Topic: Reversal Psychology ! (Read 580 times)

updating prices at any time and seeing the market anytime and anywhere is a characteristic of day traders. but some people can't decide what kind of trading they need and it fits their psychology. shirt term, mid-term or long term. even it was all mixed and disorganized. So good management and a clear strategy are needed.
Psychology becomes the toughest enemy for everyone even if they are a technical analysis professional.

Quick question though, are we bearish or still bullish?.

It's quite difficult as the rate the market switches it trend is unpredictable. Few days we're all bullish, everything is moving smoothly and he price of our favorite cryptocurency are doing great numbers and giving impressive returns of investment then the next second everything goes wrong.

Lets not forget too that our emotions is still having a major impact on the market due to the fact, most of the investors are immature to handle risk of the market as a result of not having prior experience, you can't just expect them to identify this switch of trend.

Also let's not forget there's also the YouTubers (community) giving them false hopes of the market still been bullsih which makes them keep believing and not securing their profit or cutting down their losses.

that's right, as for this or checking activities every time is often done by day traders. they will continue to update prices because their main income is from there. I think that if they are a reliable analyst, it is a natural thing and it is obligatory to know the price every minute.

As for the mistakes that are often made, they are not even called day traders, nor are they long-term traders depending on their situation when they have free time. well that is often a factor that has a negative impact on trade psychology.

The psychology market cycle is right and only market participants reject to accept the truth.

When the market finishes accumulation and begins a bull run, people doubt of a beginning of a new trend. When they accept the trend, it is a period for FOMO and does not last long.

When the market finishes its bull run and begin a bear phase, people don't believe it, hesitate to accept a fact. When they accept a bear trend, they sell in bottom lines.

In this case, it happened to me particularly, when I was starting in the world of trading, I used to be watching every movement of the market day and night, waiting for the market to make the movement that I had set, and the truth was I was getting sick, so much of the body for sitting all day and of the mind because even sleeping I dreamed of trading.

The best thing for these cases is to get a good Exchange where in just 1 operation you can place:

1.- Stop Loss.
2.-Take profit.

In the case of Bitfinex it has it, and the option of leverage is available, of course not 100x like Binance, but if you have those options, then it is much easier to put the position with the stop and take profit, and go and wait for the movement If it was lost, it is time to assume the loss and if it was won, celebrate and on both occasions it is necessary to learn why it was lost or won.

Imagine the difference in checking every 5 minutes as opposed to even 50 minutes.

The brain needs rest and psychology is about behavior and repetition,,, so I agree. The more often you check, the more you build a pattern and repeat, the more your brain craves for that repetition.

That is why reversal psychology kicks in.

if we want to hold it for a long time, I think the first thing we have to choose is a good coin, so that it is certain that there will be no scam projects. indeed short-term trading requires skill, and not everyone can do it, especially for beginners I think long-term trading will be better

Market reversal is unavoidable but once you are sure of your analysis stick to your trade the market will certainly come back to your predictions. Overcoming the psychology of a loosing trade makes most traders give up on their trade too early even when their analysis is right and going by this mindset would only make trading difficult for the trade depriving such from profiting from the market.

yes I support you, by making mistakes and wanting to learn from there, of course,
it must be based on patience, success is not something that quickly dies, everything requires a process,
one way is to learn from mistakes, I also often make mistakes when trading, and I always remember and I won't do it again

this mood start to come when we are newbies but as we trade more we are starting to accept things the way they meant to be .
you trade succesfuly for a profit but after it , the price went for another increase . it will still be a big loss for you if you will put this in your head as this can affect your overall health later on .
better not risk your health for some profits because health is more expensive  

Learn from your own mistake to enhance your chances of success, while also learn with other's failures / mistakes that

will help you to avoid doing the same, yeah right, it's very important to accept the fact that there's no easy and perfect way

you are not exempted to encounter failures, you just need to work on it and see the positive side out from it, once you deal

with those experienced in the right way, you'll see the best outcome to comes up to you.

You are not going to succeed without accepting failures and almost everyone needs to cross this in their life no matter what kind of profession their are doing and what kind of financial stage they are living in, failure is inevitable. Learn from your mistakes which will make you better person in crypto trading and also learn from others mistakes which saves you from losing more of your money while learning a lesson. Be smart and work hard.

