KryptNomad
Frequent Trader
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Core Reasons Why Trading Crypto is "Extremely Difficult"
2. Why is it difficult to "Buy/Sell what coin"?
* Bias & Herding Effect: We often tend to buy coins that are being heavily "pumped" on social media (Twitter, Telegram, TikTok) without actually researching the project's fundamentals, buying based on rumors, or following others' "tips." The decision of "what coin to buy" is not based on analysis but on emotions and the hope to "x10, x100 our accounts."
* Bias & Herding Effect: We often tend to buy coins that are being heavily "pumped" on social media (Twitter, Telegram, TikTok) without actually researching the project's fundamentals, buying based on rumors, or following others' "tips." The decision of "what coin to buy" is not based on analysis but on emotions and the hope to "x10, x100 our accounts."
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The Core Reason Why Crypto Trading is "Extremely Difficult"
The process in theory is very simple. But the difficulty lies not in knowing the steps, but in executing those steps correctly and with discipline.
The core and most fundamental reason is: TRADING PSYCHOLOGY.
Humans are not machines. Every buying/selling decision we make is heavily influenced by emotions, especially the two most primal emotions: Fear and Greed.
1. Why is "Identifying buy/sell zones" difficult?
* Greed: When the market is rising sharply (uptrend), we are afraid of missing out (FOMO - Fear Of Missing Out) and ignore signals that the price is too high (overbought zone) and still jump in. Most people don't "identify sell zones" and only have one thought: "It will keep going up".
* Fear: When the market falls sharply (downtrend), we become panicked. When we see our accounts evaporate and a sell-off is triggered, we sell at any price, usually right at a strong support zone (the bottom of the market). We don't "identify buy zones" and just want to get out of the market as quickly as possible.
My personal experience at the time was: Strategies, support tools, lessons learned, and prior plans were all ineffective (ignored).
Next post
2. Why is "What coin to buy/sell" difficult?
#TradingPsycology
The process in theory is very simple. But the difficulty lies not in knowing the steps, but in executing those steps correctly and with discipline.
The core and most fundamental reason is: TRADING PSYCHOLOGY.
Humans are not machines. Every buying/selling decision we make is heavily influenced by emotions, especially the two most primal emotions: Fear and Greed.
1. Why is "Identifying buy/sell zones" difficult?
* Greed: When the market is rising sharply (uptrend), we are afraid of missing out (FOMO - Fear Of Missing Out) and ignore signals that the price is too high (overbought zone) and still jump in. Most people don't "identify sell zones" and only have one thought: "It will keep going up".
* Fear: When the market falls sharply (downtrend), we become panicked. When we see our accounts evaporate and a sell-off is triggered, we sell at any price, usually right at a strong support zone (the bottom of the market). We don't "identify buy zones" and just want to get out of the market as quickly as possible.
My personal experience at the time was: Strategies, support tools, lessons learned, and prior plans were all ineffective (ignored).
Next post
2. Why is "What coin to buy/sell" difficult?
#TradingPsycology
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