The art of trading psychology: How to avoid the loss of cryptocurrency markets
Cryptoons were wild for investors, fluctuating wildly. While so is a wealth, many are stillers. For Comoon fiber dealers who have experienced losses, it will determine the consequences of leaning on fundamental decision -making. In this article we will examine how to get in
Understanding Trading Psychology
Psychology trading psychology refers to the media and the factors that affect the decisions of the markings. It is a complex interaction between cerebral chemistry, supersonal experience and external pressure. When trading in cryptocurrency, psychology plays a significant role in trading psychology. Merchants can be the victim of various psychological pitfalls, including the following:
- Confirmation Distortion :
- Emotional reactivation : Overreaction to mobile events, for impulsive decisions.
- Fear and greed : To enable environmental love and greed to dictate trading decisions and this is due to environmental trigger events.
Strategies to treat trading psychology
In order to avoid the losses of cryptocurrency markets, strategies should be developed to help stay calm during the relaxed Union and the reasoning. Gere Areo Effective Techniques:
- Stop clear goals : Define investment goals and disk assets, the brand. It helps to focus on long -term purposes, not environmental fluctuations.
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- Use Stop-Loss Orders : Determine prices for selling or closing places, especially for obscure signs.
- Be informed, but avoid excessive thinking : Continuously monitor brand developments, but not too much trade. Keep anmind, but remain objective and focus on yours.
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- Stay discipline : Contact your broadcasting plan, even with intense emotions or short -term markets.
Case Studies: How did psychology led to losses (and learned)
- Bitcoin Bubble 2017 : Many merchants thought that the price would continue to rise in an indefinite period, ignoring technical analysts’ warnings and basic analyzes.
20 y the sudden sale.
The Lessons I have learned
We identified SOOME KYAAWAYS from check studies and one of the pastes:
- Emotional decision -making is one of the main obstacles to success
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- Risk management Crocal
: Always have a priority to reduce and potential wholesale to enter.
- Be informed, but do not think : Continuously monitor market developments, but avoid the press analysis or speech.
Conclusion*
The power of trading psychology can help navigate.