Improving our mindset with the mistakes we make in Crypto.

Most people are afraid of making mistakes and wrong choices, striving for perfection. But is this possible? In my opinion, in today's world where change is accelerating so rapidly, it will never be possible to talk about perfection. Because everything, from the technologies we use to the knowledge we possess, cannot maintain its relevance for a very long time. Especially in the financial world, where humans and social structures are involved, it will never be possible to execute flawless transactions. After all, in a multiplayer world, you face many things from individuals to corporations, algorithms to artificial intelligence, and you are trying to earn their money. Moreover, when we add your individual life, emotional state, work life, etc. to this equation, things become even more complicated. Therefore, you must first realize that it is inherent in this job to make mistakes and to be able to make wrong decisions.

Gaining more accurate and effective skills through the mistakes made

From an evolutionary perspective, we can say that Homo Sapiens, which we can call the first modern human, appeared 300,000 years ago. Since that time, humans have undergone numerous changes in both physical terms, such as brain structure and body type, and in the context of cognitive processes and skill development. In other words, we were not in the state we are now at the beginning. For example, while we used to have stronger jaw muscles, the discovery of fire made it possible to consume cooked and soft foods, which led to a reduction in our jaw muscles. Many other physical examples can be mentioned. If you recall the example in our article about Error Management Theory, you might remember that our ancestors who thought there was no lion in the bush lost their lives and disappeared in the evolutionary process, while those who believed there was a lion when there was none or thought there really wasn't a lion survived. Therefore, the mistakes made actually led humanity to evolve to a better place and acquire more accurate and effective skills. We should look at the financial markets with a similar logic. So how can this be possible?

Face Your Failure

According to Carol Dweck, there are two types of mindsets: fixed and growth-oriented. Individuals with a fixed mindset believe that intelligence, abilities, and skills are static, unchangeable, and that failures stem from personal deficiencies. These individuals tend to avoid facing failures and challenges. On the other hand, according to the growth-oriented mindset, intelligence, abilities, and skills can be developed through considerable effort, learning, and perseverance. For these individuals, failures, like successes, are a part of life; everyone can make mistakes and challenges will not leave us throughout our lives. Instead of avoiding all of this, facing them, and striving to learn by viewing mistakes and failures as opportunities for growth rather than something negative is a much more correct approach. I would like you to think about the areas where you have made mistakes throughout your life. What would happen if you had given up riding when you first fell off the bike, or if you had quit trying to swim the first time you swallowed water, or if you hadn't applied anywhere else after being rejected from your first job interview? We can count many examples like these.

At the beginning of our writing, we talked about the evolution of humans. As an individual opinion, I am one of those who believe that humans can adapt to every environment they find themselves in. Throughout my life, I approached many jobs I undertook with the perspective of "If others can do it, why can't I? After all, we all started from the same place, that is, from scratch." For me, beginnings have always been difficult; sometimes I encountered the right mentors along the way because I was lucky, and sometimes, on the contrary, there were people who made my path even harder, but I continued to try every time because I maintained my belief that eventually, things would become routine for me.

Keep striving and learning

I went through the same thing with my experience as an investor and trader. Since I was lucky when I first started, I listened to the experiences of people who started this path before me and worked hard. In my free time, I learned to read graphs, attended many trainings, and tried to learn as much as I could. As I mentioned in my previous articles, my first month as a trader was perfect for me, 19 of the trades I bought resulted in a gain and 2 resulted in a stop. After that, I gave all my earnings back with one wrong pose, there were many times when I thought about quitting at that point, but each time I tried to remind myself that this was a journey and that I needed to give myself time. As I mentioned in my previous article, once I wake up, it is not possible to sleep again, so I continued to strive and learn. I started to learn from my mistakes, evaluate what I did right and what I did wrong, and took a lot of notes for myself so that I wouldn't repeat the same mistakes.

Many people may consider quitting or giving up after encountering failed transactions, and you may think so too, and there is nothing wrong with that. In my opinion, it will never be possible to avoid a failed transaction; even if you make a lot of money on one transaction, the possibility of losing more on the next one will always exist. However, how you evaluate the mistakes you make at this point will be the key difference. I learned that the financial markets do not show mercy for the mistakes I made that day, that I could lose all my money in a single transaction, that ridiculous movements can be seen, and that I must stick to my rules and principles, in addition to conducting my transactions with stop-losses. In summary, making mistakes, losing money, and failing are part of the business, and instead of being afraid and running away from them, what we should do is to face them and continue to learn and strive.

This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research when making decisions.