This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Note: I have moved the charts back to the top of the newsletter. I have had a number of complaints about them being at the bottom and gmail truncating the emails. You can always click the link gmail provides to read the entire email.Being a successful trader boils largely down to your ability to identify and control your emotions. Here are 6 common emotions experienced during trading.FearFear is one of the two most frequently talked about emotions in trading (greed, which comes next, is the other one). Fear manifests itself in a number of ways in trading and it can be the cause of many trading mistakes.The fear of losing lets traders delay the realization of a loss, which then turns into much greater losses, and the fear of giving back profits which make traders close winning trades too early. There are many facets of fear in trading.GreedGreed is supposed to be good, but when we look at the hard facts, greed often causes a number of impulsive trading decisions that should be avoided.Traders who are influenced by greed often don’t adhere to sound risk and money management principles. Greed also reinforces the gambling mindset which describes trading without set rules and based on impulsive decisions.HopeHope, fear and greed often come hand in hand. Traders who are in a losing position often show signs of hope, when they delay the realization of a loss and give a trade more room to breathe. Another example of hope is when traders try to make up for past losses and then enter a trade with a position that is too big and not according to their rules.Excitement / AnxiousAny touch of arousal when trading is a sign that somewhere along the line, you went wrong. When you are overly anxious when you are in a trade, it is often a sign that your position is too big, you broke your rules or that you shouldn’t be in that trade.Keeping track of your arousal level and asking yourself why you feel anxious or excited can often help you get out of trades where you shouldn’t be in the first place.BoredomAlthough boredom is more a current state than an emotion, it is worth pointing it out. Traders who are bored also often lack focus. A sign that you lack focus is when you find yourself going through the same instruments and time-frames over and over again without really knowing what you are looking for. Also, when you miss trade entries, because you weren’t paying attention, browsing the internet or doing something else is a sign that your focus is not where it should be.Get your priorities straight and when you are trading, don’t engage in any other activities.FrustrationFrustration is often the cause of trading mistakes that result from any of the previously mentioned emotions. When traders miss trades, violate their rules and lose money, take too much risk and lose too much money, or see what they should have done, frustration starts to take over. Frustration then reinforces all the bad negative behavior patterns that a trader struggles with anyways and intensifies the problems a trader has.Learn to identify and control your emotions and you will become a better trader.In other news:I am making it a practice to single out a trade each newsletter and fully analyze the plan and result - positive or negative. I think this is the most useful educational tool possible and a number of you have responded that you really like this exercise.. Today I am thoroughly reviewing my recent losing trade on BitcoinI used to keep a weekly, public and transparent trading journal on Cointelegraph. Every single trade I took. I think it's really important to share and dissect the losers, to help both myself and others.Just a reminder to check out thewolfofallstreets.io. I try to “fill the gaps” between newsletter with more information and news on the site.A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What’s In This Issue?Bitcoin Thoughts And AnalysisAltcoinsTrade Management Case Study - BitcoinSPAC 101Tim Draper Reveals His Crypto HoldingsTesla “Battery Day” Arrives with Mixed ResultsThe Wolf Of All Streets Podcast Ft. Joe VezzaniChart RequestsMy Recommended Platforms And Tools
The Wolf Den #98 - Emotions And Trading
The Wolf Den #98 - Emotions And Trading
The Wolf Den #98 - Emotions And Trading
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Note: I have moved the charts back to the top of the newsletter. I have had a number of complaints about them being at the bottom and gmail truncating the emails. You can always click the link gmail provides to read the entire email.Being a successful trader boils largely down to your ability to identify and control your emotions. Here are 6 common emotions experienced during trading.FearFear is one of the two most frequently talked about emotions in trading (greed, which comes next, is the other one). Fear manifests itself in a number of ways in trading and it can be the cause of many trading mistakes.The fear of losing lets traders delay the realization of a loss, which then turns into much greater losses, and the fear of giving back profits which make traders close winning trades too early. There are many facets of fear in trading.GreedGreed is supposed to be good, but when we look at the hard facts, greed often causes a number of impulsive trading decisions that should be avoided.Traders who are influenced by greed often don’t adhere to sound risk and money management principles. Greed also reinforces the gambling mindset which describes trading without set rules and based on impulsive decisions.HopeHope, fear and greed often come hand in hand. Traders who are in a losing position often show signs of hope, when they delay the realization of a loss and give a trade more room to breathe. Another example of hope is when traders try to make up for past losses and then enter a trade with a position that is too big and not according to their rules.Excitement / AnxiousAny touch of arousal when trading is a sign that somewhere along the line, you went wrong. When you are overly anxious when you are in a trade, it is often a sign that your position is too big, you broke your rules or that you shouldn’t be in that trade.Keeping track of your arousal level and asking yourself why you feel anxious or excited can often help you get out of trades where you shouldn’t be in the first place.BoredomAlthough boredom is more a current state than an emotion, it is worth pointing it out. Traders who are bored also often lack focus. A sign that you lack focus is when you find yourself going through the same instruments and time-frames over and over again without really knowing what you are looking for. Also, when you miss trade entries, because you weren’t paying attention, browsing the internet or doing something else is a sign that your focus is not where it should be.Get your priorities straight and when you are trading, don’t engage in any other activities.FrustrationFrustration is often the cause of trading mistakes that result from any of the previously mentioned emotions. When traders miss trades, violate their rules and lose money, take too much risk and lose too much money, or see what they should have done, frustration starts to take over. Frustration then reinforces all the bad negative behavior patterns that a trader struggles with anyways and intensifies the problems a trader has.Learn to identify and control your emotions and you will become a better trader.In other news:I am making it a practice to single out a trade each newsletter and fully analyze the plan and result - positive or negative. I think this is the most useful educational tool possible and a number of you have responded that you really like this exercise.. Today I am thoroughly reviewing my recent losing trade on BitcoinI used to keep a weekly, public and transparent trading journal on Cointelegraph. Every single trade I took. I think it's really important to share and dissect the losers, to help both myself and others.Just a reminder to check out thewolfofallstreets.io. I try to “fill the gaps” between newsletter with more information and news on the site.A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What’s In This Issue?Bitcoin Thoughts And AnalysisAltcoinsTrade Management Case Study - BitcoinSPAC 101Tim Draper Reveals His Crypto HoldingsTesla “Battery Day” Arrives with Mixed ResultsThe Wolf Of All Streets Podcast Ft. Joe VezzaniChart RequestsMy Recommended Platforms And Tools