The feeling of losing in poker or the stock market is the same, no matter if you lose your perfect hand or your investment drops by a lot.
Traders in the crypto market have to stay emotionally calm to survive the tough bear markets.
Funnily enough, the mindset of professional poker players is the best way to handle all the confusion.
There are more similarities between these stories than what appears at first sight.
In both areas, people need to make fast choices under high stress, as a moment of emotional loss can spoil all the time spent preparing for an event.
According to Annie Duke, a former poker champion who works as a Wall Street consultant, the transition between the two fields is very accurate.
She notices that seasoned traders do the same things she’s seen in high-stakes poker rooms, which is a clear sign of people struggling with their emotions while using their strategy.
When Losses Hit: Tilt in Poker vs. Crypto Trading
Being in tilt makes people playing poker or trading take actions they normally would not.
After a player gets a bad beat, it is possible to use psychological skills in poker. Crypto traders refer to it when a seemingly solid trade collapses under the influence of big changes in the market.
Bear markets tend to cause tilt triggers to happen more often.
Traders are in the same situation as poker players when they do not know what is influencing the market.
Even perfect strategies can lose money in times of market drops, proving how poker can be hard on players, statistically.
People tend to feel more attached to the losses they suffer. Negreanu points out that strong emotions take over and make people play cards that are not wise.
Crypto’s main danger is that there are no clear human signals for traders to use in controlling their emotions.
Because players and the deck are real in a live game, there are regular stops during the gameplay. Crypto markets keep going 24/7, without any pause, and not even a step away can bring a fresh view to the game.
Trading takes place with charts that are like slot machines, always trying to get investors to remain focused on the market.
The reasons Live Poker is like Crypto’s emotional roller coaster
Consider Live Dealers poker. Under the gaze of others, when every tiny move is noticed, controlling your emotions is equally as necessary as coming up with a good strategy.
Just like in important poker tournaments, crypto trading during a bear market becomes very intense.
- The fast changes in prices are similar to the intensity of poker’s highest hands.
- The anonymous users on the market try to take advantage of your errors.
- Since there is no one to help you, frustration can become stronger.
It is important to recognize how much isolation affects people. Poker may be played alone, but it occurs in social areas where people’s expectations and influence prevent anyone from taking major risks.
A casino player who is showing signs of frustration gets immediate reactions from those around them, as well as possible assistance from the staff.
Since they work in private, crypto traders may not get the same reminders from the world around them.
Without realizing it, emotional trading can lead to heavy losses, which are the only thing that can make someone see the problem.
Tilt-Busting Approaches Offered by Poker Experts
Negreanu and Phil Ivey are famous for looking at tilt as a situation that can be handled with logic. Traders can apply their techniques to the crypto world.
Spot Pre-Triggers
Before anything happens in the markets, stress, not sleeping enough, and financial pressure can set you up for tilt.
Players in poker usually skip games when they are feeling emotional. It is important for traders to check their mental condition before they start trading.
Let out your frustrations, Then Begin Again
After suffering a tough defeat, Negreanu likes to do the following:
- Let your anger out by yelling into a towel if you have to.
- Look for any tight areas in your body.
- Be aware of the mindset you want to use next.
For traders: Finish using the charts. Breathe. Check if you conducted yourself according to your strategy.
Concentrate on the Progress You Make, Not Only on the Outcomes
Jared Tendler reminds traders and poker stars that dealing with variance is inevitable, and it means there will be losses.
It is not your duty to judge the results but to make high-percentage decisions. Keep a record of your decisions to see how well you are doing.
Make Use of Mental “Stop-Losses” Whenever You Trade
Poker players quit playing when they get upset. It is important that traders have the same rules.
- After your portfolio is down by 5%, stop for 90 minutes.
- If you start second-guessing yourself while in the middle of a trade, end the trade and move on
- Don’t try to make up for your losses by taking revenge trades.
See Your Losses as Ways to Gain Useful Information
Experienced players go over their losses to find where they could have improved. In crypto, it is important to ask:
- Was this just an event that happened by chance?
- Did I overlook the process of managing risks?
- How does it show us the way people think in the market?
The Tilt Crypto Faces (and Ideas from Poker to Help)
Because cryptocurrencies are always moving, traders can’t get enough wild swings. Solution: Set up dates for your sessions.
Work on your trading just like a professional athlete, restricting your time but focusing fully.
Being beaten by an anonymous player on the stock market is as bad as getting poker suckouts from someone with a screen name.
Solution: Think about the people within the market. Keep in mind: For every trade, both parties have different fears and goals.
Confirmation bias means that people in losing trades keep hoping for a lucky turnaround, just like poker players waiting for their lucky cards. Solution: Determine ahead of time what will make you take profits or cut losses in every trade, and stick to your plan
Because the cryptocurrency market is always open, it presents a special problem that even top poker professionals find hard to overcome.
Unlike regular poker tournaments that begin and end on schedule, crypto trading goes on without interruption.
As a result, people may not make the best decisions after a long period of thinking. David Williams, a former World Series of Poker winner, says that the nonstop chance to trade is so similar to gambling addiction that it becomes impossible to tell one from the other.
Lessons learned during a Bear Market
Being detached from money is the best way to recover from a tilt. Chips should be looked at as tools instead of valuables.
Take care of them, but don’t be sad when they are gone. Crypto traders also manage to survive tough times by respecting their finances and not worshiping them.
Platforms like CryptoManiaks demystify this mindset shift, offering guides on risk frameworks used by poker-minded traders.
The information they provide links theory with actual practices, which is very important when feelings are running strong.
Final Hand: How to Train Your Mind
Just like poker downswings, bear markets make you deal with uncertainty. According to Tendler, the mental game means creating a space between your feelings and what you do.
The trader who stops to calm down, rethink, and check their strategy is the one who can continue trading after a big drop.
In the long run, outstanding crypto professionals are similar to poker greats because they lose with more grace. Although tilt is part of poker, letting it take over is not necessary.
Being emotionally stronger than others is what gives you an edge, not foreseeing the market. This is why those who are disciplined can quickly recover when the bull market comes back.