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#BIOOpenonBinance The crypto market, especially when trading futures contracts, is always a severe psychological test. The panic mentality when the market is red or the pressure of holding losses are common states that many players fall into, leading to wrong decisions.

1. Panic Mentality When the Market is Red

When the market falls into a strong downtrend (red market), the general mentality of many people is:

• Fear of prices dropping further: This makes them rush to cut losses even though the order has not hit the stop-loss or technical breakdown point.

• Fear of losing capital: Many forget that placing a stop-loss is to protect capital in the long term, not to react to short-term fluctuations.

Result: After cutting losses, the market often rebounds quickly, and prices return to an uptrend. Those who exited early will feel regret, losing confidence in their trading plan.

2. Holding Loss Mentality - Coming Back to Break Even

Holding losses is a common mentality when the order is in the red but still hoping the market will turn around. Many people make two main mistakes:

• Not daring to cut losses in time: Instead of following the strategy, they hold the order too long, causing the losses to worsen.

• Cutting losses close to 'breaking even': When the account is just a few points away from 'breaking even', psychological pressure pushes them to cut losses, just to avoid the feeling of losing.

Result: Only 1-2 days after cutting losses, the market rises strongly, and if holding the order, profits can exceed expectations.

3. Analyzing Psychological Causes

The above psychological states stem from factors:

• Fear of losses: Losing money always puts a lot of pressure, making it hard for players to stay calm.

• Wrong expectations: Players often expect the market to move in their favor immediately, instead of waiting for the strategy to take effect.

• Lack of a clear plan: Trading based on emotions, without specific entry points, stop-loss, and take-profit.

4. Advice to Help Stabilize Mentality

To overcome these pressures, players need to change their perspective and manage their emotions:

• Setting a clear trading plan: Before entering an order, determine entry points, stop-loss, and take-profit. Adhere to the strategy, no matter how volatile the market is.

• Accepting risk: Investing is a game of probability. Accept that not every order wins, as long as you have a profit overall.

• Not trading in a panic mentality: When the market is down, instead of reacting hastily, look back at technical indicators and news to assess the trend.

• Reviewing trading history: Looking back at past wrong cut-losses to gain experience. Remember that the market always has recoveries.

5. Conclusion

Crypto futures are not only a battle of knowledge and skills but also a severe psychological test. Players need to focus on controlling emotions, adhering to discipline, and trusting their strategy. The market always has opportunities, but only those who remain calm and steadfast can seize them.