Topic: Reversal Psychology ! - page 3. (Read 654 times)

Going opposite of your initial plan would be happening because of anything like emotional failures or market condition but at long as you are making profit, that is not a problem in the case of market conditions but if you're reversing just because of emotions that may not help all the times which the real problem here.

Always sticking with trading plans will be helping to achieving consistent results from trading. Switching over plans/targets may end up regrets at most of the times.

The right psychology should be understood by everyone because once you have experienced the negative things that could impact your trading and mindset, it will roll you down continuously and you might not be able to recover it. I think what you should do is to read and establish what you believe would work and just stick with it in the long run, no matter what happens. Making sure that you will adapt to some situations but not varying largely with your chosen strategy and the adaptation.

One thing that I considered while reading your title and scanning your post is that why not use the reverse trick that some people use? Like what if you decided to long an asset but reverse it and do everything oppositely. Because you it's like gambling as well that there's a chance that you can win or not.

It's the development of the mind to be strong or create something that could possibly work. Better be prepared.

The reversal that happens in chart patterns especially one has lost money affects one psychologically especially if this happens several times. Just like OP said, at some point, I actually thought the market was against me. The market movement reverse after it had only hit my stop-loss. 
I, however, learnt that the market isn't against anybody. I didn't know enough on how to read the markets and so I kept making those losses. What I did was take a break from trading for a few weeks, learn more and I got better at trading. When I eventually resumed trading, I realised my losses are now minimal even though I still make them once in a while.

indeed psychology is the most important thing in trading, psychology seems to be the main character. There are many conditions that play with psychology in trading, for example when we have made a profit and do not immediately cut profit, even though we have reached the target we want. this we hope the price will continue to rally continually. things like that happen a lot, where greed haunts us

Testing your ability on emotion control is the key role of trading . Some traders gets break down on greedy side and others are on panic way. Yeah, on either direction if you hold your nerves then there are chances for overcoming all the obstacles of trading and to hit success.

Yeah without these, you cannot remain calm if you are having a open trade. Either choose very long term based trading/holding to remain not worrying about anything or else just quit crypto trading; no other go.

anyone who will trade and make profit must be patient enough. emotions will not allow you to attain your goals because it will conflict your thought especially when your holdings are on dip. but deep understanding will make you overcome this. market cycle is full of ups and downs. if you are for long then you dont have to mind every retracement or dip. this is the only way to have long term benefit.

You could avoid emotional bursts but for that they need to be more conscious about sticking with technical and fundamental things. Only when people are not sure about what is going to happen next and when taking their decision randomly; these lead you falling into emotional failures because of uncertain future. Technical and fundamental analysis will help you to remain certain about what is going to happen next.

It means it will not get you assured profits but you can be sure about only this is going to happen; if not then this will happen hence there will be less chances for your emotions to be playing against you.

Our emotions always let us fail when we see a bad results after buying, this is a common problem actually because of being so volatile of crypto currency. And i believe 80% of traders can't hold back their emotions even though most of them have enough knowledge when it comes to it.. Who's to blame? perhaps that's part of our life.. Wherein making "mistakes".  So all i can say is despite if we cannot avoid doing the same mistake then it's up to us if we will learn some lessons from it.

Well in the first place, trading (or any type/form of earning money) is a method for you to actually make your personal life better. So selling it for a way to actually enter trading (not even a guaranteed method to earn money at that) is wrong in the first place. A basic guarantee to earning money is that it takes time, though that's still a 50/50 chance, but compared to earning a quick buck which probably has a 1% chance of actually working most of the time, heck I'd take the one that would guarantee it for me. I mean, if you won the gamble good for you, but if you lost it? Well you're gonna lose everything.

Of a truth, a lot of us go through this or have gone through this in the past especially those of us that are just within the early stages of our trading and have been advised to buy coins despite its position in the market as, the expected low doesn't seem forth coming.

You buy and almost immediately, you notice the market going against you and your like what?! Like you've got some spy galss centered on you or some moderator of the platform stationed on you to alter the moves once you just get in.

