Last year I lost it all. It was history repeating itself, only this time it wasn't at the poker table.
12 months ago I had been a proud long term hodler of 4,000 Chainlink, worth at the time $3 each, heading IN TO a bull market. I had been patiently hodl'ing during most of the crypto bear market, and even the coronavirus crash in the markets didn't shake me. I hodl'd on. Except I didn't forsee how anxious and bored I would get during lockdowns. With nothing to do but stare at the markets I got impatient. I started using 20x leverage. Any unrealised loss instantly became too painful to look at, I'd get scared and close out my position, only to see the price recover. This was my emotion clouding judgement. I knew the technical anaylsis just fine. But a lack of patience and an emotional frame of mind can bite you in the ass. One bad hand or bad trade leads to another, then another... Full Tilt. The desire to make up losses is at the heart of many a great melt down. At this point I became a gambler not a trader. I imagine this tale is not uncommon.
By May 2020 I lost every bit of money I had chasing losses. I learnt the hard way, trading on leverage isn't for me, in precisely the same way poker isn't for me. I struggle to keep my emotions in check. It takes a certain mindset to deal with the swings, which I finally realised I just don't have.
3 months later I can only watch as Chainlink soars above $20 per coin. Brutal.
Fast forward to now. I look back on a lesson learned the hard way. I still trade/invest, just not on leverage. I sleep much better at night. I play the long game, and most people should. They just won't know it until it's too late.
"Some people, pro's even, won't play No Limit. They can't handle the swings" - Mike McDermott