Many traders start with a simple trading strategy for example they may notice that a particular currency pair tends to rebound from a certain support or resistance level. They may then decide to add other components that improve the accuracy of these trading signals over time they may require that the price return from a certain support level by a certain percentage or number of pips learn strategies and move forward with positive thinking.

Quiting is not the way to go! you must do better, trade better and hold better as well! The issue of trader's state of mind and his emotion will be a re-ocurrent decimal in trading discussions! You must know what you are doing and be calm as you use tools available to you for decisions making! If your outcome falll short of your expectations, then you must do some post-motem on your appproach and correct the wrongs!

I agree that the trend is a friend but the people don't seem to understand this and that when things don't favor what they speculate, they get mad . One example of a trend was Musk's announcement in suspension of bitcoin payment for Tesla, they could have shorted that moment but they want to be mad about it first and stupidly sell their bitcoin when they could've made a profit out of a really bad trend.

for me, this is a worth bet...

one your mistake, why do you say buying coins is like gambling in a casino? imagine if you borrowed several tens of thousands of bucks in the bank last year to buy Bitcoin or ethereum and then you paid it in installments then you must have made a lot of profit and even paid it off quickly.

we don't know whether the market will continue to fall or experience a reversal like our analysis. but I think trading is an opportunity and a risk. therefore we must also have the courage to take the risk of loss by placing stop losses when our analysis does not work, because there is still another opportunity to look for profit.

I guess if you bought on the dip and there's a chance of any possible reversal with the use and help of technical analysis there's a lot of help to your decision but if you are trying to buy a coin with a strong downtrend I think this is one of the most possible mistakes you have. Sometimes having too many futuristic thoughts gives a negative impact on you or to us, be this is the reason why each of us must have a trading plan like make a trade just only a daily, weekly or what plan do you make always stick to it. One of the best trader characteristics i guess is having a self management.

Making profit from trading requires you trade in line with the trend since the trend is your friend. Successful traders make profit having a good psychology. To be at the top of the league and for one to be at the profit margin 70% of the times it is expected such a trader should acquire a good strategy which constitutes 20% of his ability to predict the  market and 80% of the right psychology because emotions can make a good trader loose out of the market even if such can predict what the market would do in the next minute. The rught psychology pays when you can use it to sustain your strategy.

Yeah, which is basically the rich getting richer and poor being wrecked. This is another bi-product of what happens when people follow some influencers and do whatever their idol is saying/tweeting or even sharing. These influencers are going to take advantage of such followers and slowly churn their money.

Indeed! Make sure any trades you do should end in profit even if you have to wait for a long period of time. This is unfortunately not possible in futures or that kind of trading and that is why these trading methods are advertised the most because even the exchanges I believe, want people to do futures trading and lose their money.

In essence we have to be able to control ourselves because in my opinion it is very influential in making a decision,
the most important thing in any condition try to keep our minds calm,
and in such a condition the market falls indirectly it creates panic but we have to control it

Sometimes we need to listen to our perspectives which of could came to a wrong decision with respect to losses. However, controlling our emotions would possibly affects us internally because when market drops badly regrets also comes in. You'll think of an idea of what ifs, like you're taking advantage by the time the market got an outstanding price then you'll choose not to panic.
So, this made an idealistic point of view now and we should follow what our heart says to avoid certain regrets.

Grateful, panic, it is all in a package with our emotion. Basic thing that we must be good at beside technical analysis. Because if we can't control our emotion, not only we always feel not enough, but panic in every suddenly movement of market can cause we get big losses too and then regret it.

Why would focus on one if you can have both? Technicals plus Fundamentals would be a good tandem if you do ask be but somehow this will require more effort and time for you to seek out these information
for you own benefit or to be add up into your analysis. There no thing on this world would able to happen on what would happen next but at least there are some hints which you can really presume out
on possibilities of things to happen ahead basing up into that sentiment that you have seen. Its up to someone on how they would really be taking it and
make out some appropriate actions for you to utilize such stuff.

 If I could guess the price would go up I would sell my car, home and take a lot of debt for all in, because I believe I will get very rich doing all of that - I don't think that's a good attitude, nobody knows what the market will look like tomorrow, and betting on luck is not professional. I am of the opinion that the psychological aspect of trading is a most important skill, and anyone who is mentally unstable has no place in this market, they should rather play in the casino

Reverse psychology happens every time in the market which can be link to poor fundamental and technical analysis. Most individuals do not always pay much attention to the fundamental aspect of the market which is why they tend to fall into this same psychology of thinking that the market is always paying attention to their market executions.

