đ˘Why Itâs Important To Understand Your Mindset When Trading
đ˘Making unemotional decisions is, of course, easier said than done. Traders deal with a variety of challenges every day that can invoke an emotional response. Here are a few examples.
đľUnrealistic expectations: Trading is not a get-rich-quick scheme. People who go into trading with this idea are in for a rude awakening. Like any skill, trading requires years of practice and discipline.
đľLosing: Even the best traders have gloomy days. For new traders, losing trades is a tough concept to grasp and often leads to even more failed attempts to try and outwit the market.
Winning: While winning feels good, the downside is that traders may feel a sense of over-confidence or invincibility, and may be under the false perception that they canât lose. This can lead to riskier decisions and ultimately, losses.
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đľMarket sentiment and social media: Beginner traders are easily influenced by what people say on the Internet. Negative sentiment on social media can lead to fear, which can result in panic selling. Itâs equally unwise for a trader to blindly follow an influencerâs advice to buy a specific token, especially if the influencer is sponsored by the tokenâs project and paid to promote it.
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