So something I see from many newer investors is they seem to think those who been around for a while are always calm and level headed. The truth is, most have major mental problems or RL problems at times. And many who has been around the investment world for a while know when to walk away for a bit.
# There is no shame in walking away for a little while for mental health or RL reasons.
In fact, if you have to walk away back to back. Then don’t worry about it. I had to walk away for mental reasons 2 times this year, and I can get into the why if anyone wants to know.
Note I’m not a financial advisor, but this is how I do it.
1. Have a long term investment plan in mind. Something that you can quickly go to if you ever need it. Like for example, if I invest $10k into meme coins for short term gains and something happens. What I might do is have something in mind that if I need to I can set trailing stop loss on them. When it triggers I will have notes on how much to take out % wise for taxes, and to put the money into something long term like BTC or ETH. Basically, you want as little time as possible if you need to jump back in while you’re fixing yourself.
2. Have checks in places. Because I’m autistic and can hyper focus on things I use that as a check. But you can use things like friends/family letting you know you changed. Or you can use other things depending on your situation. Like do you consumer more x thing way more than normal, then maybe something is up.
3. If you can try to work through it because the longer you’re away from the market the more time is needed to relearn the market. Like I think if you stay away from a month then it doesn’t matter at that point since it could take a solid week to relearn the market. But closely look at things because you now suspect your mindset is compromised.
4. If you can’t fix whatever in 3 or think there is too much of a risk you staying in the market, use step 1 and leave the market. There is no shame of it. But at the point start working on your mental health or whatever real world problem.
5. When you get back normal take note what caused the problem to start with. Like it could be small things like what you eat, or it could be something bigger. This will help with 3. Like something a lot of people who are autistic found out and IDK if this is exclusive to us. But process flour foods (bread) can really mess with things. And for me I find I need to take 2 week breaks when this happens and try to stay away from it.
NOTE: during that time I might still do TA because I find it fun like a game. Patterns are like puzzles and when the price does what I think it will do if I get the pattern and everything right, then there is a reward in that. But if it is too bad, then I might stop doing that too.