Quote from: hyadumadha on October 13, 2018, 06:26:12 AM

In order to be a successful trader in the cryptocurrency market, traders should equip themselves by studying the existing methods of analysis, both fundamental and technical analysis. Learning and applying these methods will greatly help traders to predict the direction of movement of a token. Even so, there are still many traders in the global market who may already have good knowledge about analytical methods but still not easy to get profits in the cryptocurrency market. There are still many who are affected by news, rumors and fluctuations in the movement of the price of tokens or coins which are sometimes full of traps. As a result, they become distrustful of the analysis that they have built themselves or also they become impatient waiting for the momentum (either selling or buying) which is best to appear, if such is the loss that is unavoidable.

Traders good ability about fundamental and technical analysis will be in vain if the traders are not able to manage their psychological emotions as well. So this time let me write about some psychological mistake of traders that might be useful for you in this forum.

1. Being Stubborn To Keep Using the Loser Method
The loser method is a method that may be true but this method is not in suitable with the psychological character conditions that cause traders to experience losses. And strangely, many traders find it difficult to change their habits in trading, they are often trapped in the same and repetitive patterns of thinking. It could be because they do not know how to use the method especially because of laziness to read and add insight about trading.

2. Trade based on feeling
Still related to the first mistake, this second mistake was caused also by the unwillingness of traders to study analytical methods, especially technical analysis is the main cause of traders of the type like that to continue to trade only by using feeling. In fact, trading without using scientific analysis is the same as gambling.

3. Trading only because of the influence of friends.
Get used to receiving advice from friends, the losses that will be experienced not only financially but also the most detrimental is not getting the knowledge of how to make the right investment. This is experienced by many beginners who usually do not yet have a solid knowledge and understanding, therefore, this is typically used by scammers to make a profit. Only enough with sweet promises of the luxury that can be gained if they enter the investment and finally blop, loss all the asset. Incidentally, traders like this are still dominant in the cryptocurrency market, considering crypto itself is a new thing in this trading world.

4. Buying when prices move up (Buy High To Sell Higher)
When the Token price moves up, many traders think that the price will continue to moving up, even though there is a greater risk for the price to fall. Psychologically, this happens because there are excessive expectations from traders that prices will continue to rise, especially supported by a general theory known as "buy high sell higher". This theory is not entirely wrong, but it is good to be used by those who are experienced and have a good foundation of technical knowledge, not the other way around. The psychological tendency from the basic thinking of the traders is because of fear of being left behind by the "train". When the price of coins rises, traders like this think as if prices will continue to move up, not realizing that they are late to enter. This buy high sell higher theory can be used safely if it is supported by adequate knowledge of technical support and resistance theories. A simple understanding of this theory is that if the price of the token rises through the resistance level, then the token is still worth buying, and vice versa, if the price drops through the support level, immediately sell the token.

5. Mistakes in Predicting Trends
Mistakes in predicting trends include mistakes that traders do when they want to make long-term investments. One predicts the trend of movement of a commodity is also a fundamental mistake of individual investors in investing. Mistakes in predicting this trend are aimed more at investors' mistakes when they want to invest in the long term. This usually occurs because of the excessive reactive attitude of investors towards the movement / fluctuations in the price of tokens in the short term. Often when a token is moved quickly, both moved up and down in the short term, investors immediately draw the conclusion that the short-term movement will represent its long-term trend. In some cases, the consequences of this error do not infrequently cause traders to experience substantial losses because the token price drops drastically and continues to stagnate at a low value and in a relatively long period. Even if there is a change in trend, the price of the token only rises slightly and does not return to the position when it was purchased.

6. Selling Too Fast
Actions that can be said to be true in buying tokens are buying tokens that are fundamentally good when the token price is decreasing. But again because of a lack of understanding of fundamental and technical analysis, many traders who sell and sell are just a fear of losing, so when they have a little profit they rush to sell the token. The hasty conditions of selling these tokens usually occur in the type of short-term investor who is impatient to make a profit in a longer period of time.

7. Belief that Low-priced Token will provide greater profit margins.
The first reason why many traders do this is their fear of analyzing high-priced tokens because according to them the price is not affordable anymore, therefore they only play in tokens that are low in value. But what needs to be known, cheap tokens are not necessarily cheap. It could be that after being analyzed fundamentally it turned out that the token was already expensive. From this kind of thinking, traders will have a narrow perspective, losing momentum when large capitalized tokens are moving up.

8. Believe in the Rumors
There is a profound difference between Rumors and News. News is information that is officially issued by the relevant company or issuer. While the rumors essentially are information that is not clearly announced by whom, the truth of this information needs to be analyzed more deeply. One of the popular cases that the world will always remembers on how terrible the rumors are detrimental to a country was when Nathan de Rothschild immediately sold his shares in the British stock market in an attempt to spread rumors that Britain lost to France in the War of the Waterloo. But thanks to his agent who was able to provide information one day faster than the British government itself, Nathan made a scenario so that everyone in Britain was hit by panic and sold all of his shares at the time, and bought all the shares by Rothschild.

Well, thats all from me, maybe some of you can add the other mistakes or maybe correct my opinions abovementioned?

Some newbies in trading thought they could doubled their money easily, some think they can be favored by having luck but later lose.

Some panic, some fear and some are greedy. Emotion is very wrong in trading. Some, do not study about coin but just trade one because they like it.

Some trade crypto on weekends and some always overtrade and lose.

Some will put the amount they can not afford to lose, although, some could be luck but if the market is not in their favour could have detrimental effect on them.