Regret-Proof Trading: Establishing Hard Rules for Crypto Trading

I've been on this crypto journey for quite some time now, and I've learned the hard way about the importance of discipline. Early on, I made impulsive decisions fueled by FOMO (fear of missing out) or panic selling during market dips. It wasn't until I committed to establishing strict rules and maintaining discipline that I began to see consistent gains in my trading portfolio.

First, let's discuss why I'm writing this post. It's about a feeling that I believe everyone who has been in trading has experienced: regret. Believe me, regret is the greatest enemy of a trader. Why? When everything was going according to my plan, and somehow I still felt FOMO because of some group signal that I believed was good, I decided not to follow my rules anymore. The outcome was very familiar: liquidation. Then the feeling of regret comes like, 'I shouldn't have taken that trade, I should have put a stop loss, I shouldn't have been too confident in my decision, or just listened to some signal that I thought was good without proper inspection according to my rules.' The next thing that comes alongside regret is always sadness and upset. Really sad and upset. At that moment, your feelings are not under control anymore, and that is when you are likely to make the worst decision possible because you just don't care about anything anymore; you just want to get your money back. But we already know what will happen next. So the reason why I'm writing this post is to make sure that you know who your enemy is and how to avoid the same situation.

These are some of the hard rules that I've learned from my failed trades. I'm sharing them with you, and you might think that you've seen them multiple times before. However, if you've been losing your trades, it's time to do something new and write these rules next to your trading corner. You should also have a designated space just for trading, with a big screen. Stop trading on your mobile phone with its tiny screen, and stop using your money to trade with it. Always read these rules first before entering a trade, especially when you've just woken up:

1. Always set stop-loss orders to limit potential losses. If you have made up your decision to follow that trade, follow it to the end. No shaking.
2. Never invest more than a predetermined percentage of your portfolio in a single trade. You can always make it back as long as you don't go all in.
3. Stick to a consistent risk-reward ratio for each trade. Want to be profitable in trading? Better learn what is risk-reward ratio.
4. Avoid chasing hype and stick to your predefined trading plan. IMPORTANT!
5. Regularly review and adjust your rules based on market conditions and personal performance.

6. Never enter a trade when you're angry or just want to get revenge from the last failed trade. I know it is hard but try to clam down and STOP trading immediately.

   To avoid experiencing regret, you need to stick to your plans and rules before entering a trade. I bet everyone has their own 'special' group where you believe that their signals are good, but believe me, it's only good before your stinky hands get on it, lol. So make sure to limit yourself to only 1-3 'special' groups, so you don't get overwhelmed with too much information and confuse yourself when there are too many signals.

   Don't jump right into a trade when they first post the signal. Take the time to inspect and analyze the situation. Draw some lines or charts, whatever suits you, and try to determine if the signal is really good and achievable. If it is, follow your rules and let it ride. You can't feel regret if you're following your own rules and plans.

   Learn to accept it if you fail a trade; it's totally normal. You can't win 10 out of 10 trades, but accepting failure will surely make you feel better and clear your mind for the next trade.

   Remember that having plans and rules do not increase your chance of winning in your trade. This is the real life, you gotta be mature about it. Instead of dreaming about 1000% gains with your portfolio, set a clear, achievable goals, and take consistent action to slowly achieve them. This approach brings your trading endeavors into reality, rather than indulging in delusions.