BTC pumped after the breakout of the descending triangle and the Ichimoku cloud. Currently, it is facing the horizontal resistance. We've to wait for a solid breakout of the horizontal resistance for the continuation bullish move.
Revenge trading refers to a psychological trap where traders try to quickly recover their losses, often leading to irrational trading decisions. Revenge trading can lead to a dangerous cycle of poor trading decisions, as traders start basing their trades on emotions rather than proper trading strategies.
How Does Revenge Trading Work?
Revenge trading typically occurs when a trader experiences a significant loss or a series of losses. Feeling the pressure to "make back" the lost funds, the trader deviates from their trading strategy, often increasing their position sizing or entering trades with higher risk profiles.
The trader's judgment is clouded by emotions, overriding the discipline and rules set in their trading plan. They may start ignoring fundamental risk management principles and market indicators, focusing solely on recovering their loss as quickly as possible. For instance, imagine that after a heavy loss caused by an unexpected market downturn, the trader doubles down on another risky position to recover the lost capital. The new position bets against the recent downturn. Despite market indicators suggesting further decline, the trader sticks with the new position without any reason other than to recover their previous losses.
Consequences of Revenge Trading
Revenge trading can negatively influence traders both financially and emotionally. Financially, revenge trading often leads to further losses. It can also result in higher trading costs if trading frequency increases.
Emotionally, revenge trading can lead to stress and anxiety. It can also lead to a feeling of frustration and failure, which might deter the trader from following a systematic trading approach in the future. Furthermore, persistent revenge trading can result in burnout, causing the trader to lose interest and potentially stop trading altogether.
๐นBitcoin is trying hard to maintain its position above $60k
๐นToday's market will be volatility due to the release of CPI data.
๐นIt's expected to come 3.4%, but if it above this, we might see a market fall.
๐นThe CPI data will play a crucial role in determining whether interest rates will be cut in the future or not. However, I don't believe it will exceed 3.4 today.
Ripple CEO Brad Garlinghouse Claims US ๐บ๐ธGovernment is Targeting Tether.
โThe US Government is going after Tether. That is clear to me. I view Tether as a very important part of the ecosystem and I donโt know how to predict the impact it would have on the rest of the ecosystem,โ Garlinghouse Said.