With large price swings and markets operating around the clock, crypto’s volatility can not only impact your investments but can also take its toll on your mental wellbeing too.
While 2020 “officially became the most stressful year in recent history” according to Gallup, ‘Burnout’, the mental and physical exhaustion experienced due to prolonged exposure to stressful situations, is now recognized as a chronic condition by the World Health Organization.
And with money being one of the most common causes of stress, crypto traders are at a heightened risk.
To prevent experiencing burnout, we’ve put together five tips to help you keep a level head when trading and prioritize your mental health.
- Create a daily schedule — and stick to it
The markets may operate 24/7, but this doesn’t mean you should too.
Create set trading hours, and ensure you include breaks throughout the day to eat and get some fresh air.
Scheduling time for exercise will also help prolong mental stamina and reduce stress.
2. Recognize when FOMO kicks in
FOMO — Fear of Missing Out. We’ve all experienced it, and at one stage or another, we’ve probably all acted on it. Your social channels are brimming with posts boasting potential gains on a certain token, and you dive in headfirst.
The risk of allowing emotion to take over can lead to us neglecting trading plans and potentially investing more than we can afford.
The first step of overcoming FOMO is recognizing when it kicks in, and acknowledging that this reaction lacks any long-term perspective.
Stick to your trading plan, and think with your head — not your heart!
3. Keep a trading journal
Keeping a log of your trades will help you to identify patterns more easily. This practice will not only keep you on track for long-term success but will help to grow your confidence in trading too.
At a minimum, keeping a track of your entry, top, and limit price will help you identify the characteristics of your wins and losses, enabling you to refine your strategies.
4. Take regular screen breaks
Taking regular screen breaks is not only important for preventing eye strain and headaches but also for your concentration and overall productivity levels.
Try the 20–20–20 rule — every 20 minutes, look at something around 20 feet (around 7 yards) away for 20 full seconds.
They say it takes on average 66 days for a new behavior to become a habit, so for now, set a reminder on your phone for every 20 minutes and practice giving yourself a little less screen time.
5. Last but not least, get enough sleep!
Prioritize a good night’s sleep.
It’s an essential function, and without a decent amount of it, you increase your risk of disease and prevent your brain from functioning properly.
Trading performance is as much about mental stamina as it is anything else. Ensuring your body and mind have time to recharge should be a key component of any trading plan.
- For more tips on how to identify and prevent burnout visit Mind Tools
- For tips to reduce eye strain and headaches see the American Academy of Ophthalmology
- For help switching off, try meditation app Headspace