It is the psychology but more importantly it is the emotions that get the best of us. This happens in every facet of life and trading is no different. When we lose we want to get out to stop the pain and when we win we want to book our profits. You must get a better mental state if wanting to achieve big things at trading cryptos imo!
I agree. I think everybody somehow succumbs on their feelings in terms of how to do their trades. It's human nature to try to be idealistic and always choose trades feeling that it will always succeed. I think many people are afraid of losing, that they become extra critical and vigilant with making trades, over analyzing things that actually in up worse. Also, I think many traders just try to wing things instead of getting enough information and studying things to guide them on what trade they should be making. To some, it is even like gambling that when they lose, they want to go at it immediately to try to win back their loses, again, without actually studying why they lost in the first place. It's just plain carelessness sometimes.