Talks about risk management - but no one tells you this
The phrase "risk management" is used constantly in the cryptocurrency world - almost like a disclaimer.
Risk management is not just numbers or settings; it's a radical change in identity.
Most traders think like gamblers
They want a double profit. They bet on a big rise in altcoin prices, doubling their losses.
This was me.
I told myself I was "managing risk" because I used a 2% stop loss.
But behind the scenes? I was trading out of revenge, over-leveraging, and chasing dopamine.
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The shift: from trader to capital protector
And this is what changed it for me:
1. I stopped defining myself as a trader.
I started to see myself as a risk manager. My job is to protect capital first, then grow it.
2. I stopped worshiping victories.
• Instead of celebrating gains, I celebrated smart decisions: cutting losses early, overcoming inputs of fear of missing out, and sitting out of volatile markets.
3. I made risk a part of my daily narrative.
• Every trade starts with a question: "What are my weaknesses? Can I get past this if I fail?"
• If the answer is unclear - I won't participate.
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Tactical moves reinforced the mindset:
• I have renamed my accounts.
Instead of "trading account," I named it "capital reserve." This motivated me to protect my money first.
• I added a "regret scale."
If a trade's loss would evoke emotional regret, I would reduce my position size. If I could lose it without hesitation, then I would increase my position size.
• I set a daily loss limit instead of a profit target.
My job is not to win today, but to be here tomorrow.
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In summary:
Good traders know their setups.
Great traders know themselves.
If you want to achieve long-term success in cryptocurrency, risk management must stop being just a rulebook...
... and start becoming who you are.