Why do we often feel that "it falls as soon as we buy and rises as soon as we sell" when we are speculating in cryptocurrencies?
In fact, the secret behind this is quite simple, but also profound - our emotions coincide with those of most players, and our actions are naturally synchronized.
Imagine that when you hold a coin in your hand, you are mostly thinking about when to sell it. At this time, you are actually hovering on the edge of "potential bulls" and accidentally slipping into "shorts waiting for opportunities". On the contrary, if you don't have coins in your hand, your eyes are on the market, and you are eager to enter the market at a low price. At this time, you are a complete "bull waiting for the wind".
Most people like to follow the trend, chasing when it rises happily and running away when it falls sharply. When you and most people excitedly take over at a high position, the bulls in the market have almost used up their strength, and the next step is the stage for bears, and the price will naturally go down.
On the other hand, if you panic and sell with everyone at a low position, the short force in the market will be almost consumed, and the rest are firmly bullish, and the price will naturally rebound easily.
How can we see everyone's emotions? Trading volume is a good mirror, and we also need to look at the face of the market, as well as the endurance of those popular concepts and the vane of news.
In a bull market, everyone is extremely optimistic. Chasing the ups and downs is just to speed up the heartbeat. As for money, most of the time, you can still make some money. But if you play like this in a bear market, you will be trapped if you are not careful. It's as deep as the sea. In a volatile market, it's like shooting arrows from both sides, and there are endless slaps.
As the old saying goes, hold stocks in a bull market, take a break in a bear market, and don't be itchy in a volatile market. But we are all flesh and blood and have tempers, how can we be easily framed by a few old sayings? So, in a bull market, you want to run away when you make a little money, in a bear market, you are more unwilling to be trapped, and in a volatile market, you can't bear the itch.
The principle is simple, but it is difficult to do. It is indeed not easy to control yourself and go against your instincts. But we can learn to be smarter, improve our cognition, make good plans, manage our positions, and remind ourselves from time to time with reverse thinking. This may help you to walk more steadily on the road of cryptocurrency trading.
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