This is not a guide of how to trade crypto. This is not about how to make money, how to invest, or where to find alpha.
But if you’ve dabbled in crypto-trading? Then you know this one thing: It can be all-consuming. When your money is on the line, suddenly you’re checking the prices more than you check social media, you obsess about the charts, and even your dreams are filled with candlesticks and Elliot Waves.
Oh, and there’s never a break. Stock day-traders might be Red Bull-pounding stress-monsters from 9:30am to 4pm on Monday to Friday, but they are then forced to relax when the market closes. Crypto is always on. Trades beckon. If you’re asleep at 2am? Maybe you just missed a 10X opportunity. Spent Sunday morning at brunch? Maybe you failed to avoid a -40% bloodbath. So it’s easy to stare at the screens – and stare and stare and stare.
“The casino never closes,” says Scott Melker, a trader who goes by the alias The Wolf of All Streets (and one of The Men Who Stare at Charts). “It’s just very, very difficult to detach. It’s a forced skill.”
So how do you cultivate that skill? More broadly, how do you protect your mental health while investing or trading in cryptocurrency? We spoke with Kevin Zhou, head trader of Galois Capital; Bobby Cho, partner at CMS Holdings, and Melker to get some insight on best practices.
Each trader stressed – repeatedly – that this is not financial advice. Instead these are tips, strategies, and guidance for how to stay sane.
1. Set trading hours.
Sure, the exchanges are open 24/7, but that doesn’t mean you need to be. “I treat it like a business,” says Melker, who only trades between 9am and 5pm, and then he has dinner, puts his kids to bed, and lives like a normal person.
2. Make a plan. Stick to it.
Each trader emphasized mental discipline. “Do your homework in terms of why you found a trade interesting, and what…