Topic: Know When to Stop. Lesson for Everyone, Particularly Investors - page 7. (Read 990 times)

The level of psychology in trading or investing that will cause one to become more greedy.
Because greed is a trait that must exist in every human being.

Only the level is different, if he can control it then it will not be too disturbing.
But when greed takes over then it will be a disaster.

Take a look at the Fear and Greed chart below.
When the Bitcoin market is not good like now there will be more fear and greed that occurs.
This proves that many users cannot manage themselves so they are too afraid and too greedy in uncertain conditions.



Source: https://coinstats.app/fear-and-greed/

Trading is about setting up your target price and your cut loss price, you should avoid being too greedy especially if the price already hits your cut loss price and your target price. I’ve lose so many opportunities because of being too greedy while holding and this is the lesson that I will apply on the next bull market, I’ll stick to my target price and will enjoy my profit while many are still chasing the market which for me is not ok.

Whether it’s trading or investing, one should always learn to make a good analysis about the outcome of any decision, if it resort into creating consequences or not. And as long as money is directly involved, any trader or investor should always do the right thing. That is why patience and controlling of emotions are a must. If you fail to follow them, most likely you are trading or investing for a loss, because you do it obviously with greed and high emotions involved.

This is the importance of maintaining a level head in the volatile world of cryptocurrency investments. For me, this is a journey that spans for years, during which I must weather storms and savor sunny days. We should know when we need to hit the brakes and really need discipline in this chaotic world of trading. I was easily swayed by the crowd until I stayed true to my principles and long-term vision, which led me to make more sound financial decisions. Let's maintain patience, discipline, and a clear sense of purpose in our financial endeavors.

This is very helpful unfortunately, despite of having many insights here and many advices, many are still falling and many are still not following and that’s why they are failing with their investments simply because of being too greedy and not having a precise target or strategy. The market is very risky, learning when to stop is a must and that could be either for prevention or cut loss and for taking the profit, traders and investors should be more responsible because being greedy here can put you in a bigger risk.

So this is all about emotion and trading. It is well known that emotion must not influence our trading/investment decisions.  Traders/investors should maintain calm mind when they are to engage in their activities.  With calm minds come rationality.  With rationality, we can see how things are moving more precisely and proceed with our strategy accordingly.  It is also proven that trading with emotion often ends up with failure since we can't process our strategy correctly due to things bothering us.  So as a trader we need to pause for a while and calm ourselves down before proceeding, while investors must keep on their strategy and plans and do action only when their goal is met.

The points you mention are very helpful and effective but I think this strategy is necessary for the traders. Op both the trading and investment are slightly different from each other let me explain shortly to you. Trading is a process or a strategy that involves buying and selling but for the short term while investment is on the other hand long-term planning and the strategy you mentioned is best suitable for trading. In trading emotions are the biggest enemy which leads you to a loss for example your greedy nature and fears can involve you in the loss situation and to save from this one should clear and satisfy his mind about what he is buying and why. If he is imminent on the fear and greed he will be countable in the legend of traders.

Emotions become the worst enemy in trading even investing as well, the reason why if we can’t control or stop it, it’s much better not to trade or invest. Otherwise, we will certainly lost our focus why we need to trade or invest in the first place, and won’t stick to the original plan or purpose since emotions run the show. If we know that’s already happening, take a break and just come back again when you know already how to control or lessen the involvement of emotions.

And this is why you would really be needing to be versatile because this market could really be having that drastic change on which it would really be resulting on having those kind of possible alterations with your initial
plans or analysis which you had made out earlier and just because you've seen that the condition or situation have changed then it wont really be that bad that you would really be making up some changed as well.
It would really be an endless trial and error that we would really be doing into this market considering that movements are really that totally random then it would really be that hard that you would really really be just simply sticking on a single strategy or analysis.

Whether you are investing or making up some trading then there's always having that limitation or border line on how far you could really be able to take up such risks.There are people who are really that risk
takers and there are ones who are really that conservative when it comes to this and this is why we do see different outcomes and results basing up on how they do make out such decisions or choosing
up on the things on what really must done. Knowing to stop and keeps learning on things will really be that a never ending one as long you do welcome new ideas and things you have
encountered along the way then it should really be just that fine to make out adjustments.

In other words, traders must respect consistent strategies and plans. The key is always, good emotional control is the determining factor.
But, sometimes someone can get another plan while the original plan is in progress. The decision isn't without reason, we know the crypto market is always interesting because it can provide varied strategies.

