📊|You can make money in the true sense only if you understand human nature
📌Whether it is stock trading or cryptocurrency trading, it is all about human nature. For a long time, there has been a saying in the investment community that has been repeatedly mentioned: "Investment is anti-human nature. Only by overcoming human weaknesses can you make money." Many people lose in the cryptocurrency market because of their psychology, which has nothing to do with technology
💡For example:
You enter the casino with 100,000 yuan and win 50,000 yuan. People tend to separate their 100,000 yuan principal from the 50,000 yuan they win psychologically, and regard the principal as "hard-earned money" and the winning funds as insignificant wins and losses. This psychological phenomenon reflects an irrational behavior, because once you leave the casino, there is no difference in actual value between the original funds and the winning funds.
Especially for friends who have played Texas Hold'em🃏, you should have a better understanding. When you win a few times, you will become bolder, and you dare to follow even if you have bad cards, but this will cause you to go from profit to loss, and this process is quite torturous to human nature. At this time, you often want to win back, which leads you to fall into it❗
🔻This behavior of dividing funds into different mental accounts is the object of behavioral finance research. Behavioral finance combines psychology and behavioral science theories to explore irrational behavior and decision-making patterns in financial markets. In investment decisions, this irrational thinking may lead investors into misunderstandings, and identifying and avoiding these misunderstandings is crucial to making rational investment decisions.
♦️In summary, we should adopt a vulgar strategy, leave if you win, and hide if you lose if you are unlucky. Just like playing Texas Hold'em, follow if the cards are good, and throw away if the cards are bad🫰🏻
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