A wise man once told me… “we don’t lose in this clan… We learn.” And then I stole his quote and told it to my own clan mates in my clan.
Turning losses into lessons, or wins, is something that very few do, but the most successful are the ones that do.
Many of us have incurred losses over these past few days. Bitcoin plummeted to as low as $30,000 USD, Ethereum went all the way down to $1700 USD, and all the alt coins all followed, dropping 50% or more.
Even the most experienced traders will have losing days. The question is, will you learn from your mistakes?
Here are the lessons that I learned over this weekend-
Always Take Profits-
Other than Bitcoin and Ethereum, I am also heavily invested in Cardano. Just before Bitcoin took a dive down Cardano was reaching new all time highs. I took profits at $2.00 with the expectation that there would be resistance at that level and that Cardano would need to cool off before going further. I did not expect the price to go as high as $2.50 so quickly. So what did I do with my profits? I reinvested them back into Cardano because I was afraid of missing out on massive gains when it was going to reach $3.00! That didn’t happen… as we saw Cardano dropped over the weekend to as low as $0.91. The lesson? Take profits and hold onto them. Do not get greedy and do not let FOMO guide your decisions.
Which leads me to my second lesson.
Stop-Losses-
I wrote a post not too long ago about the importance of setting stop-losses. Stop-losses are so important as they prevent large and uncontrollable losses. Stop-losses are so easy to set up and can save you a lot of emotional stress, and what did I do? I removed my own stop-losses because I was getting greedy. And as I watched the markets drop it was already too late for me to sell and lock in my earlier profits.
Once the reached the bottom, I learned another lesson.
Buying The Dips-
BTFD. Once Bitcoin dropped, I was absolutely buying the dip. My mistake? My purchase price was close to the top of the dip. It is impossible to time the market correctly and sell at the absolute top and buy at the very bottom. The lesson I learned here is to buy in sections. Spread out the purchasing of said dips over a period of time so that in case the price does go lower you’ll still have the funds to purchase the even further discounted price. If the price goes up at least you still locked in a lower price overall. By the time Bitcoin, Ethereum, and Cardano reached bargain prices at the bottom I had no more spare funds to buy them.
I think the overall lesson for me is to not get greedy. Greed played a part in each and every mistake that I made. Fortunately, my mistakes were not as costly as others. I’ve made plenty of mistakes in the past and will likely continue to make mistakes. Try and view these times as opportunities to improve and be better. Do not give up.
“The most successful people are the ones who learn from their mistakes and turn their failures into opportunities." -Zig Ziglar
By learning from your mistakes you will turn your losses into wins.
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*Disclaimer- I am not a certified financial planner/advisor, certified financial analyst, economist, CPA, accountant, or lawyer, or anything important for that matter. The contents of this article are for informational, educational, and entertainment purposes only and do not constitute financial, accounting, or legal advice. Always do your own research.*
