Trading anxiety is a problem faced by traders worldwide, whether seasoned or beginners. A good contract trade must be based on a calm mindset of the actual trader. How to overcome this anxiety? I break down the process of overcoming anxiety into three steps; traders with a stable mindset can skip this chapter.
Establish your own trading system:
When it comes to trading systems, beginners might be completely confused. Those who have this thought must not understand the indicators at all. You can look for a few books that detail the indicators and create a buying and selling strategy based on your needs by combining different indicators. Next is risk control management (position management and leverage adjustment), which constitutes a simple system.
Operate according to the system's buying and selling indicators, conduct real market tests yourself, and you can start using it if the success rate is above 70%. Most anxiety comes from a lack of confidence in trading strategies. Therefore, reviewing past performances and observing previous trends is very necessary, but it’s worth noting that a well-constructed trading system cannot be used indefinitely.
When the trading system repeatedly fails, it indicates that the market style has changed, and the main force may have switched. Therefore, trading strategies need to adapt periodically.
Protect the principal:
There are always opportunities to make money in the cryptocurrency market, as long as you are patient enough. Turning a thousand yuan into a million is not impossible. The cryptocurrency market is not lacking in opportunities to profit; what it lacks is a steady heart. Losing 50% means you need to achieve a 100% return next time to break even; how can that not cause anxiety? Most people fail while trying to buy the dip or chase highs.
The reason I have survived in the cryptocurrency market until now is that technical analysis only plays a small part; most of the time, I focus on protecting my principal. Before opening a position, I always think not about how much I can earn but rather at what point I need to stop loss or take profit.
Do not regret failures:
For some market trends, missing out is just missing out; it’s not a big deal. Perhaps if you opened a short position on March 12, you could have made a huge profit, but that might not align with your positioning strategy. If you gamble ten times and lose once, you’re doomed, so there’s nothing to regret. Similarly, it's not necessary to capture all the profits in a big wave market. However, it is also a standard to measure a trader's level. Seventy percent is considered excellent; twenty percent indicates that your trading system has problems and does not align with market rhythm, and it must be adjusted in time.
