(Thinking, Fast and Slow) the real insight for cryptocurrency traders is that there are two people living in our brains:
One is the impulsive poet who loves stories, who gets excited when the market goes up and cries when it goes down (System 1).
The other is the lazy, slow, cold-blooded accountant who only looks at numbers (System 2).
99% of liquidations in the cryptocurrency market are orders placed by poets. The remaining 1% are orders placed after the poet knocks out the accountant.
Kahneman tells us in 700 pages: you will never defeat the poet; the only thing you can do is wake the accountant before he takes action.
Here are the ten cruel insights that cryptocurrency traders should post on their screens:
Every time you feel 'very accurate', it's System 1 tricking you into paying fees.
The cryptocurrency you stubbornly hold onto until it reaches zero is not due to faith, but because loss aversion hurts twice as much as the joy of making money.
The Bitcoin you bought for 69,000 in 2021 still makes you think 'below 60,000 is undervalued', this is anchoring, not rationality.
After heavily investing in a certain cryptocurrency, you automatically block out all negative news; this is the endowment effect, not deep belief.
A bunch of posts about hundredfold cryptocurrencies on Twitter can accelerate your heartbeat; this is availability bias, not information.
When you firmly believe 'it will break even' at -80%, it’s because System 1 secretly replaced the question 'Can this cryptocurrency still rise?' with 'Can I accept that I've already lost so much?'.
Every time you make money after chasing highs and cutting losses, you think you've found the holy grail; this is outcome bias, not ability.
After making ten times your profit, you start using 100x leverage due to overconfidence, not evolution.
You endured two years of losses but cut your losses in the last wave because your memory self only remembers the most painful moment, not the numbness of two years.
Your so-called 'intuition' is 99% a story crafted by System 1 based on the last three posts you've seen.
The ones who truly survive in the cryptocurrency world are not necessarily smarter than others, but they trust themselves less.
Print out these ten sentences and paste them on the edge of your monitor. Every time you want to go all in, chase, or 'hold on a little longer',
first look up and ask yourself: Is the one placing the order a poet or an accountant?
If the answer is a poet, take your hand off the mouse and go make a cup of coffee. Come back when the accountant wakes up.
Because in the cryptocurrency world, surviving longer is more like a miracle than making more money.
#ThinkingFastAndSlow #TradingPsychology #CryptocurrencySurvivalRules #System1IsHarmingYou
