The Ten Psychological Traps of Traders: Why Do You Always Lose Money?
After being in the crypto space for a long time, you'll discover a painful truth: most people lose money not because of a lack of skills, but because they lose to their own psychological demons. Today, let's dig into those psychological traps that shrink your account.
1. Anchoring Trap
"Bitcoin at 61,000 is too expensive"—the person saying this is most likely someone who bought in at 52,000. Remember, the market doesn't care about your cost price.
2. Curse of Novelty
Are the recently skyrocketing altcoins particularly tempting? Wake up, yesterday's gains have no relation to tomorrow's trends.
3. Fear of Cutting Losses
Is losing 100 USD ten times more painful than gaining 100 USD? This is why you can never hold onto profitable trades but stubbornly cling to losing ones.
4. Beauty in the Eyes of the Lover
Holding onto a certain coin feels like being in love; it seems like it can only go up. Stop deceiving yourself; cut losses when it's time to cut losses.
5. Herding Effect
Do you jump in when you see FOMO and sell when you hear panic? Remember, the ones lining up to jump off the exchange are all the 'smart' people.
6. Recency Effect
Is the shadow of your last liquidation still looming? The market has long moved on; only you are still living in the past candlesticks.
7. Survivor Bias
Is your screen filled with stories of getting rich? Remember, stories from the rooftop are never shared willingly.
8. Emotional Filter
When making money, you feel like Buffett; when losing money, you curse the market makers for being shameless. The market is still the same market; what's changed is your mindset.
9. Selective Blindness
Do you only see positive news? Be careful not to turn into the project's free cheerleader.
10. Hindsight Bias
"I knew it would go up"—how much is this statement worth? Next time, remember to turn "I knew" into "I have ordered."
The essence of trading is simple: overcoming yourself is more important than overcoming the market. Your trading record is your electrocardiogram; don't let emotions become your biggest slippage. Remember, in this market, lasting longer is more important than making quick profits.
Follow Yuanbao @crypto 元寶 for more information