One has to focus on both the Technical and Fundamental analysis because poor knowledge in one may lead to inaccurate analysis whereby, making it look like the market tends to work against our trades.

A very good psychology coupled with risk management would be a perequisite for a good trader cause this being one of the  characteristics of successful traders who had really acquired much from the market.

I think there is a merit to being aware of what you can and can't do, that is a very important thing to do. Self awareness in the crypto world could basically save you a lot and that is why I think it is very important to not trust yourself completely forever but not doubting yourself completely neither. So, if you know the fact that sometimes you are right and sometimes you are wrong, best course of action is to act as if you are always right while knowing some of them will be wrong and hope that the wrong ones are less of a loss than the right ones profit.

So, you make 100 actions, doesn't matter how many of them are right or wrong because sometimes 99 right could be wiped by one huge loss, so after 100 actions if you are still in profit that is the one that matters.

LMAO, that actually makes sense but as I said, we will have times where we lose and we will also have times where we win.
Nothing can be consistent and so we can't continuously predict the direction of the market.


HODLing has been more beneficial for me and I will always stick to it but at the same time I am also trying to learn to trade with some strategies.
I have allocated myself a portion of my portfolio which I can use to trade while the rest is meant for HODL.

I do not believe in such things as reverse psychology because all these things are just making you weak. If you do the opposite of what you analyze then basically you are doubting your own skills and it is rather gambling than trading. Imagine how would you feel if you predicted the market to go up but you sold your coins because of this bullshit reverse psychology and then the market moves as you predicted, upwards.

It might sound irrational but even crypto trading can be mastered if you just learn what is the right type of trading for you. Some people would prefer altcoins trading, some will have the best techniques for day trading while some might just want to hold. Just see what works for you with small amounts and the one that actually works for elongated periods, just stick with it.

Because I am a contrarian investor, I am very happy to buy when the market is pessimistic and I will sell when the market is optimistic.
and I don't care good or bad news be it from Elon.M or McAfee or... etc
For trading, just take profit as needed.
Every time I post I always say that: The opportunity is definitely there, don't worry if you miss it and I am not  follower a Hype / Fomo
Patience to buy and patience to sell is the key
It may sound like nonsense, but I've been in  the stock and crypto markets for quite a while. and I learned a lot from it.

Yes what OP said is true. I always used to believe that the market is always going against me back when I started trading.
But later I started holding and realized that isn't the case. HODLing gave me good profits and so I have started trading again.
I am learning more about the analysis and I think it is important to know that there will be trades where you lose but there will also be trades where we win.
Giving in the efforts to analyze and to know when to enter the market is the crucial thing IMO.

For years I am saying that everything is gambling! It's the psychology or philosophy, take it as you like, we risk what we have to make more! Even everyday job is investing yourself (body, mind, and soul) to get some money! So it's simple, we invest what we have, it's our capital, bankroll, you name it... capital can be money, body, mind, and soul! In poker we would say, each of us gets the cards, how we will play it, it's up to us!
So whatever we do, whatever we are trying, we are gambling... we are risking what we have to make the profit! Of course, with more knowledge and experience we can minimize the risks, but nothing is risk-free in this world, in this life! And where is the risk, there is gambling!

Psychology is the same because the process is the same! We always risk (gamble) with something we have to earn more money! How we do it, and what works is another story to tell! But when you find something that works for you, something that pays off, you will do it as long as it last, and you will try to become better at that!

When talking about reverse psychology I tried that and I can tell you that I had more success in trading when I traded against my feel. Doing the opposite of what I had in mind payed of the most.

I have a different concept when it comes to psychology, for me psychology is the same all the time, I even talked to a psychologist one day about the psychology of trading and he told me that it was nothing to write home about, that that was an invention to sell, the psychology is always the same, for trading as for sports, personality must be taken into consideration and how is its ability to solve problems in the event of a crisis, based on this it is that possible vulnerabilities.

