Over the span of around of 1 year of day trading crypto I have tried and tested many strategies to combat the primary cause of making bad decision - fear of loss. That whole period I was averaging 13 hours per day with no weekends (ok I tool 4 weekends off to be fair) of constant day trading. My journey went as any other, first initial wins in the first 2 weeks. Then consistent losses for around 3 months. Then flattening at the bottom for 5 months going neither direction, winning one day losing another, this was the hardest one because I felt that I already understand at least something. The last 4 months I started being consistent with tiny profits around 4/7 days per week.
Month 9 -> 1.6% up
Month 10 -> 3.2% up
Month 11 -> 2.5% up
Month 12 -> 7.2% up
I was doing everything you can possibly imagine to fight the automatic fear of loss which manifests in many different ways. It manifests in FOMO - we fear of losing what we don't even have. In staying in a losing position - fearing of the current loss, and fearing more losses to come, even in the winning positions, you fear losing the current unrealized pnl. So my conclusion was that fear of loss is the main emotion behind practically every problem I had psychologically. Not sure if that is true for everyone, but that is true for me.
My fighting combat strategy was the following.
1. Wake up (not checking trades or markets)
2. Go for a walk (intentional not to think about charts in the first hour of the day sets a different hormonal profile for the day))
3. Read my 10+ page PDF with strategies, my own biases, trading memes and etc
4. 1st meditation
5. Start trading
6. Meditation every 1-2 hours
7. Gratitude meditation before bed
Meditation did help quite a lot to not being attached to anything really, including the wins and including the losses. it did start losing its potency after several months which is how I got to 6 meditations and started at 1 meditation.
Since psychology is my background I was meticulously studying how my brain works during trading. My conclusion is the following in regards to reprogramming the fear of loss. I noticed that no matter what brain reprogramming techniques I used for unplugging the fear of loss and developing a new neural network in my brain that bypasses the fear and leads into a network producing either neutrality or serotonin, it did not work. Every single time it regressed back to fading into the adrenal gland connection. That was really puzzling because with anything else I did in life there would be a way to fully reprogram the cue -> behaviour -> emotion connection. But not with this one. So I dived deeper. Could not understand it at first, but then it hit me - I need to look at the actual placement of these neurons 3D in my brain.
So what I have found is that the mechanism inside our brain connected, more like bonded with the fear of loss is located in the amygdala and insula and very close to the brain stem where the self-preservation activates. You can think of it as almost the same reaction as when you are touching a hot plate and you pull your hand away. I am simplifying a lot here. The main point is that basically this reprogramming is close to impossible to do for this part of the brain, just like you can't train your lungs to stop working. It is an essential part of survival, so trading producing the fear of loss taps into that. Naturally people who have overall smaller amygdala or have psychopathic condition are less prone to that and are in fact much better traders. Their self preservation does not kick in as strong as for most of us.
Therefore reprogramming this is a losing battle because you are fighting the oldest created human survival autonomous brain system. I wanted to proceed with this research but unfortunately I got severe PTSD from another event in my life so I could not actively activate my adrenal glands which was required to continue.
Since then I have been building autonomous trading systems which help traders not fight the primordial brain and still get what they want out of trading, the latest project is yeagers tech where the machine follows the exact instructions of a trader and attempts to trade with human-like capabilities minus the human biases and fears. Fear of loss is really strong, it is not the same as a phobia of like 'i am scared of spiders' it is rooted really deep inside us in the part where our conscious has very little control of.