Six typical trading mentalities, how many are you in?

1️⃣Not afraid of being trapped, just afraid of missing out!
The cryptocurrency players are quite magical, the pain of missing out is far greater than being trapped. Not afraid of being trapped, just afraid of missing out!
Often staring at the profit and loss figures of the account, the mood fluctuates with the fluctuation of the account figures...Accidentally missed the opportunity to enter the market, as if missing out on billions, reflecting and regretting why I cannot integrate knowledge and action?

Actually entered the market, due to different trading levels of each person, it is also possible to only make a little profit and be satisfied, not making the full profit of the entire trend when not placing an order. The difference in expectations will make you regret missing the trend, and the actual operation may only make a small profit.
Most brothers will not trade according to the methods of the God of Wealth, which leads to rushing into the market and getting stuck in the sky!

2️⃣ Not doing is right, doing is wrong?
Feel like being targeted by the main force?
If you don't buy value coins, why does the price go in the opposite direction as soon as you enter?
Fear of stop loss increases pressure after stop loss, even if you see an opportunity, you will hesitate and dare not enter the trade?

Illusion! Really continue trading, you may do it right, or you may do it wrong. However, without placing an order, subjectively, the "possibly wrong orders" will be ignored, and then one will lament the "market that was predicted correctly but not acted upon", feeling regretful. Over time, there will be a feeling of "the orders made always lose money, but dare not act on the correct market".

For those who have not yet established a clear trading logic, whether it is stocks or speculation, making a profit is not easy, and it can even be quite difficult. This means that for every trade placed, the probability of loss is significantly higher than the probability of profit. Being hesitant to trade is sometimes a good thing, rather than a bad thing. It often means avoiding risks rather than missing out on profits.

3️⃣Do not want to stop loss, wait a little longer?
Many people are unwilling to stop loss, mainly because there are a few barriers in the depths of the soul that cannot be crossed!
Lucky Close:

Maybe the position will be untangled after waiting a little longer, maybe miracles will happen, this is almost the biggest psychological obstacle to stop loss. Many people are unwilling to stop loss, or hesitate on the issue of stop loss, because of this mindset.

In fact, at this point, we should ask ourselves: if given another chance, would I still be willing to open a position at this price level? If not, then I should cut losses.
God of Wealth has said that stop-loss is a must! Not having it is no different from gambling with your eyes closed! It can only be said that the brothers who get liquidated have their own reasons!

Humiliation Gate:

What if the price moves in the desired direction after the stop loss? The vast majority of people who are unwilling to stop loss have this psychological problem. From the perspective of behavioral economics, this pain is far greater than the psychological comfort of making the same amount of money in other varieties. The pain of emptying is far greater than being trapped!

To reverse this psychological misconception, we should rethink: stop-loss is our responsibility for our past mistakes. Even if it gives us the desired price tomorrow, that's another issue. They are two different logics. After stop-loss, if we realize we were wrong, it will at most make us earn less. However, if we don't stop-loss, we may end up in a dead end, losing everything. There are many vivid examples.

Misunderstanding:

There are three typical misunderstandings: "Profit is constantly stopped out", "Stop loss means not buying, if buying then no need for stop loss", "Stop loss means lack of ability". These misunderstandings make people more likely to be lucky.

Actually, these three misunderstandings are not worth refuting. Just ask: Who has seen a stop-loss that can stop the profit completely? I have seen bankruptcies due to not stopping the loss, but I have never seen bankruptcies due to stopping the loss. I have seen people who do not know how to stop the loss, and in the end, they end up with nothing. I have never seen people who are good at stopping the loss and cannot make money in the end. If the risk issue is resolved, profits will come naturally. Stopping the loss is to solve the risk issue.

Indifferent:

Sometimes the reason for not stopping the loss is simply because the loss is not big enough. Small losses may seem insignificant, but many large losses stem from small ones. Many people do not stop the loss just because it started as a small loss and they disdain to stop loss. Later, it turns into a big loss, they panic, hold on and refuse to stop loss.

HODL:

I have lost so much already, what's the point of stop-loss? To put it bluntly, this is numbness, it's giving up. If this kind of person can look back at too many market trends, he will know how foolish he is. Once a trend ends, the direction will reverse. If you don't stop the loss, maybe there will be nothing left.

Loss aversion is a common human emotion. Selling coins with a loss is called Stop Loss by foreigners, and we call it cutting off the flesh and breaking the wrist - the aversion is evident in the words. Many people sell when they break even, but hold onto losses, deceiving themselves by saying that not selling does not count as a real loss. In fact, the investment value of the target has nothing to do with the buying cost; whether to sell or not has nothing to do with whether you are at a loss. The core obstacle to stop loss is the unwillingness to face one's own mistakes, hoping to cover up the mistakes that have already occurred with larger 'bets'. Stop loss goes against human nature, it will make you face your mistakes directly, and admit that the mistakes have occurred.

4️⃣ There is a position, take all the good news, ignore the bad news
When there is no position, be fair and objective. Once heavily invested in a certain coin, all positive news is accepted, while negative news is ignored. For example, if you have a long position and hear that the production of the underlying asset has decreased, you highly approve and feel great about yourself; if you hear that the import data shows increased supply, you think it's unimportant, this is a minor contradiction.

With a position, thinking becomes subjective, so it is called position thinking. In psychology, it is called Confirmation Bias, and colloquially known as "the butt decides the head." The correct decision-making process is to have evidence first, then draw conclusions; but most people draw conclusions first and then look for evidence, at which point they naturally ignore contrary evidence.

5️⃣ It's dropped by half, why not buy? It's risen so much, why not sell?
In the process of trading coins, there is a lot of prediction, and when people make predictions, their hearts are often filled with fear and anxiety about the uncertainty of things, so imagining a specific number can significantly reduce this anxiety and strengthen their beliefs. This thinking mechanism is called "anchoring".

The actual manifestation in trading may be: this coin has risen so much, why not sell? Or, it has already dropped by half, why not buy? The big rise is more expensive than the previous few days, can I still buy it? Should I wait for a pullback? Oh no, I'm trapped and can't sell, I have to wait to get out, and so on. These are all the result of anchoring psychology, attaching too much importance involuntarily to a specific value in decision-making.

Because the historical prices are usually provided for reference below, and the unknown is above, so to some extent, there will be more people who like to buy low than those who chase after the rise. It's not encouraging chasing after the rise, but saying that whether an asset is cheap or not, it's more reliable to look at the valuation than to look at the recent price fluctuations: when the fundamentals greatly exceed expectations, it can become cheaper as it rises, and conversely, it can become more expensive as it falls.

6️⃣ No fear of falling, just want to take profit as soon as it rises a little
Although everyone says they are afraid of losses, their actions do not reflect this. When there is a loss, they remain calm and composed, often experiencing it and getting used to it. When there is profit, oh, making money and breaking free, why wait any longer? They run faster than anyone else. On the surface, everyone is afraid of losses, but fundamentally, they are afraid of winning!

Developing a reasonable risk-reward ratio is the key to making money in the long run. Just like what is said in 'Stop-loss is set by yourself, profit is given by the market,' 'Focus on the stop-loss, as it is under your control; do not consider profit, because profit is given by the market!' Only by keeping the roots can the tree grow, do not cut it down as soon as it sprouts, and burn it for firewood! Profits accumulate from small to large, allowing your profits to expand fully. The most terrifying thing in trading is to not adhere to profits once gained, let your profits grow into a big tree. There is no need to focus on highs and lows in price, only on the ups and downs.