BCH Course: Trading Psychology

Recently, the market experienced a very disappointing price drop. Buyer or Seller suffers a loss. Another incident that caused trouble was Luna and the rest of the team instilling trauma in novice crypto traders.

 For beginners in the crypto market. We have to understand the concept that the market will not give success in a short time. There is always a stage where you have to manage the emotions of a loss. However, you can't be afraid. you can't stop. All you have to do is manage the fear of losing in trading.

 For us to know, successful traders who are well known do not always make a profit. But everyone has the ability to learn from every mistake. Trauma is an enemy that must be faced. Don't run from problems.

 To Understand This Content:

1. How You Recognize Your Fear

2. Recognizing fear

3. Fear of being wrong

4. Fear of Losing

How You Recognize Your Fear

 Traders with long experience and novice traders (or little experience in the market), they have a fear of trading. Every trader has a different fear. All markets, including crypto, can traumatize you with fear.

 Beginners in trading imagine how we get rich in a short time. We see people investing in crypto. Then, we see them get rich. So, we tell ourselves that trading is easy. It is the initial cause for the emergence of fear.

 When the reality in the market is different from what we expect. We are disappointed. Although beginners in trading have already learned. It's not that easy to get rich. There is no fast way to make you rich in crypto. All work requires a process and every process requires patience and a positive mind.

Fear arises from not understanding

 For novice traders, there will be an initial challenge, namely how beginners choose crypto to buy, store and sell. Or how novice traders choose candidates for cryptocurrencies to trade.

 Usually, novice traders will be confused and doubtful. Do novice traders buy crypto when the color is red or green. When is the right time to buy crypto. When is the right time to sell crypto. It often happens, novice traders to limit the Cut Loss.

 Fear comes and attacks novice traders. When the numbers change. When the graphics change. Uncertain value. Positive values ​​in seconds can turn into negative values. Moreover, the time to sell did not come even though it had been a day of waiting in the crypto market.

 If this fear occurs because the trader does not understand crypto and the market. This condition makes the trader is doing what we call "gambling" aka "gambling".

 How come? You must know that if you make a transaction without a clear strategy and do not have a detailed reason. The action is the same as using the science of guessing. You feel there is an opportunity but what happens is a loss.

 Then what is the solution to the fear of ignorance? Therefore, before starting to trade in the market, you should first study the opportunities and risks. Determine the profit target and cut loss limit.

The Danger of Feeling Always Right

 As human beings in general, we feel satisfied and confident when it's true. And feel disappointed and even feel punished if wrong. It is very natural, we in various ways, be the right side and avoid mistakes.

 There is a formula that is quite famous in the market. There are times when our analysis is correct and the movement of crypto in the market is as expected. However, there are other situations where we feel our analysis is correct but the market is not working according to the analysis.

 That's the reason why we shouldn't stick with personal analysis. Never feel that everything you think is the absolute truth. There is no eternal truth to an analysis.

 Beginner traders who feel they are always right will stick with personal analysis. If novice traders get something value according to the analysis. The next thing that arises is the ego that makes too sure. This feeling causes a novice trader to focus on profit and risk.

 When novice traders forget about the crypto market or forget to set a cut loss. When the market is not in good shape, losses leave novice traders with pain in their hearts and minds. Feelings that feel right are frustrating.

 Never endure a loss for a long time. There is no guarantee that the price in crypto will live up to your expectations. When you have no hope anymore. You're just frustrated and feeling guilty until you're traumatized.

Fear of Loss

 Usually, sad feelings last longer than when you feel happy. Like love, you will be sadder because your love story is broken than when you are happy because you are happy. The same is true of the crypto market.

 Novice traders will feel old sadness and fear when losing in the market. On the other hand, the feeling of happiness when profit lasts only for a short time. You just close your eyes and feel happy when the profit will be gone. However, it takes you a few days to experience grief when you experience a loss.

 Fear of losing is a reason that creates doubts for novice traders. When is the time to enter the market? Although novice traders have the right analysis and the right time for transactions. But the fear of potential losses makes novice traders just watch the market without doing anything.

 We must know that any market has risks. Most old traders say that the crypto market is the most risky market of all the existing markets.

Conclusion Facing Fear

 Feeling afraid is very human. Everyone has fear. Even when soldiers who have been trained so cruelly will feel fear when tortured or when facing death. So, everyone has their own fear.

 To face the fear of not understanding. Of course, the first answer is that you have to learn more about the potential crypto that will be the target of the transaction. You should have time to study and read more expert analysis on the crypto market.

 If you are traumatized by mistakes that arise after you persist with personal truth. You have to deal with this trauma by eliminating personal assumptions. You can choose to form a small circle in studying crypto and the market.

 Finally, the novice trader's way to get rid of the fear of losing is to use small amounts of money when entering a trade. You will not be stressed if the analysis or market value does not match your expectations. Make a strategy by determining the risk limit that is smaller than the profit that can be generated.