“How to do risk management in crypto?” As you can remember from our article, we have mentioned how important you are to follow the amount you invest. In today’s article, we will talk about the importance of keeping a trade diary and its effect on memory and attention processes.
First of all, many people who participate in crypto markets with small balances are trying to progress with margin transactions rather than purchasing spots and sales. The margin is a type of financial transaction that allows people to open larger volume positions using leverage on the capital of the people. For example, when a person with $ 500 opens a 10x leverage, he can take the procedure as if he had $ 5,000. For example, if they provide a profit of 10 percent, it captures a $ 500 profit, on the other hand, if it suffers a loss of 10 percent, it loses all its money (it is also called “liquid”). Losing all your money varies according to your leverage quantity. When you divide your leverage into 100, the number you get corresponds to the percentage you will lose. For example, if you experience a loss of 5 percent in a 20x leverage process, 20 percent in a 5x process and 50 percent in a 2x process, you will lose all of your money. If you understand the basic logic of margin processes, we can deepen a little more.
I have mentioned mostly in my previous articles since I took spot transactions in crypto markets. When I received technical and basic analysis trainings, I also received plenty of margin transactions. At first, I was only taking the process, but after a while, I met the concept of “Trade Diary üzerine on the advice of my friend Mertcan Çakıroğlu, who was more experienced and instructor than me. Below you can see the daily example that I have received from him and made my own additions. As you can see from the example, there are “parity”, “direction”, “transaction result”, “amount of loss”, “amount of earnings”, “thoughts and interpretations”, “emotions”, “process image” and “myself notes to myself”. Let’s make a brief explanation of each title.
First of all, “parity” represents the crypto currency we take (if you prefer Forex or a different investment tool). “Direction” represents which type of operation we take (decrease -oriented or rising or rise /Long maturity). It shows whether the “transaction result” is successful or unsuccessful. The “amount of loss” and “amount of earnings” indicate the change in our balance as a result of the procedure.
Is it a solution to change orders?
The “Thoughts and Comments” section includes your thoughts and interpretations before the processing, during the transaction and after closing the process. In my opinion, one of the most important headings is this part because it will increase your success rate to realize the thoughts and themes you repeat frequently while taking the process. For example, I realized that I was constantly processed with Fomo in the early days, and after a while I gained a habit that it would be more accurate to wait for the price to come to where I wanted instead of changing orders.
Trying to be free of emotions while opening a process
“Emotions” represents the emotions you feel before, during and after closing the process. Recognizing the emotions you feel frequently as dominant will make it easier for you to take a relatively more emotionally more emotional process. For example, when I carried a process for a long time, I felt anxiety and fear. This was both an anxiety and fear that I would lose my earnings in the transactions I was profitable, and it was because I could liquidity in the procedures I stayed in reverse (as you can see, I was taking without stops like many of you at the beginning). The dimension of emotion is skipped by many trades, but the emotion management will allow you to remain cold -blooded, to be less emotionally affected by the processes and to sleep relatively more comfortable.
In the title of “Processing Image, there should be an image that shows your confirmations showing why you are entering the process. It is very important that you can determine which structures work better in your subsequent studies or repetitions. For example, you see a process I have received with six different confirmations in the screenshot you see below.
Finally, in the title of “Not Notes for Mimal”, you can specify the general themes that you think you should pay attention to both “emotions” and “processing image”.
Personally, after I started to hold the trade diary, I made a visible progress in my performance. So why?
The way to remain loyal to the plan is through a diary
First of all, when you work regularly by taking notes, it is much more likely that you will be connected to your own principles and rules, gain discipline and internalize the whole process. If you think you can’t progress in a disciplined way, you can help you to keep a diary at this point.
Secondly, it will be easier to follow how much you have lost and how much you have lost. Although many people know their main balance, they cannot properly monitor which process. With a regular diary, you can identify the parities that you have made or have failed or have failed, focus on them more and increase your success rate.
Thirdly, it will be easier for you to notice similar patterns and structures in the parities based on screenshots. At the same time, you can determine the effectiveness levels of the confirmations you are processed by working more precisely and be more careful for the next process.
Finally, as I mentioned earlier, it will be more careful and selflessly to determine the emotions, thoughts, recurrent mistakes and general themes you feel during or after closing the operations.
Method of “Really” your success rate
Taking successful transactions continuously leads to “invincibility perception, and causes you to feel as if you have never lost and to experience loss of attention and blindness after a while. Similarly, taking continuously unsuccessful transactions may regress the processes for your attention and memory, and may lead to a negative mood. Therefore, you can regularly determine your “real” success rate and amount of earnings more precisely, realize the points you need to be carefully and start to take more successful operations. At the same time, you will have a source that will remind yourself that you are successful after you have failed in a row, and that you may fail when you are constantly successful and that you should not leave attention.
