1. Pursuit of perfection
The pursuit of perfection is a greedy and even extreme mentality. Because of the pursuit of perfection, it is difficult to accept flaws, and it is difficult to bear even a very small stop loss. It is difficult to execute the stop loss, and when you make a profit, you want more profit. Trying to catch all fluctuations and not miss any market.
In fact, everyone has their own limitations and areas that they are not good at. It is this pursuit of perfection that easily leads to frequent and impulsive trading.
2. Get-rich-quick psychology
Normally, most people pursue a winning rate and a balanced position, and the winning rate can make a profit. However, some people go all out and try to make a fortune with a single order. If they bet all their chips on this one time, then you can't stop loss and leave the market. You must hold the order, and the consequences are known. The key to stable profit lies in the long term, not a single time.
3. Fight against the market
The market will not change because of personal will. Before entering the cryptocurrency circle, everyone has a spirit, that is, to overcome difficulties and fight against difficulties with a strong will. This excellent spirit may make you excellent and successful in your industry sector, and have a strong personality, but when the market is not favorable to you, you will not give in, and will still fight to the end until you are destroyed.
At this time, you may be defending your principle of not admitting defeat and not giving up, but you have forgotten the truth of the market. Therefore, trading is also a kind of practice. Only by learning to admit mistakes can you go further.
4. Worry about gains and losses
This is even more common. I have seen many cases of fan friends. Their views are bullish or bearish, but after entering the market, they stare at the market and watch the floating funds of their positions. They are swayed by various emotions, temptation, fear, greed, obsession, hope, etc. They are afraid of falling when they go long and afraid of rising when they go short. They are anxious and doubt themselves. They have lost their normal thinking and judgment as well as the ability to interpret the market.
It doesn't matter if you are bullish or bearish, or if you gain or lose, as long as you can make a small profit or a small loss within your tolerance range, and don't make a big loss. We should focus on the correctness of the process and take the result as it comes. Otherwise, what? Can you determine the result 100%? If you consider the result in advance, it will disrupt the entire trading process and you will lose money every time.
Because you are looking at the imaginary results from the perspective of the future, but ignoring the real situation at the moment. Are you itching to open an order, but then regret and feel afraid after opening an order? Do you regret and feel sorry again after closing a position? Over and over again, your principal shrinks and your confidence is insufficient.
5. Fear
You dare not hold the strategy for a long time, you have no confidence in the technology, and you have no confidence in your mentality, because you have lost money and left the market before, and you have the shadow of huge losses. It is difficult to focus on the market, and you can only focus on subjective ideas. You could have earned tens of thousands of dollars once, but you could only get hundreds of dollars. You missed the opportunity to make a lot of money. Next time you may open an order in a bad position, and you may suffer continuous losses and a series of adverse effects.
The solution I can provide is to operate with a light position and move the take-profit and stop-loss. You need to have a clear understanding of yourself, your current skills, experience, and mentality, and how much money you are suitable for. Don't be too naive.
6. Emotional imbalance
Every fluctuation in the market will be an emotional reaction of thousands of market participants. Fear, hatred, anger, jealousy, greed, pessimism, despair and other negative emotions will make you lack rationality and fail to accept reality. You will buy higher than others and sell lower than others. Learn to manage your emotions and learn to release them.
Your failure is nothing more than your carelessness before the accident, your panic after the accident, and your eagerness to make up for the loss after the loss occurred.
I suggest doing this: always respect the market, trade prudently, and face the market with a cautious attitude; don't be anxious when losses occur, stop, find the reasons, and make improvements; anxiety is the biggest reason for losses, heavy positions are anxiety, no signals are also anxiety, frequent trading is anxiety, and adding positions is also anxiety. It's just greed, and you want to make money quickly.
7. Herd mentality
If you don’t have enough quality, then don’t discuss the market with others too much. Personalities and methods are different, and the results are also different. For example, even if everyone is in the same position to go long, the exit point is different, do you understand? If your technology is not mature, you are easily influenced by others. If your technology is mature, you will not be disturbed.
8. Eager to make money
I have a deep understanding of the fact that small cycles can cause losses. I have members who can make 6000% profit in a large cycle, and I also have members who can make 20 times the profit in a month by playing with a small cycle. It seems that the profit of playing with a small cycle may be greater.
But it should be noted that small cycles have higher requirements on mentality, emotions, and technology, because the smaller the operation level, the faster the market changes, the harder it is to grasp, and the easier it is to substitute emotions. If your ability does not support you to play at a small level, then don't play, otherwise you will lose money back and forth, and the principal will be seriously worn out after several cycles, and you may even hold the order until you die. As for stop loss, we must stop loss when we should, but we cannot stop loss frequently.
The only thing in the world that can be obtained without work is poverty, the only thing that can be created out of nothing is dreams, nothing can be achieved without action, although the world is cruel, but as long as you are willing to walk, there will always be a way, I am always on the road, waiting for you to walk with me!!!
If you want to seize this bull market, it is definitely too late to learn and sell now.
It would be great if someone could get you started quickly.
I am Sister Hong, welcome to communicate