Thats right. It is only applicable if you arent satisfy enough. This is sometime a gamble to oneself. Everyone came to this point where they are asking themselves should I go for it or not? Then if something good happened. DAMN I should have done it. But when something bad occur, shit good thing I didn't insist on doing it. There's gonna be chain of possibility but if you fully decide 100% then having regrets are not an option whether we gain little that should be bigger when we dumped earlier.

This is definitely a psychological suggestion.

When you heartfully thank for what you get then probably you may not go greedy further; when you are not feeling grateful and then not showing gratitude, you will definitely become more greedy which is the point your emotions are getting more power to control you.

Yeah, it is all about self-control.

Self-control will help a trader to stick within plans. Your plans must include when to enter and where to exit. This simply eliminates the chances of being aggressive or being panic. Just going by plan will get rid off psychological dominance.

This is where people tend to have mistakes. They already win but they seek more and more resulting to losing instead of gaining. Ive been like this many times over and trust me it's better to control oneself even though the coin or tokem you bought increase than your selling price. Be grateful cauae you already gained from it. Be contended with what you already profited.

At first, before getting into trading, you must already be aware that there is associated risks on doing this kind of trading specially in a highly volatile market wherein you have a bigger percentage to get loss if you will not be doing anything and will not strategize your trading properly. It is needed for a trader to have a strong mind and strong heart on doing this because if you lack those, you will not be able to keep up on trading and will cause you early retirement for you cannot endure such situations.

When your predictions are good and accurate then probably you never need to modify your plans and targets. So, psychology will come into action only when you are not doing good with the technical part. The real problem is, under pressurized market conditions you cannot take the right decision which is the reason emotional traders are most of the time facing big losses in the end.

To handle your emotions more effectively then you must have plans for your emotions as well. Taking short break and not chasing your losses kind of things will help along with strict stop-loss for your all trades.

I think that's the main problem with people. Acting based on emotions. Imagine being in a relationship and you are fighting each other by words and most of the terrible cases are because of the overwhelming emotions that people have. It's the human thing that makes us more vulnerable.

Consistency is the key that's why I would prefer a bot instead of myself, unless I feel I want to risk it.

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.

When I was still new in investing and did trading for a while, emotion is one of your adversaries. It is a fact that yourself is your enemy.

Your decisions will affect each other if emotion is triggering you and you don't have a firm style in decision making.

And this is why separating your emotions on your trades is highly important.

It's a given that the market does not want everyone making money as there will be no money flowing around. Understand that odds may always be stacked against you, but making rational decisions and educated moves will prevent you from feeling like the world is against you. There are bad trades and there are good trades, and it's just normal to lose some trades since you can't really predict the market fully. Convert those reds into something that will help you avoid losses in the future by using it as your lesson. Losses happens to the best of us, but leaving emotions out of this loss can help us compose ourselves and do better the next time around.

complete with trading psychology may be more educative, because we already know this will become commonplace in trading or investment. however, measuring a person's level of gratitude is diverse and cannot be generalized in one perspective.

The important thing is that you know when to start with a calm mind, and can control when your mind is chaotic.

I firmly believe that everyone who trades will experience the Psychology of Reversal which creates regret and disappointment and it all affects mood and psychology in an unhealthy direction. If it has a bad influence in your daily life, then you are really a loss. Get rid of that feeling, the opportunity will always be there if you have missed a very good opportunity at this time.

If we buy the price keeps going down, after selling the price is getting up, we assume the market pays attention to us and doesn't support you to make a profit. it is one example of the Psychology of Reversal which always creates deep regret if you do not have gratitude and think it is not your fortune. In this world no one can guess the direction of the market, even the Dev of BTC and Ether themselves cannot predict the price to go up / down. If I could guess the price would go up I would sell my car, home and take a lot of debt for all in, because I believe I will get very rich doing all of that.

Stay grateful for what you get, because luck only comes to a few people. Stay confident with patience because I firmly believe patience will not betray results. Because the market is only a zero sum game, People who are strong psychologically and have the patience and gratitude that will endure. The future of the Cryptocurrencies market is still long, because it is still beginning.

Stay grateful, because if there is not luck, you will not get it. think positively and move forward because the future is still long. Be a Contrarian investor who does not loss your personal life. Because family is very important and opportunity will always be there.

this is one of my accounts, and who knows how long I will hold it. maybe for along time.



I really no intention of showing my portfolio (so that I am not considered a scam), but it's pure that I want to prove that, Patience is the Key

- Edit picture