Temptation Has No Place In This Game

There are quite a few rules in trading, both written and unwritten, put together by (now) experienced traders who have made these mistakes. The purpose of these rules is for new users to avoid making these mistakes themselves.

They say smart people learn from other people's mistake, not so smart people learn from their own mistake and dumb people make the same mistake over and over again and never learn.

One of the most important rules in trading is the following:

• Don't trade your retirement funds

Two days ago I saw an opportunity to bank 12% on ETH (from my retirement fund) and buy it back lower. It looked like a small retracement is coming and I was thinking of selling my ETH that I put aside for my retirement fund, at $2070 and buy it back around $1960 or so. I knew I would break the rules, but temptation is king sometimes. While I was thinking about whether I should or shouldn't do it, the retracement started and I was still thinking and thinking. After 10 minutes the price was already at $2040 and I decided not to do it, because all this happened in the evening, I had no desire to stay up and watch the market evolution. Placing an order and going to sleep seemed very risky.

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What's Happened?

There was indeed a short pull back, but nowhere near my estimation. It stopped at $2000, which means it would have missed my order with a lot and I would have been left with my USDT. ETH is at $2170 at the moment of writing, it's going to go up a little more, then a short pull back is expected, but nowhere near a zone that would be preferable by me.

When I woke up in the morning and saw the chart, I could have not been more happier for sticking to the rules! This was a great lesson for me that I will remember for a long time!

I think if you learn to stick to the rules from the beginning, without exceptions, it's going to save you from a lot of trouble.

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You can see messages like this on every social media platforms. People love to say smart things like the one above. Many of us know these rules but sticking to them is a totally different matter. When you see an opportunity, you want to make some profit with every cost and it's easy to get carried away. Then sh*t happens.

In my case we're talking about $30 in ETH, so it would not have been a big loss, however this is not about the amount of gain or loss, but about learning to do the right thing. I'm proud of myself for sticking to the rules as it saved me from making a huge mistake.

Very soon I need to put together my set of rules, learn every single one and stick to them. I see no other way. I'm not here to gamble with my money earned the hard way. I'm here to 5x, 10x, 100x my account and can only do that by being smart. The sword of Damocles is not hanging over my head, I'm in no rush to get rich either. I'm here to learn in the first place, to be able to make the right decisions on my own. This is a process and discipline is key. It seems the best way forward.

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