1 Trading psychology secrets: Fear, greed, and discipline
Text: In the cryptocurrency market, investors are often driven by two emotions: fear and greed. Fear makes us rush to sell during market declines, missing rebounds; greed makes us chase prices at highs, ultimately getting trapped. Successful traders are not devoid of emotions but know how to harness them with discipline.
Case: Xiao Li is a newcomer in the cryptocurrency space. In May 2021, when BTC rose from 30,000 USDT to 40,000 USDT, he was afraid to buy, fearing that 'if he buys, it will drop.' When the price surged to 50,000 USDT, he couldn't resist FOMO (fear of missing out) and bought in fully, resulting in the market quickly retracing to 45,000 USDT, leaving Xiao Li stuck at the peak.
Summary: Successful traders rely on discipline to withstand emotional fluctuations, not on predicting the market. Learn to stay calm in frenzy and determined in panic.
1.2 How to set wealth goals suitable for the cryptocurrency space
Text: In the cryptocurrency space, wealth goals are not vague 'make big money,' but specific, measurable, and achievable plans. Clear goals can guide your trading direction.
Example:
Vague goal: "I want to get rich in the cryptocurrency space."
Clear goal: "In the next 12 months, through trend trading in BTC and ETH, I aim to increase 10,000 USDT to 15,000 USDT, with an annual return of 50%."
Action suggestion: Set a wealth goal for the next 12 months now, writing down specific numbers and strategies. This will become your starting point for trading.
1.3 Identifying thinking traps in trading
Text: The 'thinking traps' in trading often mislead individuals. Below are three common traps:
1. "Historical repetition" trap: believing that BTC halving must lead to a price surge while ignoring market changes.
2. "Listening to wind as rain" trap: blindly following big influencers' calls or trending topics on Twitter.
3. "Small wins make one complacent" trap: becoming overly confident after small victories and taking large positions that lead to losses.
Golden saying: "The market is always right; the wrong one is your own heart."
Summary and action
Summary: Emotions are the greatest enemy in trading; discipline is your shield. Try to record the psychological changes during your next trade and see how fear or greed affects you.
Action: In your trading journal, record the emotional state of each trade and analyze its impact on the results.
Phase Two: Decoding the market's code
Introduction:
"The cryptocurrency market seems mysterious, but there are patterns to follow. This chapter teaches you to understand the market's 'tricks' and avoid being deceived."
2.1 Core logic of the cryptocurrency market
Text: The cryptocurrency market is not a total mess; it has its own 'temperament': trends, volatility, and cycles.
Trend: The general direction of price, such as a bull market rising continuously, a bear market declining continuously.
Volatility: The up and down fluctuations of price, such as rising 10% today and falling 8% tomorrow, which is quite normal.
Cycle: The market's major ups and downs, such as Bitcoin (BTC) halving every four years, often brings a wave of significant market trends.
For example: In 2020, BTC rose from $10,000 to $60,000, which was a bull market trend; in May 2021, it suddenly dropped to $30,000, which was volatility; after halving every four years, BTC often experiences a significant surge, which is the cycle.
Common confusions faced by beginners:
"How to view trends?" Simple method: look at the 200-day moving average (a line on the candlestick chart). If the price is above it, it may be a bull market; if below, it may be a bear market.
"What to do about volatility?" Volatility is a daily occurrence in the cryptocurrency space; set stop-loss levels and don’t be scared away by small fluctuations.
"What does cycle mean?" For example, BTC halving means reduced supply, with unchanged demand, leading to potential price increases.
Action suggestion: Open the candlestick chart for BTC (you can use TradingView or Binance), look for the 200-day moving average, and see whether it is currently a bull or bear market.
Summary: The market has rules; focus on the big trend and don’t let small fluctuations disturb your mindset.
2.2 Trend analysis: How to capture the main upward wave of BTC and ETH
Text: The big trend is the 'main line' of the market; catching it can lead to significant profits. BTC and ETH are the 'big bosses' of the cryptocurrency space, and their main upward waves (periods of large rises) are great opportunities for beginners.
For example: From the end of 2020 to the beginning of 2021, BTC rose from $20,000 to $60,000, and ETH rose from a few hundred to $4,000, which is the main upward wave. Follow the trend to earn a fortune.
Common confusions faced by beginners:
"How to judge the main upward wave?" Look for new price highs + increased trading volume. For example, on the day BTC broke 60,000, the trading volume surged, indicating many people rushed to buy.
"Why not buy small coins?" Small coins (altcoins) are too volatile, making it easy for newcomers to incur losses. BTC and ETH are more stable; practice with them before moving to smaller ones.
Action suggestion: When BTC or ETH hits a new high next time, try buying a small amount (e.g., 100 yuan) to see how the trend develops.
Summary: Big trends are your friends; do not go against the market.
The current market in the cryptocurrency space is essentially a contest between retail investors and big players. If you lack solid professional skills, knowledge, and connections, you will only be cut down! If you want to collaborate in strategizing and reaping profits from big players, like-minded individuals in the cryptocurrency space are welcome to comment: 666 to discuss together.
#币安投票下币 #特朗普暂停新关税 #币安HODLer空投BABY $BTC $ETH
