CryptoPsy

Hi everybody!

Today I want to talk to you about a trading strategy that allows you to limit your losses. This strategy is called a stop loss.

It's used to set a loss amount without having to constantly monitor the price.

This strategy is linked to the sunk cost cognitive bias.

An example of this strategy is the following: Let's say we buy $100 worth of Ethereum, but we don't want to lose more than $10. So we set a stop loss of $90. If the price of Ethereum drops to that point, we sell and accept that loss, but we have the peace of mind that we didn't lose all our money and that we still have capital to continue trading and recover what we lost.

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Let's talk about FOMO (fear of missing out). This expression refers to the fear that others are having a rewarding experience and we're not participating in it.

This can apply to cryptocurrencies. We think we're missing the opportunity to buy a cryptocurrency at its lowest price, believing it will appreciate and be worth much more in the future.

Reality tells us that buying cryptocurrencies solely because of FOMO hasn't worked. You have to do your own research before buying.

Don't let FOMO lead you into a bad investment. And remember to use an amount of money you can afford to lose.

👇🏻Let me know in the comments if you've ever bought a token because of FOMO.

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#FOMO #bitcoin #Binance #vanar #Ethereum

Today I want to talk to you about the sunk cost fallacy 📉

This fallacy is a cognitive bias that leads us to hold onto a losing investment because of the time, effort, or money it cost us to get in.

Sometimes it's wise to use a stop-loss order. End that trade and accept the loss.

This will allow you to focus on other new projects or investments. ✨

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#tradingpsychology #bitcoin #Ethereum #solana #DOGE