High stress and financial uncertainty can have massive effects on the mental health of crypto traders. Quite possibly even more so with the day trader, who may already have a higher than average stress level.
Today, let’s focus on creating and implementing strategies that help the cryptocurrency trader and day trader mentally survive a bear market without becoming overcome by the increased uncertainty and stress.
But before we start: If you are feeling something more serious than mild anxiety or depression, or you feel like you may want to hurt yourself, please reach out immediately to a hotline and let someone in your family or circle of friends know that you are in a crisis.
Easier said than done, emotional control is a vital element in a trader’s mental health. Here’s how some traders handle their emotions:
“The most important lesson an investor can learn is to be dispassionate when confronted by unexpected and unfavorable outcomes.” - Peter Bernstein
Even the worst crypto bear markets can be viewed in a positive lens when zoomed out for the long-term. Bitcoin advocates like Michael Saylor, Anthony Pompliano and Lyn Alden share an understanding that over time, Bitcoin just gets stronger and more valuable, regardless of its historical price volatility. Zoom out to see where we really are heading.
Take a moment to think about your current situation and try to remember exactly why you entered crypto markets in the first place to help put things in perspective.
Last of all, remind yourself that every bear market has bounced back and become a bull market. It’s only a matter of time.
In the midst of financial mayhem, it’s helpful to remember that financial assets are not the only good things in life. There are many other qualities. However important money is, it is not the end all be all. Try to find time each day to remember the things you are grateful for, such as:
“The malady of commercial crisis is not, in essence, a matter of the purse but of the mind.” - John Stuart Mill
The global crypto community welcomes people from every walk of life and every corner of our world. Not only that, but we are all here for one reason - to create this world where cryptocurrencies enable anyone to access sound money.
“Surround yourself with people trying to shape the future.” - Cathie Wood
Deep breathing, meditation and yoga all help you to relax, control emotions, and be more resilient to stress and anxiety. Luckily, they are all easy to do from almost anywhere - even from your trading desk!
Relaxation techniques are proven to reduce blood pressure, ease chronic stress, and reduce stress-related insomnia. All of these benefits also help you think more clearly, which will help you manage your way out of the bear market.
Simple daily meditation for traders:
Bear markets may be quieter than bulls, but this gives traders a chance to up their game. Sometimes working on solutions is the best way to see your way through a tough situation.
The self-improvement examples below will give you confidence while taking your mind off the charts, so in the next bear market, you’ll have even more emotional resilience and knowledge.
These 3 tips not only set you up for better trading, but they’ll lessen the mental effects of the next big downward trend.
Easier said than done, emotional control is a vital element in a trader’s mental health. Here’s how some traders handle their emotions:
“The most important lesson an investor can learn is to be dispassionate when confronted by unexpected and unfavorable outcomes.” - Peter Bernstein
Even the worst crypto bear markets can be viewed in a positive lens when zoomed out for the long-term. Bitcoin advocates like Michael Saylor, Anthony Pompliano and Lyn Alden share an understanding that over time, Bitcoin just gets stronger and more valuable, regardless of its historical price volatility. Zoom out to see where we really are heading.
Take a moment to think about your current situation and try to remember exactly why you entered crypto markets in the first place to help put things in perspective.
Last of all, remind yourself that every bear market has bounced back and become a bull market. It’s only a matter of time.
In the midst of financial mayhem, it’s helpful to remember that financial assets are not the only good things in life. There are many other qualities. However important money is, it is not the end all be all. Try to find time each day to remember the things you are grateful for, such as:
“The malady of commercial crisis is not, in essence, a matter of the purse but of the mind.” - John Stuart Mill
The global crypto community welcomes people from every walk of life and every corner of our world. Not only that, but we are all here for one reason - to create this world where cryptocurrencies enable anyone to access sound money.
“Surround yourself with people trying to shape the future.” - Cathie Wood
Deep breathing, meditation and yoga all help you to relax, control emotions, and be more resilient to stress and anxiety. Luckily, they are all easy to do from almost anywhere - even from your trading desk!
Relaxation techniques are proven to reduce blood pressure, ease chronic stress, and reduce stress-related insomnia. All of these benefits also help you think more clearly, which will help you manage your way out of the bear market.
Simple daily meditation for traders:
Bear markets may be quieter than bulls, but this gives traders a chance to up their game. Sometimes working on solutions is the best way to see your way through a tough situation.
The self-improvement examples below will give you confidence while taking your mind off the charts, so in the next bear market, you’ll have even more emotional resilience and knowledge.
These 3 tips not only set you up for better trading, but they’ll lessen the mental effects of the next big downward trend.
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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.
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