1. Pursuit of Perfection
The pursuit of perfection is a greedy and even extreme mentality. Because of this pursuit, it becomes difficult to accept flaws, and even small stop-losses cannot be tolerated, making execution difficult during stop-loss and wanting more profits during gains. The attempt to grasp every fluctuation and not miss any market movement is prevalent. In fact, everyone has their limitations and fields they are not good at; this pursuit of perfection easily leads to frequent and impulsive trading.
2. Get-Rich Quick Mentality
Generally, when most people pursue win rates and balanced positions, they can profit from a good win rate. However, some people bet everything on one single trade, trying to get rich quickly, putting all their chips on this one; thus, you cannot stop-loss and exit, and the outcome is known. The key to stable profits lies in the long term, not in a single instance.
3. Fighting Against the Market
The market will not change because of personal will. Before entering the crypto world, everyone possesses a spirit to overcome difficulties and fight with a strong will. This excellent spirit may make you very successful in your industry, but when the market is not favorable to you, you will not yield or back down, continuing to resist until you are completely destroyed. At this point, you may be defending your principle of not giving up, but you have forgotten the truth of the market. Therefore, trading is also a form of practice; learning to acknowledge mistakes allows you to go further.
4. Fear of Loss
This is even more common; I have seen many cases from fan friends. My own view is bullish or bearish, but after entering the market, I watch the market, see the fluctuation of my invested funds, and am swayed by various emotions: temptation, fear, greed, obsession, hope, etc. When going long, I fear a drop; when going short, I fear a rise; I feel restless and doubt myself, losing my normal thinking judgment and market interpretation ability. It doesn't matter whether I'm bullish or bearish; it doesn't matter about gains and losses, as long as small profits and small losses are within my tolerance, and I don't suffer major losses, that's fine. We should focus on the correctness of the process and let the results come naturally. Otherwise, can you decide the result 100%? Considering the result in advance will disrupt the entire trading process. Because you look at the imagined result from a future perspective, ignoring the real situation at present. Don't you feel itchy to open a position? Do you regret it after opening a position and feel scared? Do you regret and lament after closing a position? This back and forth leads to capital shrinkage and insufficient confidence.
5 Fear Psychology
Do not dare to hold strategies for the long term, lacking confidence in technicals and mindset, because you have suffered losses in the past and have shadows from significant losses. You can only center your thoughts around your subjective ideas, missing opportunities to earn significantly. Next time, you may open a position in a bad position, leading to a series of losses. The solution I can offer is to trade with light positions and use mobile stop-loss and take-profit; you need to have a clear understanding of your current technical experience and mindset, knowing how much you are capable of earning. Don’t be too naive about what you shouldn’t be thinking.
6. Emotional Imbalance
Every market fluctuation is a reaction of the emotions of countless participants. Negative emotions such as fear, hatred, anger, jealousy, greed, pessimism, and despair can make you lack rationality and refuse to accept reality. You will buy higher than others and sell lower than others. Learn to manage your emotions and learn to release and vent them. Your failure is merely due to being careless before an unexpected event, panicking after an unexpected event, and being eager to make up for losses after they occur. I suggest doing this: always respect the market and trade with a cautious attitude as if walking on thin ice; when losses occur, don’t rush, stop, find the cause, and improve; impatience is the biggest reason for losses, heavy positions are due to impatience, trading without signals is also impatience, frequent trading is impatience, increasing positions is impatience, which is greed, wanting to make money quickly.
7. Herd Mentality
If your personal qualities are not sufficient, then do not discuss market trends too much with others; personalities and methods differ, leading to different results. For example, even if everyone is uniformly bullish, the exit points will be different, do you understand? If your skills are immature, you are easily influenced; only when your skills mature can you avoid distractions.
8. Eager to Make Money
I have deep experience with small cycles being swept away. I have members who can achieve a 6000% return in larger cycles, and there are also members who can multiply their investments 20 times in a month in smaller cycles. It seems that the profits from small cycles might be greater. But it should be noted that small cycles demand higher mental state, emotions, and technical skills because the smaller the operation level, the faster the market changes, making it harder to grasp, and it is easier to get emotional. If your ability does not support you playing at a smaller level, then don’t play it; otherwise, back and forth will lead to significant capital loss, and you may even trade to your detriment. Regarding stop-loss, we must stop-loss when necessary, but we cannot frequently adjust stop-loss. The only thing in the world that can be obtained without effort is poverty; the only thing that can be created from nothing is dreams. No task can be accomplished without action. Although the world is cruel, as long as you are willing to walk, there will always be a path. I have always been on the road, waiting for all of you to join me! If you are still feeling confused and do not know how to start in this market, comment 333 to get on board!
