Trading Psychology and Crypto Emotions (Part 03)

In Continuation with the last part I want to share some traps am only used to change the training psychology of the investors and traders. Let’s talk about some common emotional traps that many crypto traders, especially beginners, fall into. It’s important to be aware of these so that you can avoid them:

FOMO (Fear of Missing Out):

This is a big one. You see a coin rising fast, and you feel the urge to jump in because you don’t want to miss out on potential profits. But often, by the time you enter, the price has already peaked, and you end up buying at a high, only to see the value drop soon after.

In Bangla, we might say, "Ekla durote giye, pore lagbe chokhe dholai!" (Running after something blindly might lead to regret). FOMO is a very common reason why many traders lose money.

source

Revenge Trading:

Sometimes, after a losing trade, you may feel the need to “get back” at the market by making another trade quickly. This is dangerous because it’s driven purely by emotions, and you’re not thinking clearly. Instead of cutting your losses, you end up losing even more.

Overconfidence:

After a successful trade, many traders start to believe they’ve figured it all out, and they take unnecessary risks. While confidence is important, overconfidence can lead to careless mistakes. The market has a way of humbling even the best traders. Confidence is good but overconfidence is always dangerous whether it is in trading or in real life. This is a very common trap for the emotional sentiment of the traders. There is no emotion in keeping it trading because it is all about analysis and risk.

So those who can maintain their emotional sentiment in this sector can grow beak because calculated risk can be considered otherwise everything is risky here which may lose most of the funds.

~ Regards,

VEIGO (Community Mod)