC buying tactic as mentioned here.

Unfortunately our emotions blind us and force us to make irrational decisions when our money is at stake. When I am trading I always hear an inner voice telling me what I am doing is wrong.

There is however another voice that comes from deeper within that gives me the belief that what I am doing is right.

Sometimes I listen to both of these voices and position myself so that I can satisfy both of them. Sometimes the inner voice is right and sometimes the outer voice is right.I have come to believe that all this is just a game of chance and I am just paranoid.

There are just so many variables to consider when trading. It is a kind of freedom that actually constricts us, so we need to set some rules in order to make sense of it

Every single decision I make is based on the fact that I know nothing. I am putting myself out there with the goal of minimizing the potential damage and maximizing the potential gains that can be made.

History repeats itself but in unknown intervals so that we cannot base our decisions on her. What goes up has to come down based on the law of physics but the timeline of the rise and fall is unknown so for us it makes no sense to follow this and similar rules.

How can we make sure that our portfolio will continue going up regardless of what the market does ? Theoretically this is possible since we can both gain or lose by the market going up or down.

But maybe this is the wrong question to ask. We want a portfolio that goes up regardless of what is happening around us. In a way we want our portfolio to defy the rules of physics.

Can it be that we have being asking the wrong questions therefore we found no right answer?

How about a “liquid” portfolio that just follows the market, or maybe a portfolio that does the opposite of what the market does.

For the first question we have already an answer with Index investing. We follow the market and we stop there. We buy a ticket and play along. And we of course cannot do the opposite of what the market does since we do not know what she will do.

What if we trade only based on emotions ? My gut feeling tells me buy and then my gut feeling tells me sell. How would this strategy work ? Not really good because everyone tells us to not trade with emotions.

So I decided to do just that. For 2019 I will trade with emotions. But not the kind of emotions of taking revenge or making the wrong right.

I will just follow the flow- the sum of my emotions so to say – and see where it takes me.

Leave a Reply

Your email address will not be published. Required fields are marked *