Trading the financial market comes with a lot of discipline but the most important discipline one needs to attain is the emotional, mental and psychological discipline. While we are in the bear market mode, I saw a tweet of a picture of someone’s trade who is fixed on longing the market even though he is losing.
The market is in an obvious downtrend its wise to either follow the market trend or don’t trade at all or better still take your loss. When I used to trade the Forex market, I used to be a fan of longing, but after doing my technical analysis, I stuck to selling resistance and buying support when I get my indicator candles right which are my reversal candles.
When I place a buy and the market starts selling, I get emotional and start getting angry at why it’s not going my way. Most times I refused to set a step loss because I want the market to move my way. Mind you Forex trading is like future trading.
Today I saw a tweet of a bitcoin trader showing their market position and how much they are in loss, mind you this guy was trading future. Future trading and spot trading are two different things, future trading is more like gambling or like forex trading, while spot trading is buying and selling of an asset.
When you trade future you are gambling that the market is either going to long or short, if the market longs when you short, you start losing and if it continues longing, and your margin call is high, you can get liquidated and lose all your money. But on spot trading, when you buy an asset, you own the asset, even if the value of the asset goes to zero, you still own the asset but it’s valueless. There is hope that the asset can bounce back like we saw with the Luna Classic. But on future trading, when your account gets liquidated, that’s the end.
Emotions In Trading Future
If you are trading futures, you know that when you click that buy or sell order button, you can either wait to be in profit, or stop your loss when you are losing too much to avoid total liquidation. Sometimes pride creep in and you feel like taking your loss is being too weak in trading, if you don’t take that loss, you can get liquidated and lose all your money. Even if you trust or believe in that trade so much, if you don’t have enough leverage or liquidity to hold the trade, you can get liquidated and lose all your money.
But in spot trading, when you feel you are losing too much and you are tired of watching the value of your asset sink, you can easily close your wallet app, set a price reminder and wait whenever the price triggers the alert. You can’t get completely liquidated if you hodl, when the market keeps dipping, you can always buy the dip if you believe in the project so much.
Crypto Influencers & Their Deceits
If you want to lose money in the financial market, the easiest way is to start listening and taking financial advice from crypto influencers or crypto YouTubers. These guys don’t know what they are saying, they are content creators, it’s their job to create content and they are ready to say anything to create that content. Most times they will like to tell you what you want to hear so that you can watch their videos and click the like buttons or subscribe buttons.
Most of them have a mentorship program where they teach people crypto trading for some fees. Most of them make more money from teaching people than they actually make trading the crypto market. Few months ago, most of them where quick to predict bitcoin to $100,000, ETH to $10,000, as a matter of fact, someone predicted bitcoin to hit $600k and went around and sold all their bitcoins. These guys are just there to create content and deceive their followers for some YouTube views.
The main crypto elites who are the crypto whales controlling the crypto market are just silent doing what they are doing and short squeezing everything. So instead of crypto trading based on the information you heard from some influencers and hoping you are right or hoping you made the right call, just know that no one is ever 100% right. Even the crypto whales have the Bull whales and bear whales. In crypto trading you just have to trade and hope that your wins are way bigger than your loss.
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