Trading cryptocurrencies is a matter of learning technical analysis, but the hardest part is controlling your mindset. The following five psychological traps can be enough to make you regret it.
1. Fear of gain and loss, overly anxious
Newcomers are the most susceptible to this. When the market fluctuates a few points, they get so nervous they can't sit still, fearing to lose a little or fearing a crash if they gain a little. The root cause is still knowing too little and thinking too much, lacking a basic understanding of the market. If this emotion cannot be shaken off, you may not be suited for trading.
2. Following the crowd, blindly going with the flow
Whether it's blindly following calls from a group or mindlessly copying a big influencer's trades, the essence is a lack of confidence in oneself or a desire to take shortcuts. The market easily forms a 'mob mentality' effect; when the majority of people have the same viewpoint, the risk is often magnified. Those who truly survive as traders maintain independent judgment.
3. Stubbornness, refusing to admit mistakes
Not admitting when wrong, not changing ineffective strategies, and holding onto losing trades until the end—this is not persistence, it's luck. Many people end up blowing up their accounts not because they can't read the market, but because they refuse to cut losses. The market doesn't mind giving you a reality check, but you must accept the fact that 'if you're wrong, you need to admit it.'
4. Regret-driven, emotional revenge
Missing out on a market wave or making a wrong trade can lead to a desire to vent frustration. And then? When emotions run high, they start to trade impulsively: frequent orders and heavy bets, only to go further astray. Remember, after a loss, the best thing to do is to stop and calm down, not rush to 'make it back.'
5. Underestimating the situation, overconfidence
Especially after a series of profits, it's easy to feel invincible. Thinking you’ve 'figured it out,' you start to randomly increase your positions and relax your discipline, only to have a reverse market take back your profits. The market is always ready to challenge any form of complacency; maintaining caution is the key to long-term survival.
In the end, trading cryptocurrencies is ultimately a game against oneself. If you can control your actions, keep your emotions in check, and not be swayed, you have already outperformed the majority. @bit萧
