The elements of crypto trading addiction and gambling are a consistent risk that we must always be on guard against.
Are you Addicted To Crypto?
If you’re feeling muscle tension, if you’re feeling a slight background anxiety, if you’re checking the price of Bitcoin and altcoins several times through the day (and night), if you’re thinking about trading while you’re engaged in other activities, then you could be edging into the dangerous area of trading outside of your trading plan.
I must say that I’m as guilty of “the risk to trade compulsively” in these markets as anyone. It’s something I have to constantly guard against.
The emotions you feel while you are trading are much more important than many people acknowledge. The negative emotions created by the addiction-style compulsive need-to-watch-the-markets can begin to affect all relationships in all areas of your life – and even your health.
Self-Talk of a Typical Trading Addict:
- I can’t miss this opportunity, the market is going to explode any minute now.
- I need to keep checking the price to make sure I don’t miss out.
- If I don’t make a move now, I’ll regret it later.
- I have to keep taking risks and making trades to stay ahead of the game.
- I can handle the stress, I just need to keep pushing myself.
- Maybe if I just make one more trade, I’ll hit it big and all my problems will be solved.
- I can’t stop now, I have to keep going no matter what.
Addicted Trader Holding A Loser:
An addicted trader holding a losing trade might say to themselves:
- “I can’t sell now, the price will bounce back any moment”
- “I’ll just hold on a little longer, it will definitely go up eventually”
- “I need to average down my position, then I’ll make a profit”
- “I can’t let this trade be a loss, I need to keep holding and hope for the best”
- “I’ve already invested so much, I can’t afford to sell now and take a loss”
- “If I sell now, I’ll miss out on potential profits when the price rebounds”
An Experienced Trader Self-Talk
A long experienced trader may say to themselves while holding a losing trade:
“It’s okay, losses are a part of trading. I have a solid trading plan and I know that over time my strategy will lead to overall profitability. I’ll use this experience to learn and adjust my approach in the future.”
The difference between the two self-talk examples is that the experienced trader is more self-compassionate and focused on the long-term plan, rather than being overly self-critical and focused on the immediate loss. They understand that losses are a natural part of the trading process and use it as an opportunity for growth and learning. This type of self-talk helps the trader to maintain emotional balance and a level head while navigating the ups and downs of the market.
The experienced trader is more self-compassionate and focused on the long-term plan, rather than being overly self-critical and focused on the immediate loss.
Trading for Financial Freedom
Take a moment to reflect on what’s the main reason that you got into trading Cryptos in the first place? For many, it’s for Financial Freedom which is time freedom, security, comfort and all those things. I want to have my crypto money work for me, I don’t want to spend my time working for my cryptos.
So if I’m trading in such a way that it takes away from these reasons, then I am feeling stress. And so what’s the solution? The solution always is to change your thinking. To review your long term goals in all aspects of your life and then find a way to participate in the cryptocurrency trading that is going to open up more space for joy in your life – rather than causing muscle tension, background anxiety, constantly looking and thinking about the market.
Finding a Low Stress Approach to Crypto Trading
Instead of feeling stress when you can’t be there to make decisions on the market, instead of the feeling that the market may get away without you. Focus on a low time commitment way to trade crypto that opens up more time, more space for joy and success in your life.
If your trading doesn’t feel good, you have to review it.
It may require smaller trading positions, eliminate margin trading and eliminate leverage trading. And then refocus. Past performance is not indicator of future potential. Diversify your time in the many aspects of crypto trading and investing rather than just watching the charts to see when the prices are going to take off into the next pump.
It’s easy to get caught up in the excitement of the market, but if your trading doesn’t feel good, it’s important to take a step back and review your strategy. This is where emotional intelligence comes in. Emotional intelligence is the ability to recognize and manage your emotions.
When you begin to feel relief you are on the right track, when you begin to feel good you’re on the right track, when you’re spending less time managing your crypto trades (your crypto trades are working for you rather than you working for them) when you find yourself joyfully participating in other activities and you never even thought about your positions – you’re on the right track.
Overcoming Crypto Trading Addiction:
One of the first steps in overcoming crypto trading addiction is to develop emotional awareness.
You need to recognize the emotions that are driving your trading decisions. Seek the guidance of a financial health professionals. Read the book “Money Is My Friend,” and start to unravel your emotional beliefs about money that were scripted while you were a child. By understanding your triggers, you can develop strategies to manage them.
Once you’ve developed self-awareness, the next step is to develop self-regulation.
This means managing your emotions and avoiding impulsive decisions. Self-regulation is managing your stress levels or your energy levels by choosing to tell a different story in your mind. Start to incorporate stress-reducing activities into your daily routine, such as exercise, meditation, journaling, or spending time with friends and family.
- For chronic or extreme stress, this author recommends attending a guided hot yoga class which combines physical movement with breath work and meditation.
- The emotional rehearsal meditations by Dr. Joe Dispenza are also highly recommended.
These meditations involve visualizing a specific event or outcome that you desire, and experiencing the emotions associated with that event as if they have already occurred.
The idea is to create new neural pathways in the brain that are associated with positive emotions and outcomes, which can then help to reinforce positive behavior and reduce negative emotional states such as anxiety and stress.
Dr. Joe’s meditation retreats have been shown to be effective in reducing stress and improving both physical and mental health, including stress management and emotional regulation.
Balancing Crypto Trading with Other Aspects of Life
There is a time to work hard and put the hours into studying everything you can about Cryptos… to make your spreadsheets and to make your trading plans… but then there’s a time to stop thinking and to enjoy other aspects of life.
If you feel the signs of Crypto Trading Addiction, if you have been spending way too much time watching the markets, if it is causing stress in other areas of life… it’s time for some changes so trading take less time to manage – and you focus on more joyful activities.