In the cryptocurrency world, many people will go through an abnormal behavior pattern: once they lose money, they stubbornly hold on, hoping 'it will come back', but once they make a little profit, they rush to take profits, fearing 'the profit will fly away'. This phenomenon seems rational, but it is actually the root cause of losses for most newcomers.
Why is this the case? Because we are human, and humans are inherently controlled by greed and fear.
Psychologists have long revealed a rule: the pain of 'loss' is felt much more intensely than the pleasure of 'gain'. In other words, the pain of losing 100 yuan is much stronger than the happiness of gaining 100 yuan. This psychological phenomenon is called 'loss aversion'.
Once 'loss aversion' is brought into trading, it becomes extremely deadly.
When you find yourself with unrealized losses in your account, you are often unwilling to close the position and admit your mistake, instead stubbornly holding on or even adding to the position, simply because you don't want to acknowledge that 'you have lost'. This irrational behavior of holding onto losing positions is seen by exchanges as 'sheep ready for slaughter'. When your account shows unrealized gains, you fall into another type of anxiety—worrying that the profit will disappear—so you hurry to close the position, securing the profit, even if the market has not yet fully moved.
Over the long term, you will find that **what you earn is always small change, but what you lose is an entire account.** This is not a technical issue; it is a problem of human nature, a 'psychological shackle' in your trading.
So what should you do? It's simple, yet difficult: establish a complete trading system and strictly adhere to it.
A mature trading system should at least include the following core elements: clear entry points, stop-loss and take-profit settings, position management logic, and risk control mechanisms. Once you enter the market, you must follow the system, not operate based on emotional fluctuations, and not break discipline due to 'fear of missing out' or 'reluctance to let go'.
A trading system is your armor against human nature. Only by operating within the rules can you break the deadlock of 'small gains and large losses'.
In the end, trading is not just a technical skill, but also a form of practice. Every penny you earn in the market is actually the result of overcoming emotions and conquering human nature. The more mature the trader, the more they understand the need to 'do less, do it slowly, and do it right', rather than 'doing frequently, impulsively, and taking a gamble'.
The sooner you establish your own trading system and learn to respect the market and discipline, the sooner you can achieve stable profits in the cryptocurrency world and go further.
If you are tired of the repeated torment of emotional trading and want to truly embark on the path to profitability, feel free to follow me, and I will help you reshape your trading mindset, moving from 'retail trader mentality' to that of a mature investor.
