Trading psychology | Bitcointalksearch.org

buwaytress

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Quote from: hugeblack on April 26, 2020, 01:10:15 PM

The problem of fear is solved by controlling decision-making based on learning and repetition. Therefore, the more information and the more frequent transactions, the less the effect of fear.
Do not forget that many of those who are driven by their emotions are people who are inexperienced, but (repetition & learning) makes them less effective.

In addition, there are trading bots and other automated methods that reduce the impact of those psychological factors.

Also, the knowledge that even if your trades were to fail and enter a long and deep streak of failing, you're still protected by the fact that each trade was set at a stop loss allowing you to lose very small amounts of capital. Easiest done at non-leveraged trading, and conservative losses that'll mean even if you were to lose 10 in a row, you'd get off with 10% capital loss (for example).

People fear when they've risked a lot. Over-exposed on margins and taking risks beyond their ability to absorb it.

So agree. Leave everything to bots (entry and exit) but also set them up with conservative strategies that let you sleep, knowing that even in worst-case scenarios, you're okay.

Sanugarid

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Quote from: YOSHIE on April 26, 2020, 08:41:17 AM

If it is associated with Psychology with trade, it certainly belongs to its field.
Psychology, arguably the science, of course, the science of commerce, learns how people trade in commerce and the behavior of people in general.

The main goal of the most important in understanding the method of psychology in trading, especially yourself, maybe at a glance you can understand the psychological nature and what you are likely to trade.

Psychology revolves around humans, trader are humans and so it is. We can absolutely tell that there is a psychology behind trading, however to find the answers individually is very impossible, and as the OP insist it, selecting variation to a possible psychology in every trader is pointless, you'll just see a various direction for all possibilities that every trader could make.

Quote from: YOSHIE on April 26, 2020, 08:41:17 AM

If you talk about Emotion, of course you have to throw it away, if Emotion arises in trading, you might end up in the wrong judgment, this is often experienced by traders in general.

Psychology as inclined with emotion is bad for trading, every decision you'll make should depend on your knowledge towards the market, the study that you have analyzed and technicalities on all corners.

milewilda

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Quote from: khansindid on April 26, 2020, 06:35:23 AM

The psychological aspect of trading is extremely important. Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. To accomplish this, they need a certain presence of mind. They also, by extension, need discipline, so they will stick with previously established trading plans and know when to book profits and losses. Emotions simply can't get in the way.

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

So you are talking about stocks trading on here but basically crypto market is just the same.They do only differ when it comes to legality and volatility aspect but all of the concept is just the same.
When it comes to psychological aspect then this had been always a problem on most traders where both things with emotion and this one will surely be the biggest challenge into this kind of career.
You wouldnt know on what would be the next action you would take if you do meet up a certain situation.So profitability will always vary on how a trader would risk up on that manner.

so98nn

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Quote from: hugeblack on April 26, 2020, 01:10:15 PM

The problem of fear is solved by controlling decision-making based on learning and repetition. Therefore, the more information and the more frequent transactions, the less the effect of fear.

Yes, the fear can be overcome with the knowledge. That's why people in share market and stocks keep updating themselves with tips and information that is obtained around the globe.

In fact the market moves according to the surroundings. Mostly people go in blind and think that crypto market is just volatile, it keeps going up and down and may be they can just slip in some money and get back more. Lolz.

It doesn't work like that.

hugeblack

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The problem of fear is solved by controlling decision-making based on learning and repetition. Therefore, the more information and the more frequent transactions, the less the effect of fear.
Do not forget that many of those who are driven by their emotions are people who are inexperienced, but (repetition & learning) makes them less effective.

In addition, there are trading bots and other automated methods that reduce the impact of those psychological factors.

Assface16678

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One of the most enemies in terms of trading is the emotions and we cannot deny it because this is part of the nature of the humans getting greed, doubt, and getting fear those are the common things we are facing when we are in the world of trading. First, in being greedy even we already earned a lot of profit into our quota still some of us wants to get more and sometimes this may cause of having trouble instead you already got a huge income it decreases because you wage more and hoping you will earn back more income but instead you lose more. Second is doubt, most of the people getting doubt about the things they do they don't have a concrete decision about the things they made like there are a lot of negative thoughts and what-ifs that are trying to stop them to do the right thing. Last is the fear most of us getting fear because we don't want to get lost we don't want to be in a lower position so the best thing we do is getting play safe and become contended into things we earn than risking a lot to get more profit.

enhu

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Quote from: khansindid on April 26, 2020, 06:35:23 AM

The psychological aspect of trading is extremely important. Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. To accomplish this, they need a certain presence of mind. They also, by extension, need discipline, so they will stick with previously established trading plans and know when to book profits and losses. Emotions simply can't get in the way.

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

This is not the case in the cryptocurrency market, the only bad news around here is if the team turned out to be a scam. Before you can even realize the yare scam they already have made all the dumps and exit.

This is why if you have to trade, do it in BTC/USDT you wouldn't have to worry about a certain stock because you are in the right market. Altcoins I think are for people who can wait to find out.

YOSHIE

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If it is associated with Psychology with trade, it certainly belongs to its field.
Psychology, arguably the science, of course, the science of commerce, learns how people trade in commerce and the behavior of people in general.

