Do You Make Investment Decisions In Crypto Based On Emotions?

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Avatar for rezoanulvibes
1 year ago

You see what's going on, but sometimes it seems you cannot see the actual thing. You think the crypto market will move in a certain direction because everyone says so. Even though it moves in another direction, you cannot accept the fact. You hope the market will move in the direction that you imagine.

If you ask someone whether they make investment decisions in cryptocurrency based on emotions, the obvious answer is no. If you ask yourself the same question, you will take a pause. Be honest with yourself, you don't want to make any financial decisions based on emotions, but you just make investment decisions in crypto based on emotions.

Sometimes it is difficult to handle your emotions. Everyone is saying this particular crypto price will go much higher. You just don't want to miss this awesome gain, so you buy on high and expect the price will go higher. FOMO, aka, Fear of Missing Out makes you do things that you will not do in a normal situation.

It feels good seeing that you are right. On the other hand, when you see that you are wrong, it's hard to accept that. That's a wrong entry into the market. You can literary see that in the chart, still, you hope the crypto market will bounce back and start to move in your direction.

You can take a small loss and exit from the market if you can accept that you are wrong. Because of emotions, you find it hard to accept it. Now you are at a big loss.

FUD stands for Fear, Uncertainty, and Doubt. It can hold you back from executing your plan. You do your research and decide to take your entry to a certain level. But there is FUD in the market, and you get scared. You don't take an entry even though you wanted to do that before. Later, the crypto market starts going up and you miss the opportunity.

Due to FUD, you fail to hit the buy button and make a profit. You cannot avoid the psychological aspects of investment. When you follow your system and stop making investment decisions in crypto based on emotions, you see the positive change that will maximize your returns.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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Avatar for rezoanulvibes
1 year ago