Well summarized

Reprinted: Daisy, Mars Finance

This article, based on common trading psychology, combines empirical data from traditional finance and the cryptocurrency industry to help avoid irrational decisions and restrain human weaknesses with strategies.

When market information surges explosively, and project parties continuously release news to encourage output and expand influence, we often find it difficult to discern truth from falsehood, and even harder to resist the invasion of FOMO (Fear of Missing Out). Media hype, whether it amplifies the myth of 'getting rich overnight' or the panic in the market, invisibly stimulates our nerves, making us repeatedly jump on the edge of trading. Those KOLs shrouded in halo, every time they promote or advertise, may become the last straw that breaks our rational defenses, pushing us into the abyss of emotional trading. These emotional trading behaviors ultimately lead to phenomena such as 'chasing highs and cutting losses', 'frequent trading', and 'over-speculation'.