The main goal of the most important in understanding the method of psychology in trading, especially yourself, maybe at a glance you can understand the psychological nature and what you are likely to trade.

If you talk about Emotion, of course you have to throw it away, if Emotion arises in trading, you might end up in the wrong judgment, this is often experienced by traders in general.

gantez

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I understand that jumping out and in of trade is one way to lose a trade, I know that is sure. This is one aspect of trade phychology we need to understand and this takes a lot of experience to understand.

maydna

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Fear is something that always comes to us, especially for new people in trading. They feel afraid to start trading because they think that they will not make any profit. But that is not right because as long as we can try to analyze the coins, especially we already learning about analyzing the chart, we can have a chance to make a profit. We think that we will make a mistake, so that makes us afraid to buy and sell the coin. But without trying to trade, we will not know how to trade with the right, and we cannot get an experience which will be important for us to learn more about trading. We need to control ourselves, especially our feeling about what will happen to us because that will prevent us from getting the experience. Trust yourself that you can trade with the right, don't think much about getting a profit or get a loss because that will not be necessary for the first time you trade. You need to gain experience in trading so you can know how to analyze better.

Wexnident

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Traders should also note that Understanding Fear and tackling it doesn't necessarily mean the same as ignoring it. It isn't the same idea as something like throwing caution at the wind, but rather you yourself accept the fear and try to attack it. Ignoring it is like ignoring the fundamental problem in a certain project, leading to more losses instead of you trying to actually attack it. Sadly, making wrong moves when accepting fear also leads to losses, but hey, at least you tried right? That's the difference. The "trying" part.

We all experienced that here and honestly, it proved to be quite a valuable experience, at least to me anw. When I first traded I couldn't stop looking at the charts every minute and literally was hanging at the edge of my seat. I decided to compromise after just 2 days and say that maybe I'm not cut out for this. Sadly that made me lose quite a few bucks.

Mpamaegbu

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Quote from: khansindid on April 26, 2020, 06:35:23 AM

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

This is true, sadly, and I am a victim. I hate to remember that incident. In fear I sold off my 270 units of BNB coins over a hitch I saw on CMC. At the time I thought the Binance coin was having problem and thereby delisted from the exchange as its data didn't appear on the CMC that day. I read problem into that and hastily sold off (though with a 10% profit.) only for it to start skyrocketing to over 100% profit two days later. FOMO and FUD are two key ingredients in business.

davis196

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Quote from: khansindid on April 26, 2020, 06:35:23 AM

The psychological aspect of trading is extremely important. Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. To accomplish this, they need a certain presence of mind. They also, by extension, need discipline, so they will stick with previously established trading plans and know when to book profits and losses. Emotions simply can't get in the way.

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

I guess you are talking about day traders and scalpers.Not all traders are day traders and making fast decisions isn't necessary if you are not a day trader.
I don't get the point of your post.Such posts discussing trading psychology are popping in the forum every once and a while,and they are all about the same stuff-control your emotions,maintain discipline,etc.
Let me tell you something.Controlling you emotions is easier said than done.If you are a newbie,there's no point to write such forum posts,preaching about "emotional control".You are not an experienced trader and you don't know how an experienced trader acts,feels and thinks.

shollyen

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Quote from: khansindid on April 26, 2020, 06:35:23 AM

The psychological aspect of trading is extremely important. Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. To accomplish this, they need a certain presence of mind. They also, by extension, need discipline, so they will stick with previously established trading plans and know when to book profits and losses. Emotions simply can't get in the way.

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

The bolded might make them fall, a victim of FOMO, if care is not taken.
It is normal for one to react to the news, most especially as a trader or an investor, which is not bad, but the action we take on it will justify the end result.
If a trader cannot take the risk, particularly when the news is scary and can cause fear to the majority, it will be better to just liquidate and wait for what will happen next. If it dumps, you can wait further until there is stability. Which is what I do personally. Even if the market pumps immediately, I will not buy back until there stability.

Jating

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Quote from: khansindid on April 26, 2020, 06:35:23 AM

The psychological aspect of trading is extremely important. Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. To accomplish this, they need a certain presence of mind. They also, by extension, need discipline, so they will stick with previously established trading plans and know when to book profits and losses. Emotions simply can't get in the way.

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

On the opposite side of the spectrum, there is also one emotion that it is already very important to control - GREED.

That's why the first lesson in trading is that you should control your emotions, you don't need to snap and make a decision with a blink of an eye. One thing to mitigate this is to to have an entry and exit plan. In short, stop-loss. It is important to have limits and if my chance you hit your exit strategy, then obviously, it need to be trigger and you need to take the profit. You need need to be greedy and stay inside as it might back fire on you in the long run.

khansindid

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The psychological aspect of trading is extremely important. Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. To accomplish this, they need a certain presence of mind. They also, by extension, need discipline, so they will stick with previously established trading plans and know when to book profits and losses. Emotions simply can't get in the way.

Understanding Fear
When traders get bad news about a certain stock or the general market, it's not uncommon to get scared. They may overreact and feel compelled to liquidate their holdingsand go to cash or to refrain from taking any risks. If they do that, they may avoid certain losses, but they also may miss out on gains

Topic: Trading psychology (Read 134 times)