① Dogmatism ② Empiricism ③ Opportunism

Three poisonous thoughts that keep you trapped

In digital currency trading, in order to achieve the desired results, the subjective thinking of investors must be consistent with the objective laws of the market. Deviating from this principle will lead to failure in trading. The key to success is to avoid three harmful ways of thinking, because they will hinder the achievement of goals, and many people are unaware of this.

The first type: dogmatic thinking

This kind of thinking relies too much on theory and ignores practice. In digital currency trading, some investors may be overly superstitious about technical analysis or market theory, and frequently discuss various indicators and strategies. Indicators are the results of statistics after the data comes out.

Under the same icon form, the premise for the same result is: the general environment is the same, all participants in the current transaction and the previous transaction have the same funds and the matching method is the same. This is impossible.

This kind of harm is often greater. The strategic knowledge in the books is to select special cases that meet the indicators. If you use the correct books to scare people, how do you refute it?

However, in actual operations, they suffer losses due to lack of sensitivity to market dynamics. Dogmatism makes traders unable to adapt flexibly, leading to wrong decisions.

Second: empiricism

This kind of thinking emphasizes past experience and ignores theory, which is common in the case of "path dependence". The digital currency market fluctuates violently, and investors may blindly believe that a certain trading strategy will be effective in the future because they have made money from the success of a certain trading strategy in the past and the recommendation of a big shot.

For example, some people use high-leverage trading to gain short-term gains, but fail to understand the root causes of market fluctuations and eventually run into trouble due to market changes. This empiricism makes it impossible for investors to adapt to the new market environment.

The third type: opportunistic thinking

Opportunism has no clear principles and is based on feelings and short-term interests. It has two tendencies:

- Right-leaning: Conservative attitude leads to missed opportunities. When faced with drastic market fluctuations and plunges, such as 9.4, 312, 519, people lose confidence and sell at a loss, resulting in failure to seize the opportunity to buy low in time. After a surge, they chase high and get trapped, and sell at a loss again.

- Left-leaning: Aggressive investment decisions and excessive risk-taking. For example, forced positions when the market is not stable, high leverage and bottom-fishing when the market plummets, etc., resulting in significant losses.

The dangers of subjectivism

These three harmful thinkings - dogmatism, empiricism and opportunism, are collectively called subjectivism. They make traders run into obstacles repeatedly in actual operations and fail to achieve ideal returns.

Realistic thinking

The opposite of subjectivism is the attitude of seeking truth from facts. Seeking truth from facts emphasizes the combination of theory and practice. Successful digital currency trading requires theory to guide practice, while practice can also verify and develop theory. Only in this way can we succeed in the rapidly changing market.

in conclusion

In digital currency trading, it is important to attach importance to the combination of theory and practice and avoid falling into the trap of dogmatism, empiricism and opportunism. Only by constantly learning and adapting to market changes can traders give full play to the special initiative of human beings and achieve long-term investment goals.

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