Discord and CryptoTwitter are Eating your Balance

I’ve been musing over writing about this for some time. It’s really a “newbie” article.

If you haven’t checked out my previous articles on the Accumulation and Distribution pictures for BTC, please check them out here:

Accumulation — https://medium.com/@ColdBloodShill/btc-accumulation-check-your-bias-edition-18ac16b40634

Distribution — https://blog.goodaudience.com/its-accumulation-616aa8d2478a

So, on to this article. Discord and CT are literally destroying perception of time and are also destroying your trading — if you let them.

Consider the following to see whether you have fallen prey of any influencing factors:

I have entered a position based on what someone on Discord/Twitter has said.

I have closed a position based on what someone on Discord/Twitter has said.

I have changed my bias based on what someone on Discord/Twitter has said.

During periods of ranging I have entered or closed a position because of the actions of someone on Discord/Twitter.

I enter positions that I have not planned because of the actions of someone on Discord/Twitter.

I have closed positions that turned out to be winners if I had stuck to my plan.

I have opened positions anticipating a big move just to have the market continue in a range before closing the positions again at a loss.

I open and close positions quickly if I see a “reputable” trader entering or exiting.

I open trades just to close them again quickly if the price moves against me.

I see this daily.

Eating away at your balance

One MASSIVE mistake you can make is sitting in Discord or on CT following calls and acting on the discussions taking place. Don’t get me wrong, I absolutely love both platforms and spend a lot of time there but not when I’m planning trades. Oh, and especially when BTC is in a prolonged range.

Here’s several examples of Tweets and comments throughout the range we’ve been in around $6.2k. (Please note this isn’t an exercise in bashing anyone on their calls, it’s simply illustrating posts that have the power to influence, some were correct.)

Here’s another example of a price point I had marked at the time to monitor comments around Discord to see how it may be affecting the trading of others.

I got to this point of the article last night and went to bed. I woke up this morning to the $6.8k pump (15/10/2018.) I don’t think I could have asked for a better example of what I’m discussing here. PS. Looks as though Hulk dick was correct.

The Impact and Over-trading

Hearing comments like this every time you’re in a Discord channel, especially in ranging markets, can cause you to over-trade. You may over-analyse the market, movement and focus on lower TFs. You are seeking confirmation for your bias, sometimes a Discord message is enough, sometimes a Tweet.

What also happens is that your perception of time or volatility increases. A day of BTC ranging while being bombarded with messages of “pump!!!111!!11” and “DUUUMP EEEETTT” from every $40 move continually heighten your sense of anticipation of an incoming big move (that you will miss out on.)

Here are some common signs you’re over-trading:

Watching trades minute-by-minute

Moving to lower time frames once in a trade

Looking for outside confirmation (social media, forums, news sites)

Constantly moving around stop loss and profit levels

Adding to trades and/or partially closing trades (usually without a plan)

Checking trades on the phone while on the go

Each trade you take, good or bad, affects your future decision making without you even realising it, I don’t want to go too far into this as I could talk for hours. Sometimes the feeling manifests itself as a conscious thought that you can recognise and address: “I lost the last trade when I did this, I don’t think I’ll enter here.” You then watch the market go in the direction you anticipated and this moment leads to anger and revenge, “Why didn’t I just do it? I knew it was the right decision. I’ll enter now.”

FOMO, missing out on the bigger moves, feeling like a God with a great entry, feeling like you missed the chance to make money, doubting your ability, ALL of this affects your psychological makeup when it comes to decision making.

What is important is that you take steps to address it by understanding the impact platforms like Discord and Twitter may be having on your decision making.

The approach that works for me is to trade less.

1. Spend time creating a plan in isolation, remove the noise and distraction of Social Media.
2. Identify important price levels you will monitor.
3. Set alerts that help you get away from the screen.
4. Wait for the price to hit your targets.
5. Check and if the conditions are correct, trade.
6. If they’re not, remove the alert or check back later to see if conditions have changed.
7. If your trade has been invalidated, remove it and move to the next.

The wonderful thing about the markets is that there are so many of them to choose from. Why not spend time looking for altcoins instead of staring at the 5m BTC chart? Why not zoom out and look for larger TF trades to take? Why not just take a break and let the trades come to you?

Don’t let Discord and Twitter shape your trades. Don’t let them distract you from your charts and your analysis. The only way you can learn and develop is by having a plan and sticking to it. Create a journal, document each trade you take and analyse them after. Following others simply leads to the conclusion of “they were wrong” — it does nothing to improve your knowledge or ability.

Keep track of time, don’t assume that because people have started spamming “pump” or “dump” that you need to jump into a trade. Don’t get caught in the persistent anti-climactic messages that promise a big move is coming soon. If you have a plan and you stick to it, you’ll shut off the noise, remove the distractions and begin trading in a way that’s possible to analyse and improve from.