This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. One of the most common mistakes that traders make is to actively attempt to “earn back their losses.” This is a losing mentality and rarely ends well. It's the same as a poker player going on tilt. There are a few reasons that this strategy never works.Fixating on a bad trade often leads to revenge trading. Revenge trading is taking poorly planned trades on an asset to try to recoup losses. In reality, it makes no difference what asset you lose or gain money on - it’s probably better to close the chart on the loser and find a better trade elsewhere. This is easier said than done.It’s never a good idea to take a fresh trade on the same asset right after you take a loss. I used to have a rule that after closing any trade, whether at a loss or in profit, I would close that chart for 24 hours. This stopped me from revenge trading.WHAT HAPPENS AFTER YOU CLOSE A TRADE IS IRRELEVANT!I used to struggle very hard with revenge trading - entering back into a bad trade on an asset, simply because I had lost and wanted to get my money back. This is irrational - it makes no difference if you make a gain on BTC or ETH or USD. Revenge trading an asset over and over when there is likely a better opportunity elsewhere is a guaranteed way to lose money. Once you have lost, forget about it, take a step back and reevaluate when you are no longer emotionally attached to the trade.This cuts both ways. When you take profit, price often continues in the direction of the trade and you feel like you “sold too early.” This used to cause me to buy in again higher, only to see price reverse. This almost ALWAYS ends up being the top right when you buy back in, right? Once you have taken profit at your target and executed your plan, it makes NO DIFFERENCE what happens. Buying back into the same asset because of FOMO will inevitably erase the gains from your previous, well-executed trade.If you follow my 24 hour rule, it will work wonders on solving this problem. You should try it.In This Issue:Avoid Revenge Trading At All CostsBitcoin Analysis - IntoTheBlockAltcoin ChartsCensorship Resistance MattersColorado Becomes More Crypto FriendlyTwitter Enables Ethereum TippingThe Wolf Of All Streets Podcast Ft. Michael CarasMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #438 - Avoid Revenge Trading
The Wolf Den #438 - Avoid Revenge Trading
The Wolf Den #438 - Avoid Revenge Trading
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. One of the most common mistakes that traders make is to actively attempt to “earn back their losses.” This is a losing mentality and rarely ends well. It's the same as a poker player going on tilt. There are a few reasons that this strategy never works.Fixating on a bad trade often leads to revenge trading. Revenge trading is taking poorly planned trades on an asset to try to recoup losses. In reality, it makes no difference what asset you lose or gain money on - it’s probably better to close the chart on the loser and find a better trade elsewhere. This is easier said than done.It’s never a good idea to take a fresh trade on the same asset right after you take a loss. I used to have a rule that after closing any trade, whether at a loss or in profit, I would close that chart for 24 hours. This stopped me from revenge trading.WHAT HAPPENS AFTER YOU CLOSE A TRADE IS IRRELEVANT!I used to struggle very hard with revenge trading - entering back into a bad trade on an asset, simply because I had lost and wanted to get my money back. This is irrational - it makes no difference if you make a gain on BTC or ETH or USD. Revenge trading an asset over and over when there is likely a better opportunity elsewhere is a guaranteed way to lose money. Once you have lost, forget about it, take a step back and reevaluate when you are no longer emotionally attached to the trade.This cuts both ways. When you take profit, price often continues in the direction of the trade and you feel like you “sold too early.” This used to cause me to buy in again higher, only to see price reverse. This almost ALWAYS ends up being the top right when you buy back in, right? Once you have taken profit at your target and executed your plan, it makes NO DIFFERENCE what happens. Buying back into the same asset because of FOMO will inevitably erase the gains from your previous, well-executed trade.If you follow my 24 hour rule, it will work wonders on solving this problem. You should try it.In This Issue:Avoid Revenge Trading At All CostsBitcoin Analysis - IntoTheBlockAltcoin ChartsCensorship Resistance MattersColorado Becomes More Crypto FriendlyTwitter Enables Ethereum TippingThe Wolf Of All Streets Podcast Ft. Michael CarasMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO