Lately I’ve been busy with other things. So, trading took a backseat. I have been trying to keep a hand in, though, and that might have been a mistake.
Oh, hello Litecoin!
Since I’ve discovered crypto trading as a cheaper alternative to stock trading, I focused on that. After Bitcoin’s price rise had doubled my initial investment, I intended to stash half of it safely whilst trading only with the profits. However, Litecoin kept winking at me with an inviting smile. I ended up using the freed-up money for trading Litecoin. The idea is to keep Bitcoin as a sort of investment, and use Litecoin for trading exercises.
Am I a fool? – Hm, not sure.
There are so many opinions on Bitcoin & co. out there, that I get tired of listening to them. Gosh, even my mum texted me about Bitcoin few days ago! Anyway, the original seed money is essentially spare cash, which would be painful to lose but it wouldn’t put me out on the street. If there is one rule I’m sticking to, it is not to put any more money into crypto for the time being.
My idea was to do all the foolish stuff in crypto and paper trades and just take premium set-ups in stocks. Right…
Because I hadn’t touched stocks in a wee while, I felt an itch to trade for real again. So, I scanned my regular list, took two trades and ended up regretting it. These trades fulfilled most of my key criteria, but weren’t exactly premium set-ups. I paid dearly for it! In such moments, this message from one of Peter Brandt‘s tweets (I believe) really rings true:Having no position is a position. It’s worth waiting for the right trade.Click To Tweet
Blimming impatience has gotten the better of me again!
Being in the zone
Because of life’s distractions, I have pretty much been trading on the fly. One evening of crypto here, an afternoon of checking stock charts there… I made stupid decisions, panicked quite a few times because I didn’t think trades through, or I had thought them out a bit, but then lost confidence in my decision and overrode it. In addition to the stocks, my crypto trades mostly lost me money, which was fortunately compensated for by price rises. To be fair, that was the idea. But that’s no excuse for making bad trades.My safety net, the ‘bubble’. What could possibly go wrong?!Click To Tweet
In short, I have just not been in the zone lately. I mean, I hadn’t even made it to being a profitable trader yet. Now, I was trying to trade casually. What was I thinking?!
So, what now?
My distraction won’t go away for a good while, which is a positive thing, by the way. So, now that I have hopefully wisened up a bit, I will be able to take a step back. I consider looking at longer term trades or even short-term investments that require good preparation, but less maintenance.