If You’ve Lost Sleep in the Crypto Markets, Try This Before You Next Hit “Buy”

Qualities of a Trader

Some people are natural born investors, fewer people are natural born traders.

A good trader is disciplined, doesn’t enter into trades without knowing exactly when to take profits or cut losses. The best traders I know of are humble enough to realize that they need to plan the trade first, then simply trade the plan. If they hit their targets, they take profit; if they’re wrong, they show humility and exit the trade.

An old saying about traders: “You get old traders, and you get bold traders. You do not get old and bold traders”.

Qualities of an Investor

Investing is boring. This is a feature, not a bug.

Regular purchases of an asset at market prices is so simple, it’s boring, but don’t have to worry about whether or not you’re buying at a good time or a bad time; you just buy at market prices. No stress, no anxiety. Pretty boring huh?

The good news is that once your investments start maturing, then investing changes from being boring to being satisfying.

Blending the Two

The key insight here is that you don’t need to be one or the other, but you do need to know which one you are before you hit the buy button.

An investment should be something one buys and forgets about. Ethereum drops by 50%. Ok. Bitcoin got banned again? Cool, whatever.

A trade is something one has no long term conviction in, or emotional connection to. Plan the trade, then trade the plan.

I consider each purchase either an investment or a trade, and I act accordingly, and it’s saved me a lot of sleep over the years!

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