🟢What Is Trading Psychology?
👉Trading psychology refers to the psychological factors that influence how people trade in markets like crypto or stocks. It is based on the idea that emotions can significantly impact a trader's decision-making process.
For example, greed can drive a trader to make a high-risk decision, like buying a cryptocurrency at its peak due to its rapidly rising price. In contrast, fear can result in a trader prematurely exiting the market.
🔵FOMO is particularly prevalent when an asset has appreciated significantly in value over a relatively short period of time. This has the potential to cause a person to make market decisions based on emotion rather than logic and reason.
🔵Every trader is affected by emotion. For most people, losing money is painful, while earning money is joyful.
Next topic 🔵Why It’s Important To Understand Your Mindset When Trading
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