Well, there isn't anything like that. I recall some time last year around December, i was actually watching Ethereum to experience some down side but, it kept rising and rising. At some point, I was tired of the long time in waiting and 2 days after I bought a couple of $ worth, the market started falling to some significant place on my balance. I was amazed and displeased at the same time but, there is always a chance to get back on track in hodling. I did hodl and eventually, it reversed and I profited in the new month.

So, don't be so confident in your predictions but you could find some comfort in hodling when the market isn't as you predicted. In time, you just might profit. Again, its best you know, there isn't any watchman stationed on you, its just the market and price playing its tricks. You can only try to understand but, uiu can't fully equate it.

If you can identify it easily, you will be able to stop yourself from falling for this reverse psychology if it doesn't benefit you. Well, tools and logic should go hand in hand when you are trading because it helps you stay on top but you have to balance both, if you overwork one side, it wouldn't be good.

I have been experienced doing this reversal psychology before which leads my trades sometimes effective and sometimes don't. For an instance, when there is an urge of hype in the volume, I go to the opposite and got some profits because of the market recovery.

However, not all times it can be profitable. It is still important that you still rely on technical  analysis plus the other tools so you wont regret doing reverse psychology.

There are those that fall into the reversal psychology, but mostly other people that were here for a long time wouldn't think that market doesn't want them to take profits.
That is why it is called market in the first place. There are group of people selling and buying at the same time.
It isn't up to anyone's favor.

Just the same way you don't just jump into a moving train same applies to trading. You don't expect to join a market that has done up to 3 candlesticks and don't expect a reversal. Unless there are confirmation of a continuous trend you stick to it but in cases where there are no indication of the market direction stay off that particular trend. Most reversal pattern don't have what it takes to keep and sustain a trend for a longer time while some has. It's adviceable especially for newbies to join the trend when it's just starting so that once you hit your target profit you can close for the day.

Here we need to remember the people who still hold their nerves for embracing their bitcoins tightly since 2009/2010. When you believe into greater future of bitcoins then current prices may seem like nothing. One proven example is winklevoss brothers. I never call anyone greedy for holding bitcoins for infinite timeframe targets.

That might be out of debate. When more people get into meditation and start sharing their experiences, we may consider as one of method to keep ourselves calm.

It's not easy to control your emotions if you don't have a training with meditation. My teacher in Psychology said that thing in my class, it is difficult for humans to control emotions because we are an emotional species and she even goes as far as to say that it is the reason why our progress as a species is slow because we always put emotion in the equation.

I think in this case you are ready to hold for an indefinite period of time. don't let a crash like 2018 make you panic. I really appreciate your persistence, and you are not tempted to sell even though it has been a fantastic profit. but don't let this happen because you are greedy

The scientific name for it is post-purchase or pre-sale regret, which is a condition that comes after we buy a product or sell a share, and we discover somewhere that the price that we sold or bought at was not appropriate.
It is an instinctive thing and everyone wants to make profits and sell at the best price, but conviction always teaches us to take advantage of these mistakes to make better guesses in the future and not rely on them alone, otherwise it ends with unjustified greed or fear of losing the opportunity.

It's not like reversal psychology or anything. The price rise and drop is a very normal thing that happens everyday. It's just when people invest, they start to get a little paranoid when they see a small drop in the price. They tend to think its going to drop even further and then starts to hesitate. Then you know what happens next. They panic sell everything at a loss. After a price drops a little and starts to increase, they start to regret what they did and buys at the higher price. The cycle keeps on continuing. And this is one of the main reason why someone should understand how the market works and be prepared for those rise and fall of the price.
Others that are saying people should keep their emotions aside - that's actually impossible. You are a human with emotions. You can't just get rid of emotions.

I know leaving suggestions for others quite easy but it's quite complicated to follow your own life. To be honest, most of the time when I bought a coin it gets a hard dump, but once sold the coin gets a huge pump. I know there was a matter of patience. But usually, we aren't familiar with unlimited patience and that's why we regret it. Once I was holding doge a few weeks ago, there was no pump and eventually, I sold in the loss. After sold just a week later start the pump and you can see the current situation. So I believe those who have too much patience trading suit for them. We are here to lose only, I am not hopeless and still trading. But not involving with big trades. Doing a few small trades.