A group of people are added to the cryptocurrency circle every year. After each bull market, a large number of leeks will flock into the market. We call these people bag holders and young leeks.
They are the bystanders who saw the birth of invisible rich people in the cryptocurrency circle. They felt that they had missed out on 100 million yuan, and finally joined in the anxiety and became part of the cryptocurrency speculators. They are middle-class white-collar workers who are breathless under the pressure of life and work. They are thirty years old and have achieved nothing. They look forward to the investment in virtual currency to get a car and a house to make a living.
They are unemployed young people far away in Africa. They learned about this path to wealth in the virtual currency investment class and hope to walk a different life path from their parents with their own "intelligence and wisdom". They are also ambitious young people who have no worries about food and clothing but are never satisfied. They always feel that they should not miss every opportunity of the "era" and create their own glory and honor.
These young people, caught up in the anxiety of the times, missed out on real estate and the Internet, and regarded virtual currency as the next big trend of the era. For many people, investing in virtual currency may be the only chance to achieve financial freedom in this life, and they cannot afford to lose it. These people saw hope in virtual currency and gave virtual currency new hope.
To be successful, we need to know as much as possible about the markets, but it is equally important that we as traders understand ourselves and how to navigate the heat of the trade.
Due to the huge returns and risks in the market, in the instantaneous changes in prices, emotions such as success, failure, joy, frustration, reason, greed, calmness, fear, etc. flash alternately in every investor.
Therefore, human nature and psychology play an important role in the market. This is the "trading psychology" that has been increasingly valued by the market in recent years. If your trading method tells you that you should make a trade, but you do not execute it, you miss an opportunity to make money and can only watch from the sidelines. This pain is far greater than the pain of entering the market and making a trade according to your own trading plan but losing money in the end.
Arrogance and the pride that comes from making money can lead to bankruptcy. Making money can make people emotionally agitated, which can cause their view of reality to become distorted. The more money you make, the better you feel about yourself, and the more likely you are to be controlled by your arrogance. The thrill of making money is what gamblers want. Gamblers are willing to lose money over and over again just for the thrill of making money.
Successful traders quantify and analyze risk, truly understand and accept it. Accepting risk emotionally and psychologically determines your mindset in every trade. Individual risk tolerance and trading time preferences also make each trader different. Choose a trading method that reflects your trading preferences and risk tolerance. The further away hope, greed and fear are, the greater the chance of a successful trade.
Why are there hundreds of people who can analyze technical charts very well, but there are very few truly good traders? The reason is that they need to spend more time on their own psychology rather than on analytical methods. Most traders are not as patient as the market and buy and sell signals.
There is an old adage that the market will do everything it can to drive most traders crazy. As long as someone goes against the trend, the market trend will continue. The market is a collection of the psychological set of all trading participants. The daily battle between bulls and bears reflects what the bulls and bears are thinking every day. Be sure to pay attention to the daily buy and sell signals and the relationship between the previous and the next, because this reflects the market's recent intentions!