# Trading Temptations The Moon Shot By [joella stjames](https://paragraph.com/@joella-stjames) · 2021-12-02 --- Today’s article is a follow up from a previous one I published focusing on the psychological impacts of trading. Here is a ink to the article if you would to have a read – [https://www.loop.markets/mind-over-matter-trading-psychology/](https://www.loop.markets/mind-over-matter-trading-psychology/) The last few weeks of price action on Bitcoin has been extremely volatile. Market sentiment has been and remains extremely bullish with many people simply expecting a $100,000 price by the end of the year. For this reason, I wanted to publish an article that I hope will place some perspective on the impact of taking an unnecessary trade that is driven by the desire to make a bucket load of easy $$$’s. With such bullish market sentiment, the internal mind games begin. Many are starting to think about the possibility of one high leverage dream trade that will provide a level of financial freedom when Bitcoin moons. The FOMO is kicking in and it’s hard to ignore or get away from, the appetite to take that trade is increasing. At times I find myself in this same situation, the desire to take a high leverage trade and then just simply ride price up to $100,000 and make thousands of $’s along the way. The reality however is somewhat different as being able to confidently time the bottom of a correction requires skill and a lot of experience. You only have to read a twitter feed now to see how many people have been calling  the bottom of this latest correction and getting it wrong.  Having such a one-sided bias and mindset is the perfect recipe for disaster, it will eventually result in liquidation or at a minimum a sizeable financial loss. The impact of such a loss is profound and it will in most cases drive you to take more bad decisions. Revenge trading is a common reaction after taking a loss as the desire to make that money back quickly increases, the problem however is that during this time you are not thinking clearly and the decisions being taken are not considered. When you are in the trade the mind is in complete overdrive, stress levels are increasing and you begin to wonder what an earth you have just done and why. It will not only impact you but also those around you because your behaviour will change as you become far less present in the moment. All you can think about is whether price will turn around before you get liquidated. At this stage, you can only hope it does. So before you decide to place that one dream trade, ask yourself some questions; 1. Am I prepared to lose the trade? 2. Do I know what the loss will be? 3. Can I afford to take such a loss? If the answer to any of those questions is No, please do not take that trade. Reevaluate your position size if needed to a point where perhaps the answers become yes. I would suggest you consider the following. 1. Where to place the stop loss. This should be based on invalidation of the idea so that you know when your TA Is wrong. 2. Risk to reward ratio. This is crucial to determine if it’s even a good trade to take in the first place. 3. Where could price turnaround and potentially reverse. Identify key levels of resistance and take some profit, this way whatever happens you make money once price hits a certain level. 4. Ask yourself the same set of questions as above. The answers need to be yes. Applying the correct risk management will give much greater control on the outcome of your trade. It will help minimise losses should the trade go against you.  And finally, you must always be prepared to lose because you will always lose some trades, that is just part of the game we play.   Trade safely everyone.  ![](https://storage.googleapis.com/papyrus_images/1eb4d260b2b7f5d68691894f3a6a57e06f2900447d829f00c8df188070051434.jpg) --- *Originally published on [joella stjames](https://paragraph.com/@joella-stjames/trading-temptations-the-moon-shot)*