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To say the markets reacted to Elon Musk tweeting to his own benefit is an understatement. (He didn't start selling off his BTC, but if you panicked and started dumping, you gave him and the other whales ample opportunity to snatch up your droppings...he's not even thanking you.
Read more here & here)
This isn't even about Elon Musk and Tesla's efforts to be the solar power superheroes of crypto.
What Happened to My Ability to Stay the Course When I Got Excited?
I - like every person, have emotions. I know, wild, right?
Initially I hit a SL and wasn't out too much, and then even during the major downturns, I had earned back all of my lost money and ended up being profitable. Not even shorting the market, I made my money back and my gains on long positions. (All made possible utilizing the strategy that I briefly mention in a previous post here.)
What I felt though was excitement. Oh, I had been eyeing certain zones like a hawk for the last couple of weeks, just foaming at the mouth for price to actually cross those thresholds for really high probability trades. And that was my problem.
This lead me to lean into the excitement and over trade. I literally broke every single one of my trading rules. I was defending shitty positions that I should have closed out by adding more to them, and good lord, I wiped out all my previous earnings on one chart because I refused to cut a loser early. And then of course making matters worse by adding to that losing position. I had a profit, and I should have left it alone! But instead, I am now coming back out of the woods.
So what did I do after that? I took time away from the markets. One full day of not even looking at the tickers. I put my phone away in the other room before I went to bed, and I didn't even open anything market related on my computer. I also made sure to honor my morning routine. I'm the kind of person that really needs to have my mornings happen in a particular way, or I am thrown off in every other aspect of my life.
I had deviated from the discipline I had put in place for myself. Unlike many millennials, I am not a fan of, "the grind," nor is it a place that I like to boast from. I flow. Flowing doesn't mean that you won't hit a rock in the stream, or brush up against branches that creep in from the banks. No, flowing just means that I'm not fighting to get things done. Discipline takes a look at the stream you're about to head down and says, "Ya know - how about you build yourself a raft? Or better yet, a boat. It can handle these rapids."
The way I look at discipline, and the helpful reframe I wrote about in my journal is that discipline is the unwavering commitment to my priorities. If it does not serve my highest purpose, then it does not belong. To deviate from the structures created by and around my discipline is an act of betrayal towards myself. And this, simply will not do. I have spent far too much time in my life going against what my gut was giving me very clear information on, and ultimately I ended up suffering needlessly.
Thankfully, I had proper risk management into place and I did not end up liquidated at all during the drop, and with my first day back have already earned back my losses for ETH, and am about half-way out of the hole with my BTC account. All-in-all, the lesson that I grasped out of all of this is, I am no good when my mind is not right, and I refuse to betray myself for any reason going forward.
I'm the kind of person that writes down everything that I do, especially if there is a routine practice around what it is I am doing. When I train at the gym, I write down everything. What exercise I do, how many reps, how many sets, weight or resistance levels, what my body's feedback is, and if there are any thoughts that are coming up. I do the same thing for my trades. I document everything. And now, I am including a question before I enter into a new position, especially if I am feeling shaky after an idea proving itself bunk - is this a deviation and ultimate betrayal of my rules?
Mastering my mind first, the markets will follow suit. Happy trading!
