If you’re into the business of trading cryptocurrencies, then you must be used to seeing charts and candlesticks. Some traders even obsess about market charts and dream of candlesticks growing in their favor. Needless to say, the cryptocurrency market is an all-round the clock venture with no breaks. The following are a few tips to make your mental health a priority:
1. Schedule trading hours
You definitely can’t be staring at the charts all day unless you’re some sort of robot that’s being powered by electricity or something. Treat trading the same way you would a business. If 9 a.m. to 5 p.m. works well for you, pick your trades around that time, not before, and definitely not after. It’s easy to overlook this simple disciplinary trading measure, but it’s one that sets the line between seasoned and amateur traders.
2. Create a plan and stick to it
As a trader, you need to arm yourself with enough discipline to create a plan and stick to it. Make a note of your risk-to-reward ratio – how much you’re willing to risk for a certain profit, and once you’ve hit your take profit or stop loss for the day, close the charts. You don’t want to fall into the category of traders who emotionally switch strategies mid-trade. You’ll be setting yourself up for a lot more than disappointments.
3. Don’t be greedy
Greed and fear are your biggest enemies in trading. Not having these two in check could be detrimental to your trading and mental health as well. There are times the volatility of the market will make you enormous profits; other times, you may not be so lucky. Greed is what makes you disregard your daily gains/losses and wants to make you flip your account three times over in a single trade. Keep your emotions on a neutral ground where you win; don’t feel too good about your wins and too bad about your losses.
4. Take every loss as an opportunity to learn
The problem doesn’t always have to be your strategy. It’s not impossible for it to rain on a sunny day. Never let your losses trigger feelings of anger or despair. Rather, ask a few questions such as, “did I enter this trade a bit too early or too late?”, “did this loss come in because I came in with a positive edge and I got unlucky?”. Provide honest answers to these questions, take note of your mistakes, and ensure to look out for them in subsequent trades.
5. Exercise
Often one of the most overlooked but very beneficial in maintaining mental stability for any crypto trader. It’s a good idea to hit the gym a few times a week to clear your head of the charts and candlesticks growing in your dreams.
6. Take regular screen breaks
You don’t want to be accustomed to a sedentary lifestyle of sitting at the computer screen all day. Taking regular breaks will not also save you from eye strain and headaches but enhances your overall productivity of the day. The 20-20-20 rule is a good idea – every 20 minutes, look at something 20 feet away for 20 seconds. If you’re not used to this habit, you may want to set a reminder on your phone every 20 minutes to give yourself a little time away from your screen before the habit kicks in automatically.
7. Get enough sleep
The charts will still be there after you wake up. You’ll be doing yourself more harm than good if you deny yourself decent sleeping hours. You risk the proper functioning of your brain when you don’t prioritize a good rest. Your trading ability is largely dependent on your mental health as it is your trading plan.
Final considerations
Trading cryptocurrency has made so many people millionaires as well as it has put people on the brink of depression. It takes more than spending hours in front of the charts and a good strategy to be a profitable trader. A seasoned trader knows better than to value money over their mental health. If you, too, are going to weather the storms that come with trading, it’s important that you incorporate these habits into your daily trading routine.
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