To overcome more than 90% of irrational psychological fluctuations, you can become one of the 10% winners——
Most investors' emotional journey is like this:
When in a profitable state, people often think about taking profits, cashing out, and worry about losing the profits they have already gained.
When in a loss, they often feel very reluctant, and are therefore more willing to take greater risks in hopes of recovering the losses.
Our psychological response to losses is stronger than to gains, meaning that the pain of losing money far exceeds the joy of making money.
These common psychological tendencies among the general public are often the fundamental reasons for our investment failures——we cannot correctly face the gains and losses of investment.
In trading, most people's normal behavior is to hold on when wrong and to exit when winning. This behavior is exactly contrary to the core trading principle of holding when right and correcting when wrong. We need to have a correct understanding of the gains and losses of investment; only after overcoming our human weaknesses can we have a greater chance of conquering this market.
Earn money within the realm of understanding, make a good plan, hold patiently, and execute firmly, and you will overcome more than 90% of irrational psychological fluctuations.
So ask yourself three questions:
Are you currently in a loss or profit? What is your inner feeling? Can you formulate a better strategy for yourself?
As a seasoned cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the cryptocurrency world but don't know where to start? Click on my profile to see the introduction to my career, and let’s witness the moment of miracles together.