Fear of stop loss +, fear of loss.
Usually the reason is that traders are afraid of failure and dare not accept losses. Such traders have strong self-esteem.
Early Closing:
If you close your positions on the same day, you will no longer be anxious. The reason for anxiety is that you are afraid that your positions will be reversed, and traders need to be comforted quickly.
3. Wishful thinking
Traders do not want to control the transaction, nor do they want to be responsible for the transaction. Traders are unable to accept the reality of losses and get angry, feel trapped by the market, and wishful thinking about a specific transaction. Being complacent when successful or requiring the market to prove that they are right will lead to losses.
5. Use money you can’t afford to lose or borrow to trade. Treat a trade as a last resort. Traders who want to succeed or are afraid of missing out will fall into this trap. Traders who don’t follow discipline and are greedy will fall into this trap. 6. Spread the cost downward
Traders do not admit that the trade is a loss and want to get their money back. Such traders have a strong self-esteem.
7. Impulsive Trading
Traders are easily excited, addicted, and like to gamble. This type of trader always trades based on intuition. When there is no trade, e.g.
On weekends, they get restless and obsessed with trading.
8. Feeling ecstatic after making a profit
Traders become complacent and think they can control the market
9. Account funds cannot increase in value - profits are very small. In this case, traders have no motivation to make money. This is usually due to psychological reasons such as lack of confidence.
10. Not following your trading system
Traders do not believe that their trading system is really useful, or they have not tested it seriously. Maybe this system does not suit your personality, maybe you need excitement when trading, or maybe you think you can't find a successful system.
11. Over-predicting trading outcomes
Traders are afraid of losing money and making mistakes, and end up being helpless.
Perfectionists are prone to problems. They want to determine the results. They don’t know that losses are also part of trading. They don’t know that the results are unknown. They don’t accept the risks of trading. They don’t accept unknown results.
12. Incorrect transaction volume
Traders dream that this trade will make money, thus ignoring the risks and the importance of money management. Maybe the trader does not want to take responsibility for the risk, or is too lazy to calculate the appropriate trading volume!
13. Overtrading
Traders want to conquer the market, probably because of greed, or because they want to take revenge on the market after losing money. This is very similar to impulsive trading, see
Seven o'clock!
14. Fear of Trading
Without a system, traders feel uneasy about risks and unknown outcomes. They are afraid of losing all their money and being laughed at. Perhaps traders need self-control and do not have confidence in the trading system or themselves.
15. Being impatient on non-trading days
Because of the influence of anger, fear and greed, traders' emotions fluctuate. Traders are overly concerned about the results of transactions and do not study the process and related techniques of transactions. Traders are too focused on money. Expectations are too high and unrealistic. 16. They want to trade all varieties regardless of varieties, and they want to follow any variety when a signal appears, fearing that they will miss any variety's signal. In the selection of varieties, there are two principles for trading:
The first principle is "Don't trade unfamiliar products and markets." That is, the technical trends of the market you participate in must be able to be included in his technical analysis framework.
The second principle is "don't trade in inactive markets" because the less liquid the market is, the easier it is for its price movement to be manipulated. To rashly participate in such a market is to walk into a trap. The best trading products are those with good liquidity, active trading patterns, and true and natural trends. 17. Being too obsessed with the pursuit of the right time to enter the market, and eager for the price to immediately break away from the cost and immediately have floating profits as soon as the position is entered. If you are temporarily trapped as soon as you enter the position, you will feel very uncomfortable and unbearable, and you will want to cut the short position and get out. The pursuit of perfect trading theory is not enough. If the trading technology accurately solves the problem of choosing the timing of entry and exit, self-management and self-management are completely useless.
Necessary.
This is like a swordsman with infinite martial arts skills who can kill all opponents. But in fact, there is no swordsman with infinite martial arts skills. No matter how powerful a person is, he will encounter opponents of equal strength. Similarly, no matter how great a trader is, his trading skills are also limited.
Limited and flexible.
Establish a scientific stop-loss framework (key survival rules)
Dynamic stop loss setting
Using the ATR (Average True Range) indicator, it is recommended that the daily stop loss be set at 1.5-3 times the ATR of the entry cost. Example: ETH is currently priced at $1.600, and the 20-day ATR is $80, so the stop loss line can be set at $1.440-$1.520. Position Management + Formula
Each investment should not exceed 5% of the total funds, and the single asset holding should not exceed 30%. According to the latest data from Coingecko, strict implementation of this rule can reduce the probability of liquidation by 72%.
Reverse thinking strategy for covering positions (strict risk control required)
When the price hits a key support level (such as the 38.2% Pyramid Retracement) and a bottom divergence pattern appears, the pyramid method can be used:
The first level bottom position: when the floating loss reaches 15%, 20% of the principal will be added to the position.
The second level of adding positions: 15% of the position will be added when the price rebounds to the cost price
Profit-taking discipline: When the profit reaches 30%, immediately halve the profit.
Note: This strategy is only suitable for investors with complete technical analysis capabilities
Grid trading + automated unwinding (suitable for long-term energy markets)
Design parameter combinations based on the Bitcoin halving cycle law:
Layout spacing: $50-5100 (adjusted according to the market value of the currency)
Payback target: Set 3%-5% grid profit for automatic selling.
Data verification: During the 2021 DeFi bull market, the average payback period for ETH grid traders was shortened to 28 days
4. Contract hedging + practical skills (high risk and high return)
Cross-period arbitrage portfolio
Hold spot and three-month delivery contracts at the same time, and reverse the operation when the basis widens to more than 15% annualized.
Insurance Strategy
The cost of buying out-of-the-money put options (strike price is 10% lower than the current price) is about 3%-5% of the principal.
Risk warning: When the leverage ratio of derivatives reaches 10 times, the probability of a single-day stop loss surges to 89%
5. Psychological Construction + and Cognitive Upgrading
Create a transaction log
Record the entry reasons, emotional state and result deviations of each transaction, and modify the decision-making model through behavioral economics:
Application of cycle rules
Combining the four-year halving cycle of Bitcoin and historical nodes such as the Mt.Gox compensation incident, a phased unwinding plan was formulated.
Conclusion: Building an Anti-Fragile Investment System
A single tree cannot make a boat, and a single sail cannot sail far! In Erquan, if you don’t have a good circle and first-hand information in Erquan, then I suggest you follow me and I will take you to the shore for free. You are welcome to join the team!!!
