Let's listen to a short story about BBQ chicken.
Unlike the usual way of raising chickens, the Western United States is famous for BBQ-grilled free-range chicken. One fine day, a restaurant owner welcomed a familiar guest named Mr.Market
Guest: Boss, I want to eat BBQ chicken
Shop owner: OK, please wait for me 30 minutes. The innkeeper went to the garden and spread rice so that the chickens could slowly gather it. Finally, he chose the fattest chicken, grabbed it by the neck, cut off the blood and plucked the feathers clean. After a while, BBQ chicken began to be served to the guests.
Do you feel anything familiar?
Probably not, now we will go into reality with Newbie's story.
One fine day, a newbie was surfing Facebook and YouTube, seeing images of making money and dressing luxuriously that caught his eye. Newbie became curious, finished reading, then watched the video and clicked to join the Telegram groups. Here, the elegantly dressed admins started showing off their knowledge, showing off their money, and showing off how to get rich. Newbie is thinking that making money is so easy?
The truth is I used to think the same way.
At first, the newbie didn't believe it, but started to see more attractive images and real money-making videos continuously pushed out, making the newbie curious and starting to learn and gain knowledge. After that, the very familiar task that probably happens quite often to newbies is to open an account and deposit money to become a real Trader.
And you realize: How is this new trader different from the chickens? and How are teachers, YouTubers... different from shop owners? In the end, is it still Mr. Market who gets to enjoy the BBQ chicken?
So, what is newbie emotion?
Newbies or even myself after learning some basic knowledge and entering the market all have many similar psychological types: greed, FOMO, curiosity, overconfidence, panic. …
First is the greedy newbie: This type likes to look at other people's wallets, wanting to make money quickly, so when entering the market, they often go all-in, money is often deposited continuously. Of course, Mr.Market's rice spreading is successful as Newbie still wins many of the first bets. A short time later, it begins to lead to an overconfident psychological state.
When confidence increases, Newbie begins to self-analyze and predict, showing off to many people the achievements he has just achieved, and sometimes the storytelling tone is very similar to that of a veteran expert. Then when I saw the market continuously rising, more fomo psychology began to appear.
Newbie is excited and feels sorry for not adding more money, but it's okay, the market is so beautiful, newbie continues to deposit money and trade continuously. Out there, when group admins are shouting to buy more, newbies are more confident because their accounts are almost x5 x 10. And right at the right moment when you are extremely excited, suddenly the market adjusts, the newbie is quite calm, but the market still plummets, the Newbie starts to panic, worry and finally PANIC SELL…..
At this point, have you realized that the newbie is a chicken? The answer is: YES
You can learn a lot of knowledge, but ultimately emotions matter in money games. Think about it, the Money game has existed for hundreds of years, and knowledge is abundant on the internet and in books. But then 95% of players still lose money to the market. This also explains the misconception that just learning knowledge, learning analysis,... can make money in the Crypto market. Saying that doesn't mean there is no need to learn knowledge, for me knowledge is very necessary but not enough.
So how to escape chicken life?
Personally, I think it's: money and time.
The knowledge you learn before putting money into the market will make you feel very confident, but when you start depositing money, psychology and emotions are what govern all your actions. No one can help you control your emotions except yourself. Long-term experience in the market will help you realize that Money Game is a game of psychology and emotions. If you can't control your emotions, you lose everything.
Knowledge combined with experience will help you hone your psychology, see more clearly the overall picture of the market, you will learn how to control your dominant emotions, and be calmer every time the market adjusts. This is not only good for you when staying long in the market but also good for your daily life.
Epilogue
This article is based on my own perspective and experience. I hope that those who have gone before will have more multi-dimensional perspectives to share with the community, helping those new to the market lose money at least. maybe before earning it again.
