Does Your Emotion Work Against You In Crypto Trading?
You love blockchain technology. You see the adoption of cryptocurrency. People who invested in crypto early make a fortune. And they change their financial situation. You want to get involved in crypto and make a positive change in your finances. But does your emotion work against you in crypto?
Trading is a good way to make money on crypto. So you start trading cryptocurrency. All you have to do is to buy low and sell high, so how hard could it be? You buy low thinking that's low. But after buying crypto, the price drops further. You get scared to see the loss.
When you hit the sell button to sell your crypto, the price starts going up. You feel terrible. You just lost money selling your crypto. You become desperate to make money in trading.
After taking any entry, you see the price goes up and you are happy to see that. You can exit your position to get a profit. But you wait to make more profit. Later, the price goes down. You see the potential profit decreasing. You feel bad and wait for the rise of the price. But the price falls further and you lose money selling crypto at a loss.
You just make a profitable trade turn into a loss. You decide that you will sell your crypto and book your profit. When you see the price rise, you hit the sell button and sell your crypto to book your profit. Now you feel good that you have a profit although that's small. But what happens after selling your crypto? The price keeps rising and you feel devastated.
You ask yourself why you sold your crypto early. You could make a lot of profit from that trade. You just missed a huge opportunity. Looks like whatever you do in crypto trading as a beginner, you end up in a terrible situation. You feel like someone is laughing at you on the other side. lol...
Does that happen to you when you are new to crypto trading? Your emotion plays a significant role in trading. If you cannot manage your emotions, you may eventually end up in the same place. We do different things in trading triggered by emotions.
If your emotion works against you, that may not help you to do better in trading. You need to set your trading strategy and follow a system that works for you. Before taking an entry, you decide what to do in which situation.
You set a stop loss, so if the price hits the stop loss, you are out. You also set your profit target, you know you will take profit when the price hits that level. When you do different things in trading driven by emotions, that can lead to making some crazy moves and you will laugh at yourself looking at what you just did.
You need to manage your emotions in trading. Do not let that work against you when you trade. 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.
People just follow hoax and then invest based on them to have loses in crypto trading and that what is happening for a lot of traders.