How to Get Back Into Crypto Trading After a Long Break

Returning to crypto trading after a significant break, especially following losses, can be daunting. 

Many traders share your experience: blowing up their accounts, feeling emotionally drained, and questioning their abilities.

The good news is, with the right mindset and strategy, you can make a successful comeback.

Here’s a comprehensive guide, inspired by real traders’ advice and proven practices.

1. Address Emotional Triggers and Build Discipline

• Remove Emotional Cues: Hide your P&L (profit and loss) from your trading platform to reduce emotional reactions. Consider changing your chart colours to neutral tones (like black and white) to create a calmer environment.
• Limit Trades: For the first month back, restrict yourself to a maximum of three trades per week. This forces you to be selective, patient, and focused on quality setups rather than quantity.
• Use Timers: Set a repeating timer (e.g., every 5 minutes) to pause, refocus, and check your emotional state. If you feel the urge to revenge trade, start a 10-minute timer. If you still want to trade after that, proceed, but you’ll likely have calmed down.
• Discipline Beyond Trading: Incorporate healthy habits like exercise, proper nutrition, and meditation to strengthen your discipline and mental resilience.

2. Start Small and Practice Safely

• Trade With Small Amounts: Begin with a small deposit or use a simulated (demo) account. This reduces pressure and allows you to rebuild confidence without risking significant capital.
• Gradual Scaling: Once you’re comfortable, slowly increase your position size. For example, start with micro contracts or small share sizes, and only scale up as your consistency improves.
• Set Strict Loss Limits: Define a maximum loss per trade and per day. If you hit your daily loss, stop trading and reset the next day. Never try to “win it back” immediately.

3. Revisit and Refine Your Trading Plan

• Analyse Past Mistakes: Instead of dwelling on losses, review your previous trades to identify what went wrong. Was it poor risk management, lack of a clear plan, or emotional decision-making?
• Develop a Clear Strategy: Test new strategies with small trades or in a demo environment. Focus on risk management, entry/exit rules, and position sizing.
• Journal Every Trade: Keep a detailed trading journal. Record your reasoning, emotions, and outcomes for each trade. Review your journal weekly to spot patterns and areas for improvement.

4. Focus on Learning and Community

• Continuous Education: Spend time reading, researching, and learning from books, articles, and experienced traders. Consider resources like “Trade the Traders” or similar educational material.
• Find a Mentor or Community: While finding a mentor can be serendipitous, joining trading communities (online forums, Discord groups, or local meetups) increases your chances of connecting with experienced traders willing to share insights.
• Practice Patience: Accept that mistakes are part of the process. The goal is to learn from each one and avoid repeating them.

5. Adopt a Long-Term Mindset

• Treat Trading Like a Profession: Approach each day with a plan, and treat trading as a skill to be honed over time, not a get-rich-quick scheme.
• Rest and Reset: If you experience a string of losses, take a break. Go for a walk, spend time with family, and return with a clear mind.
• Celebrate Small Wins: Focus on consistent, small gains rather than chasing big wins. Over time, these add up and help build confidence and discipline.

Four Practical Tips for Crypto-Specific Trading

1. Learn and Apply Risk Management

• Set Clear Limits: This sounds simplistic, but it is tested and proven advice -only invest money you can afford to lose.
• Use Stop-Loss Orders: Always set stop-losses to automatically exit losing trades and protect your capital. Adjust stop-loss levels based on technical analysis and market volatility.
• Avoid Over-Leveraging: Leverage can amplify both gains and losses. Start with low or no leverage until you have a proven, consistent strategy.
• Assess Risks Systematically: Identify potential risks (such as market volatility, security concerns, and regulatory changes) and develop a plan to address each one.

2. Diversify Your Crypto Portfolio

• Spread Investments Across Assets: Don’t put all your funds into a single coin. Allocate your portfolio among established coins (such as Bitcoin and Ethereum), promising altcoins, and stablecoins for balance.
• Diversify by Sector: Invest in different areas of the crypto ecosystem, such as DeFi and AI coin projects to capture growth in various segments.
• Use Dollar-Cost Averaging: Invest fixed amounts at regular intervals to reduce the impact of market volatility.

Example of a Crypto Allocation For Your Porfolio:

3. Stay Informed and Updated

• Follow Reputable News Sources: Regularly check trusted crypto news sites like CoinDesk, CoinTelegraph, and CryptoSlate for market updates and regulatory news.
• Subscribe to Newsletters: Get curated news and analysis delivered to your inbox from sources like The Daily Hodl, Messari’s Daily Brief and WAGMI Weekly.
• Engage with Communities: Join crypto forums, subreddits (e.g., r/CryptoCurrency), and Telegram groups to discuss trends and get real-time insights.
• Monitor Social Media: Follow industry leaders and analysts on Twitter for breaking news and expert opinions.

4. Practice with Demo Trading Before Going Live

• Use Simulated Trading Platforms: Start with demo accounts to practice trading strategies in real market conditions without risking real crypto
• Set Realistic Goals: Treat demo trading seriously. Set goals, use stop-losses, and track your performance as if it were a real investment.
• Test and Refine Strategies: Use the demo environment to experiment with different approaches, technical indicators, and risk management techniques.
• Build Confidence: Only transition to live trading once you consistently achieve positive results in your demo account.

Tip: Combine these strategies for a holistic approach: manage risk, diversify, stay informed, and practice before committing real capital. This will help you build confidence, avoid common pitfalls, and increase your chances of long-term success in crypto trading

Sample Daily Routine for Returning Traders

To Recap: Getting Back Into Crypto Trading

• Control emotions by hiding your P&L, using neutral chart colors, and limiting trades.
• Build discipline with timers, structured routines, and healthy habits.
• Start small using demo accounts or minimal capital, and scale up only when consistent.
• Refine your trading plan by analyzing past mistakes and journaling every trade.
• Keep learning through books, articles, and trading communities.
• Manage risk with stop-losses, strict loss limits, and by avoiding over-leveraging.
• Diversify across different coins and sectors; use dollar-cost averaging.
• Practice in demo mode before trading live to build confidence and consistency.

Disclaimer: This article was written to provide guidance and understanding. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.