How to Control Your Emotions When Trading Crypto

The world is really revolving and changing at a very fast pace. In fact, by my own personal verdict, I will say knowing technical analysis is not enough for you to be successful in your trading journey. I have seen a lot of crypto traders who understand both the technical and the fundamentals aspect of trading but they are making constant loss. In fact some of them, it is because of the loss that they actually gave up on trading. I believe there are a whole lot of us in that shoe.

One of the major factors that will determine your success in crypto trading is how to control your emotions and that is just what I want to discuss about. When I am talking about emotions, I am talking about how you can control greed, fear and other emotional demands that usually influences every trader against their decision. When it comes to emotional effects, there are a whole lot. The first is fear of missing out which is usually called FOMO. Some it is due to fear of loss and some of them are due to greed.

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From my experience, some of the things you can do is that you should have a clear trading plan. That is the first way to actually seal with emotional demand. One of the major things why trading plan will do to you is to help you have entry and exit points. It will help you to have risk management rules, it will help you to have good position sizing and also helps you to have strong profit targets. For me, when you have a trading plan, it will be super easy for you to stick to it and to continue to keep going with it. But if you do not have a trading plan, all those emotional effects like greed and anxiety can easily affect you.

Another strategy I will recommend that you should actually have is for you to have stop loss and for you to actually have taken profits orders. When you have these two, trust me from my own personal experience, it will go a long way to reduce some emotional decisions you make. One of the major things that stop loss will do to you is to greatly prevent you to make huge losses and one of the advantages of take profit is it will help you to protect your gain so that you will not lose them. You should also make sure that any trading you will be engaging into, it will be with the money you can lose. This will actually help you to reduce anxiety and lots more.