In the end, you will find that the real opponent is not the market, but your own emotions. Many people think they are doing technical analysis, but in reality, they are being led by greed and fear from start to finish - the earlier the awakening, the fewer pitfalls.
You are not trading; you are being 'harvested' by emotions.
The essence of chasing highs: it's not about understanding the trend, it's about fearing to miss out.
When the market is rising, even though the candlestick chart has reached a resistance level, you focus on the news that 'everyone is making money', comforting yourself with 'just a little more and I'll exit'. The result is buying at a high position and panicking during the pullback, cutting losses at the floor, completely hijacked by 'missed opportunity anxiety'.The truth about cutting losses: it’s not a judgment error, it’s the fear of continued losses.
The price just dropped 2 candlesticks (which might just be a normal pullback), and you fixate on the unrealized loss number, your heart racing, with thoughts of 'if it drops again, I’ll be liquidated'. With a swift decision, you cut the position, only for the market to rebound - you didn’t lose to the trend, you lost to the imagination of 'expanded losses'.
Two emotions kill 90% of traders.
Greed: makes you stand guard at the peak.
Clearly, the strategy states 'take profit at 10% gain', but seeing the price still bouncing, greed suddenly emerges: 'Let’s wait a bit longer, maybe it can double'. As a result, not only does profit evaporate, but they also get caught at a high position - the essence of greed is using the fantasy of 'what if' to counter established rules.Fear: makes you cut losses at the bottom.
During a normal pullback, even though the stop-loss line hasn’t been reached, you’re fixated on every fluctuation of the minute chart, imagining a 'waterfall decline'. Ultimately, you surrender just before the support level, and right after cutting losses, a rebound occurs - the essence of fear is replacing rational judgment with the 'worst result'.
Those who truly make money understand 'zero emotions'.
Traders who can consistently profit in the crypto world are never the ones with technical skills; rather, they can switch their emotions to 'silent mode':
Before opening a position, they clearly write down 'entry reasons, profit points, stop-loss levels', operating like executing a program, not getting carried away when prices rise and not panicking when they fall;
When the market fluctuates, while others are anxiously watching the screen, they execute strategies - taking profits without being greedy and cutting losses without hesitation; trading becomes as natural as breathing.
The prerequisite for multiplying your investment: first learn to 'stabilize yourself'.
Many people always think about 'finding a master to lead them to wealth', but forget: there are no saviors in the crypto world; only 'emotionless execution' can lead you out of losses.
Rhythm is more important than price levels: knowing when to take small risks and when to wait with no positions, following the strategy without being disrupted by market fluctuations;
Strategies are more reliable than inspiration: moving average crossovers, increased volume, support and resistance levels... these clear signals are always more trustworthy than 'I feel it will rise';
Mindset lasts longer than luck: occasionally winning by chance isn’t hard, but keeping greed in check and enduring fear every time is difficult - once your mind is stable, your win rate naturally stands by your side.
Before multiplying your investment, do this one thing.
Throw away the mentality of 'taking a gamble'.
I have helped many people come out of losses, and they didn’t suddenly realize some technique, but finally learned:
Before opening a position, first ask yourself 'Is this an opportunity within the strategy, or an impulsive decision driven by emotions?'
While holding positions, replace the distracting thoughts of 'how much I’m making / losing' with 'has the take profit / stop loss signal been triggered?'
After closing a position, review 'Did I strictly follow the plan?', instead of getting tangled up in 'What if I had...'
Volatility in the crypto world is a norm; only those who can stabilize their mindset amidst volatility can reap the final rewards. Do you want to multiply your investment or recover losses? Start with 'trading without emotions' - strategy as a shield, mindset as a spear, is the way to survive in the crypto world.
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