EFFECT FEAR AND GREED IN TRADING CRYPTOCURRENCY | BY @BLISSUJU - 10% payout to the community account
Greetings to us all here today. It is yet another day in this great community and today I will be talking about an interesting topic in crypto currency. As wonderful as the crypto currency is, many users are still captured in certain situations when trading or investing in crypto currency.
The crypto currency is volatile and that we know but most users are so confined in a particular situation which are so hard to come out from when one is trading.
Trading does not have anything to do with your emotional state because where ever the market want to go or whatever trend movement it want to take it will take regardless of traders emotional stability.
Emotions can affect a user trades so well. There are situation where we see traders login to the market to execute their trade and when the market eventually do not go in accordance to what they've placed initially then at that moment, most traders lose focus because of the sadness they feel inside on losing a particular funds.
For example, let us agree to the fact that a trader has over 200 TRX in his account and then the trader decided to trade part of the 200 TRX in futures trading, probably the trader must have noticed an uptrend in the market and then decided to launch a buy entry trade.
The trade may have taken that trend but because of the market makers and takers taking over the market and force it to take a sell trade movement, the trade then takes a sell market movement.
On seeing that market movement taking a different trend, the trader noticing that he is already losing more or probably has lost part of his TRX assets and could not take it any longer, the trader will then be overwhelmed with emotions and will want to get his assets back by executing a sell trade.
The trader now execute a sell trade and eventually the market may then take another trend movement there by returning to the previous trend which it was earlier, and if that happens we will now noticed that the trader will then be losing more funds than he has previously.
It is important that we take a look at the meaning of fear in trading cryptocurrency.
Fear can litterally be seen as uncontrollable emotional state that is caused by threat or danger. It is a strong emotional unrest which an individual experience due to danger, or being afraid of something, an event or a situation.
Fear is a terrible situation that should be eradicated when one is trading cryptocurrency. Fear endangers one to make silly and odd decisions when trading. It makes a user to lose focus as well as the bigger picture of what is ahead of him or her.
With fear, one can make a huge loss in the crypto trading market which may result to loss of all the assets in a wallet and that can cause emotional trauma to the trader.
It is foretold not to trade with fear, and the major reason why most traders trade crypto currency in that state of mind is because they are afraid to lose their assets and this is because one has not undergo crypto trading class.
Most new users who trade crypto currency are often captured in the particular state because of lack of adequate crypto trading training. So fear is a big disadvantage in trading crypto currency.
Greed on the other hand is quite the opposite of fear. Greed is the an event where selfish motives are revealed. Greed is an excessive desire towards attaining a particular thing.
Greed is an obsession to have more and it is a situation that is related with not being contented with what one has and it is a bad attitude that should be put to stop.
Greed has many many rich traders to fall a victim of losing their assets in the crypto trading market leaving them with nothing to continue with but regrets.
Many crypto traders always remain in the market to gain more just to add up to the money they have realized and then eventually lose everything in just a little time. That market was a market to have opted out in the first place but since greed has been brought into the market, a trader then loses money and assets.
These two factors should be eradicated from trading if at all we want to be on a safer side when trading in the crypto trading market. When we follow the rules and the necessary steps, our trading will go well. But if fear and greed are involved in our trading, then that trade is said to be lost.
This is the end of my article for today.
You have done a good research and this article is very impressive to read.
Thank you friend.
Fear and greed are two major things to consider when diving into the crypto market. Sometimes the market plays trick of your mind.
Yes my frieand and that is why we most not allow the to scenarios to take the best part of us.
With the increase in activity in the community, your voting percentage will increase. Thanks.
Thank you sir, I am doing my best.