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RE: Steemit Crypto Academy Contest / S18W3: Psychology and Market Cycle

in SteemitCryptoAcademy26 days ago

Your efforts to create such a comprehensive and quality post are commendable. Here are my reflections on some picks of your write up:

As the name implies buy red and sell green, all traders know one basic rule.

That's true, the "buy red, sell green" rule is very well-known. It means buying when prices are low (red) and selling when they are high (green). This basic rule helps traders make profits by taking advantage of price fluctuations.

Another influential reason why emotions are psychological thoughts take a better place in the decision-making of traders is because the greed ratio is very high.

I got that point. When traders are too greedy, they let their emotions take over. This often leads to bad decisions because they focus too much on potential gains and ignore risks. Controlling greed is very important in trading.

Sometimes it usually starts with the fear of missing out after hearing some amazing news about an accept, some set of traders will be so amazed by the news and jump in by investing in their set without making a concrete analysis of the asset.

Oh yeah, FOMO is a big issue for many traders. When they hear exciting news, they rush to invest without really understanding the asset. This can lead to poor decisions and losses because they didn't take the time to analyze the situation properly.

One thing you should know is that never try to regain your loss instead try to make a profit from your trade.

You are right, trying to regain losses can be dangerous. It's better to focus on making smart trades that can generate profits. Chasing losses often leads to more mistakes and even bigger losses. Staying calm and making good decisions is key.

Using technical skills, traders who are sure of their skills would automatically generate self-confidence in that trade.

That's true, having strong technical skills can really boost a trader's confidence. When traders understand the market and use their skills effectively, they feel more secure in their decisions. This confidence helps them stay calm and avoid emotional trading mistakes.

All the best

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