From not being able to hold onto profits to daring to set stop-losses, I've cured my trading psychological issues in 3 years: 90% of losses in the crypto world fall into these 17 psychological traps.

I’ve seen a fan go from a 30% profit in Bitcoin to a 50% loss, just because they thought 'if I wait a bit longer, it will come back'; I've also seen someone who bought coins and then stared at the screen until dawn, panicking and selling at a 1% drop. These losses are not technical issues; they stem from psychological problems.

Today, I will break down the 17 deadliest trading psychological traps and provide you with a 'psychological first-aid plan'. If you can avoid half of them, you will save yourself a lot of money.

Let's talk about those psychological traps that drag people into the abyss; see how many you've fallen into.

The most common is 'trading operations kidnapped by fear'. Some people clearly set a stop-loss level, but when it reaches that point, they hesitate to cut their losses, always feeling 'the market is targeting me'.

Last year, a student held onto Ethereum when it dropped to a 15% loss and stubbornly held on for two months, ending up with only a fraction of their capital when they finally faced liquidation. Even worse is the 'premature liquidation anxiety', where they rush to take profits at a 5% gain, fearing a pullback will wipe out their profits, only to miss out on a subsequent 30% rise. This isn't caution; it's fear robbing them of their judgment.

Some people always treat trading as a 'life gamble'. Those who cash out using credit cards to buy coins or borrow high-interest loans to average down, I've seen one lose after another. They always think 'this time I can break even', but forget that the risks in the crypto world are unreasonable. With 10x leverage, a single crash can take away all chances of recovery.

Even more foolish is 'averaging down on losses', buying more when it drops 10%, buying again at 20%, and ultimately pouring all their money into the same pit. This isn’t averaging up; it’s sending reinforcements to the losses.

'Greed and arrogance' are even more invisible killers. Some people, after making three consecutive profits, feel like 'they are the chosen ones', rushing to chase various altcoins, only to lose all their previous profits.

Perfectionists can easily trip up, always thinking 'buy at the lowest, sell at the highest', and not entering even with a 1% difference, eventually watching opportunities slip away. Some want to trade every coin, entering Bitcoin, altcoins, and even scam coins, seemingly seizing opportunities, but actually turning themselves into easy targets for the market to harvest.

These psychological issues cannot be cured just by saying 'maintain a calm mind'; hard-core methods must be employed to hedge against them.

First, let's build a 'dynamic stop-loss protection net'. I currently use the ATR indicator (Average True Range) to set my stop-loss. For example, if the current price of Ethereum is $1600 and the 20-day ATR is $80, I would set the stop-loss line between $1440 and $1520—this is more flexible than a fixed 10% stop-loss, allowing enough space for market fluctuations. Remember, a stop-loss is not giving up; it's leaving a lifeline for the next trade.

Position management should be like 'equipping a lifeboat for a ship'. Don’t let any single trade exceed 5% of your total funds, and for the same coin, don’t exceed 30%. I’ve seen the most stable veteran players allocate 60% to mainstream coins, and distribute the rest among 3-4 potential coins. Even if one drops 50%, the total account only loses about 3%. Don’t cut corners when calculating positions; use a calculator to get it right. Skipping this step could cost you multiple times your money later.

To deal with inner demons, we need to rely on the 'trading journal remedy'. I spend 10 minutes every day recording: Why did I buy this coin? Was I influenced by news in the group? Did my emotions get skewed when I made a profit or loss? Looking back three months later, you'll find that you keep making the same mistakes, such as impulsively buying just because 'a group member showcased profits'. This is a psychological loophole that needs to be addressed.

If you're stuck in a position, try the 'reverse averaging down method', but strictly follow the rules. For example, if Bitcoin falls to the Fibonacci 38.2% support level and the RSI shows a bullish divergence, when you're at a 15% unrealized loss, average down by 20% of your position. When it rebounds to your cost price, average down another 15%, and when you're at a 30% profit, sell half. Last year, I helped a fan get out of a stuck position using this method; what was originally a six-month breakeven period was shortened to 45 days.

In the end, I want to say that trading is not about making money from technical skills; it’s about mindset. If you dare to set a stop-loss, you are calmer than 80% of people; if you can control your position size, you are safer than 90% of people.