Market Cycle Psychology: The cryptocurrency market follows market cycles, experiencing phases of rise, fall, and rise in prices again. The psychology of market cycles includes the emotions and attitudes of market participants and explains how they affect overall market trends.
• Emotional Changes: During market cycles, investors go through emotional changes from hope, optimism, and belief to excitement, euphoria, then to complacency, anxiety, denial, and finally to surrender, anger, and depression.
• Zen Trading: In the crypto space, investors need to maintain a calm mindset and not be influenced by price fluctuations. One should not be overly excited during surges and not devastated during drops, maintaining calmness and objectivity.
• Controlling Mindset: The most important thing when entering the crypto space is to control one's mindset, followed by technical analysis, fundamentals, news, etc. If the mindset breaks, it is destined to not make money, and it will significantly affect both life and mental health.
• Impact of Investor Emotion: Optimistic market sentiment can attract more buyers, driving up prices, while pessimistic sentiment may lead to increased selling pressure, thereby lowering prices. Investors need to be wary of overly emotional decision-making.
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