My entry
Buy high, sell low! Why emotions are bad for your portfolio!
In February 2018, I was already inside of Bitcoin bubble. I had no great experiences with trading, but I was sure Bitcoin must go back to 20k anytime soon. When the price of Bitcoin one day was rapidly decreasing in the beginning of February, I was already at lost with my portfolio. I decided to get profit from this fast-downward movement and I sold some of my BTC, to short the market and re-buy at the lower levels. Filled with greed, I did this exciting trading move. The price hit 6k levels and that is where I sold my position, at the very bottom of the graph! Then the price started to rise again, very quickly. I was feared, that my loss will be bigger and bigger withing every next moment, so I panic-bought back with additional loss.
From that time, I changed my behavior a lot. Now I try to see the long-term picture and I kept following my long-term goals. No short-term price movement can play with my emotions.
Even at that time, if I would be patient, I could even re-buy back at 3500 USD in December 2018. But in February, the emotions just made my decision, not my ratio!
Entry 24
I once read that trading is fundementaly against human nature and I totally agree with it. Our emotions always play tricks to us and we need to be able to shut these emotions out in order to make profit with trading. I don't manage and I leave my fingers from trading. I invest only in stuff that has a real return and I sleep much lighter at night ;-). Thanks a lot for sharing!