Analysis of Fear and Greed in Trading

In every aspect of trading, fear and greed are everywhere! It cannot be completely denied. There are advantages and disadvantages. How to discard and how to utilize such emotions is the correct approach.

Calmly reflecting on the emotional fluctuations during the trading process, we surprisingly find that when in floating profit, we feel fear! Afraid of losing it! When in floating loss, we feel calm, especially with trades we are confident in (note that this is merely our own belief in the correctness of the trade). However, when in floating loss, we may feel greed, leading us to add positions to lower costs! The fear and greed generated in the above two situations are harmful! It violates the trading profit logic of "cut losses and let profits run"!

But sometimes, when in floating profit, we feel greed, wanting to gain more! When in floating loss, we feel fear, worrying about losing more! The fear and greed generated in these two situations can be beneficial for trading profits as long as we grasp a certain degree! Because it aligns with the trading profit logic of "cut losses and let profits run"!

Everything has its pros and cons; the key is how to make good use of it! #加密ETF申请热潮涌现