Research shows that more dopamine is secreted by the brain in anticipation of reward than when the reward actually arrives — daytradingpsychology.com
I lost precious money using leverage trading. After losing one hole freakin’ Bitcoin, I decided to quit this dangerous and risky business a year ago. That was around Bitcoin being $10K.
I burned my fingers at the fire called greed, I learned my lesson the hard way after getting drowned in dopamine while desperately trying to follow the exit signs.
It’s called Trader’s Trance, a chique word for Candle Craving or downright being a Leverage Junkie.
To add some value to my sore fingers, I like to share my findings so this story might save somebody else’s Bitcoins.
It was a wild ride altogether, and I could not pull myself out of it, even when I realized I was on the losing side. This means I got addicted more to the dopamine than to the actual trading. Later on, I read a lot about gambling addiction and started to understand the subtle mechanisms of it.
That’s what I love to share with you so you can identify possible red flags. And jump out of the bandwagon running full speed to the cliff of your bank account.
Everybody is free to spend their money on anything, and I don’t want to be telling people what to do. On the hint side, however, If I had come across this article before opening a Bybit account, I might have been more cautious.
I also realize this;
Sometimes we just need to ride the complete wave, find ourselves shattered money ripped-off on the beach, naked. In order to learn our lessons. I guess many R/Wallstreetbetters couldn’t agree more. Sorry Guys, I feel your losses.
Nevertheless, here are my red flags.
Don't go Bitcoin leverage, unless you have completely mastered your emotions, you have limitless money to throw out of the window or are the 1% professional.
Getting high on dopamine betting your monopoly money
Dopamine is a powerful mind-altering compound, responsible for the high induced by cocaine. Consequently, it is also implicated in the addictive and entrancing aspects of trading-Daytradingpsychology.com
With online leverage trading, you look at a screen with some candles moving, crazy order book action, and some numbers changing. It all starts with a harmless thrill, maybe some beginners luck even. So you raise the leverage, put in more money. They didn’t tell you it was that easy!
You envision big wins. You get a very vivid picture in your mind of the immensely satisfying goal just ahead. Here comes the Lambo!
You’re now in what’s called a Trading Trance
The price suddenly tanks. The famous Bitcoin volatile move just knocked you out. This gives a nasty feeling of loss, touches your pride. You know it is so easy for BTC to change again. Now you will be smarter. You’ve just learned your lesson. Eventually, you will beat the system, just a matter of time.
Here you go again. Welcome to the Dopamine Trap.
Now the digital numbers slowly become disconnected from real-world money. Losing $1000,- can take 2 seconds on Bybit, in the real world you can buy quite some groceries with it.
Admit you’re a Bybit Junkie
The following is my description of a ByBit, or leverage Junkie.
It’s not about the trade anymore, it's about getting your next shot of being in a leverage position. You’ve entered the next level; an obsessive desire to repeat and prolong the pleasure.
The risk of losing $1k or $10k or $100k in a day becomes pleasurable too.
You slowly lose all sense of time, forget to eat, don’t respond to friends that are calling. Mostly after a short night sleep, looking at your losses in the morning, there comes the pain. A strong reaction of the body to the depletion of dopamine.
The realization of how much real-world money just went down the drain. An expensive hobby and your precious time that can be spent better.
The above are all red flags.
When you recognize one or more, talk about it with your best friend, somebody you can trust. Go past possible shame. Accept you’re in it, and activate some deep down Ninja warrior discipline to take a break. A break is all you need.
Delete the app, take your losses, and focus on real work again.
Professional traders make trades that take weeks or even months. And often wait weeks for a trade. They use futures and have multiple accounts. Ask yourself if you have this level of dedication or you are in for the quick win?
Trading = Low risk x Patience
YouTubers advising you — making money on your losses
There are many Bitcoin Trade YouTubers out there. Carl the Moon, MM crypto, Crypto Zombie etc.
They all want Bitcoin to shoot through the roof. And why not.
They also advertise for Bybit. I believe in their good intentions, I learned a lot from them in my initial Bitcoin trading steps. I learned about basic Technical Analyses.
Now I know better.
- First of all, they all act from their own bias since they trade themselves.
- Second: they are not transparent about the fact that, when you lose, they will gain. Your account is linked to their affiliate Bybit referral. They hook you in with a time-limited special entry bonus ranging from $60 to $100,-.
- They do warn their viewers that leverage trading is only for professionals, but their videos are not for that target audience.
So why promote this stuff to your followers when they are obviously not the 5% top traders that actually can make some money using leverage?
Doesn’t smell like a clean business.
Greed will kill you
Bitcoin has parabolic run-ups. We are in one of those right now. An epic green candles orgasm that lasted for weeks.
That has, by the way, just ended over the weekend. The charts are now bleeding red of panic sales. But a tipping point will come soon.
Bitcoin is there for the big gains, and you need patience. Hodling is the name of the game. You then win big amounts of money by doing absolutely nothing. All you need to do is looking at the daily pumps.
Still, you decide to leverage.
Why would you want to make this more? What is that thing called greed?
Greed will forget you to value what you have, and instead it will never be enough. So you lose both ways
I know people that have lost a lot of money even while Bitcoin shooting to the moon.
It doesn’t matter what the game is, Greed will make you lose. Because you were not happy with what you had in the first place. If you are, you don’t need more of it, it’s that simple.
The leverage needs to be paid —ask yourself how?
Bybit and some other leverage, trading platforms have enormous turn-overs. Some people make huge gains, and they need to be paid.
Exactly, by the less experienced newbies. I am absolutely sure that only a max 5% of the traders on Bybit make money, the other 95% pays for them, for the YouTubers with referral links, and for the platform itself.
Let this sink in.
When it’s so easy to win, those platforms would not exist. They are the big Crypto Casino’s and you are the bait. The 5% top of the bill is laughing at your expenses.
Trading has become an app. The colours, mechanisms have been optimized to hook you in and keep you in the leverage trap. The designers know how your inner psychology works, where you’re weak.
You are in a trade with one click. Compare this with a like on an Instagram photo. Its the same mechanism x 100.
It screen time dope fused with real-world money.
I needed to learn my lesson, and somehow I am grateful for it. In fact, I learned a lot about technical analyses and the world of trading.
I explored the dark side of Bitcoin.
The dark side of Bitcoin exposed
Trade Manipulation and why Bitcoin will drop to $8.500 very soon
I also learned that I am not a trader, I am a Hodler and I value what I got.
Connecting with real people instead of a screen with rolling numbers.
I respect the professional traders, their patience and dedication. I love Bitcoin, but moreover its disruptive promise and the role it plays in the current revolution of money.
I have now included and integrated my leverage experience in my work as a crypto educator. I am confident that in the long run that will pay out more than I have lost and will make me feel much better on the way.