Trading against human nature 👃🏻, understand that you will be a great trader by grasping the human nature of trading; once you understand trading cryptocurrencies, you will excel! Margin trading strategy
Years of contracts lead to wisdom; those who can survive are certainly not relying on any indicators, news, or trends, but rather on human nature and trading games. Only by understanding these can you remain undefeated (suggest to like + bookmark to avoid losing it in the future).
Point 1 (Trading PS Human Nature)
It has been heard from many places that trading is against human nature. Most people sell when they make a profit, not being greedy, and hold on when they incur losses, not admitting it. Reverse this mindset, and you will become an expert. Think to yourself, if I make a profit, I will hold on; if I don’t earn 20%, I won’t sell. If I incur a loss, I will run, not being greedy, and run at a 1% loss. Strictly maintaining this mindset can last a lifetime.
Point 2 (Martingale Trading)
The so-called Martingale trading means: run when you make a profit, and average down when you incur a loss to lower the cost. Since most market trends are primarily oscillating, Martingale trading has a high risk-reward ratio. Martingale is the only trading strategy that aligns with human nature, which is why many people like to use it; however, it can lead to disaster in a one-sided market, often resulting in liquidation. Therefore, Martingale should definitely not be used. But you can reverse it: when you incur a loss, you run; when you make a profit, you keep increasing your position, and continuously adjust your stop-loss. Once you perfect this method, you will discover that this is the pyramid scaling method of trading mogul Jesse Livermore, who once turned the entire beautiful country upside down.
Point 3 (Loss Aversion and Gambler's Psychology)
Everyone understands gambler's psychology: when they lose, they want to recover; when they win, they want to continue. I believe most people can manage to not be greedy for profits in trading, easily content, but when they lose, they want to recover, and everyone is like this. This behavior in the industry is referred to as not being greedy for profits but being greedy for losses. Reverse this, and you are going against human nature; as long as you go against human nature in trading, you will soon become a big shot. Loss aversion occurs after a period of frequent profits, where one is unwilling to accept a drawdown. This situation also conforms to human nature, so if you do not go against it, you won't be able to earn a penny.
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