Even with knowledge, beginners can make bad decisions under the pressure of emotion. Experts from Upbitc.com explained why this happens and how to stop making the same mistakes.
In addition to technical and fundamental analysis, the correct psychological attitude plays an important role in trading. Under the pressure of emotions, you can commit rash acts, which usually cause serious losses.
- Gambler’s Syndrome
For traders who are susceptible to gambler’s syndrome, the expert Upbitc.com recommends using the following decision-making technique: think not about why it is worth opening this position, but about why it is better not to open it.
- Premature exit from the deal
At the first successful transaction, newcomers to cryptocurrency trading tend to quickly fix their profits and close the position prematurely. In this case, they lose part of the profit that they could have gained. According to the director of the cryptocurrency exchange service Upbitc.com, traders who did not conduct a thorough analysis of the asset before the transaction find themselves in such situations.
- Dependence on other market participants
Studying someone else’s experience can help you with this. However, when you are in the market, follow only your rules and listen only to yourself.
- Accept losses
There will definitely be failed decisions, you need to force yourself to analyze them. No trader works without losses
- Euphoria from the first deal
The first profit brings positive emotions to the trader, which can only push him to break discipline. In the long term, this can lead to the fact that the money earned can be lost as a result of a failed transaction. To avoid falling into this trap, an expert in technical analysis and a leading specialist at Upbitc.com advises to withdraw some of the profits and spend it on something tangible.