That means you have to have good self-control so that you don't feel rushed in making decisions when you see market conditions.
Moreover, before you trade, you should analyze to find entry and exit points from the market so that you can exit on time and not be affected by what is happening in the market.
That's the point of learning more about trading because it can help you create more strategies to anticipate things that happen in the market so that you can adapt to situations and conditions.
But trading with investments is different because you must analyze the market conditions every time you trade to know when you can trade.
But for investment, you have to determine at what price you want to buy the coins, in this case, bitcoin.
And if you use the DCA method, it won't be too difficult because you just follow the time period so you can buy bitcoin.

Knowing when to stop is also like knowing yourself more. Greedy people often do not achieve success but failure and that is a lesson learned that we must know how to deal with our emotions and much more about controlling our greed. Well, for newbies it seems not easy to know about it but for experienced traders or investors, we probably know when to stop.

 - stop if we already exceed our limits
 - stop if we feel uncomfortable and out of the plan
 - stop if we never understand that market situation

As trader or investor you shouldn't allow emotions come between you and your thoughts on decisions to take with your trade or investment. Although op thread is more useful to traders than investors that are investing to hodl till the coin appreciate it requires no much skills all that's needed is being able to spot the right coin and invest while you wait for it to appreciate and also take advantage of every dip.

When a dip occurs in a market you don't expect an investor that is DCAing to pause seeing that an opportunity to buy has open for him. These market sentiments is strongly for traders not long term investors. As for emotions everyone in the crypto market must apprehend it in order to stay long in the market.

You are right. Trading like what the OP said is very helpful, because daily trading is about emotions and decision making as you said. Of course there will be a lot of pressure where your thoughts are about the profit you have to get. If emotions drag on too long then our trading will not be optimal or even lose.

Unlike investing as you say, every downturn is an opportunity to buy more. Because what we are aiming for is not profit today, but profit in the next few years and this makes emotions tend to be controlled.

However, you need to remember that all forms of investment have risks. So use the money you are willing to use, don't force yourself to use business capital, loan money and pension money.

Except for point, No. 1 I think with the rest of the pauses I can definitely agree with OP, Emotionless traders are really rare, trading makes you emotional less here just a caution, Analysis is important for a confidential decision at least the analysis provides some logical grounds about your position.

The trading game revolves around how efficient your decision-making power is and decision-making requires logical grounds, analysis of sentiments of the market, etc, In the volatile market your quick pickup of decisions helps you generate profit, always keep in mind that you are not alone this market understand the physiology of the opponent hehe.

In other words, think very well before making a decision. There is money involved, so it must be planned carefully. If you make a trading decision but don't have a plan, the probability that you want to happen is very low, especially if you are in a rush. Don't be afraid of not being able to keep up with the market trend if you see that you are late, there are many opportunities in the market so we don't focus our attention in just one thing. "Think before you click."

No, not really for traders. That's why I talked about the strategy that could be quite productive. This strategy is primarily employed when you've identified key levels where you anticipate the market may retrace. Let me use myself as an example. I placed a bid using the Dual Investment Strategy at 26k when the market was at 28k. While many were eagerly anticipating a rise to 30k, I had my reasons to believe that the market might retrace. I didn't bother constantly monitoring the charts during the days when everyone was fixated on the possibility of a 30k breakout. It wasn't until yesterday that I noticed numerous traders discussing a 22k target.

This situation, albeit somewhat amusing, inspired me to write this. I wanted to encourage others to have faith in their strategies or perhaps consider using this approach to alleviate the fear of missing out.

So, what you're getting at is, don't let your emotions run the show. We've got a strategy or game plan to stick to, and we can't allow our feelings to take the wheel. That's why we have these popular terms like FOMO and FUD - they're all about investors and traders making decisions based on their emotions.

If I see the price of bitcoin drop to $20000 today, I will rush and buy more bitcoin. Investing and trading are different, but you post is more for traders not investors.

Because you do not doubt to open a position and you open a position, that does not mean that you are a good trader. Have you see a market that has fallen before, the indicators confirmed strong buy, you buy and the market just start to fall and fall more. Trading is very risky and a new trader may not know unless he has started to trade.

If emotional starts to dominate, yes it is better to stop trading at that time.

Buying for investment or buying for trading is different. The first one will be more calm and the latter one will be more emotional.

If you are an investor and applying Dollar Cost Averaging, dips are great chances for you to accumulate bitcoin and surely good for DCA. This is not applied for altcoins because altcoins are shitcoins. They can be minted during a dead spiral like Terra $LUNA and must note, many altcoin tokens have a Mint function to do the same thing did by Do Kwon in May 2022.