Trade Bitcoin Trading

Psychology of Bitcoin Trade Market

The explanation why 90% of bitcoin traders lose can be summed up with 2 words:

Bitcoin Psychology

Many people fail on the bitcoin trading psychology front and only a few take the time to transform their mindset. The reason why most people make losses is not that they can't beat the btcusd market, but because they don't have the right mindset. Bitcoin psychology is all about transforming your mindset.

When trading Bitcoin, you need to first understand your method and then spend lots of time learning how the btcusd market works.

The cryptocurrency market is intricate, with various factors influencing daily fluctuations in Bitcoin prices significantly. To navigate this online cryptocurrency landscape effectively, investors and traders should analyze Bitcoin's trend characteristics and understand the nature of these price changes.

Psychology and Emotions

To win in the btcusd market, it all comes down to how you think. Looking at how people act in the btcusd market means thinking about what affects them - like how groups of people feel when they trade bitcoin every day. When people can win or lose lots of money, it makes them very emotional. To win, you need to know your own mind and also see how what groups of people think changes the bitcoin prices.

Frequently, when traders commit funds to bitcoin crypto, they also inject a significant emotional stake. This tendency is the source of many errors, as validating one's judgment becomes prioritized over realizing financial gains. When a trade moves unfavorably, due to this pre-existing emotional attachment, traders allow sentiments to override objective decision-making, leading them to maintain losing positions in the vain hope of a rebound. Sadly, this often results in escalating losses, making the act of closing their bitcoin orders progressively harder and more challenging.

Even when traders make money and let their emotions get in the way, they either become greedy or overtrade.

Bitcoin psychology builds a strong base for profits. Learn to remove emotions from trades. Don't let feelings guide your decisions. Trader habits stay the same over time. People repeat the same errors again and again.

You can learn how to control the 3 most dangerous emotions that tend to cloud judgment & cost you profits. These 3 emotions include:

  • Greed
  • Fear
  • Hope

Six Tips for Transforming Your Mindset

1. Define your goal.

There are many important questions about Bitcoin that you should answer before you start trading it. Figuring out what you want will give you a place to start to be successful.

2. Keep it simple.

Some traders use over five indicators on a single chart to help figure out what to do next, but they don't make money or even break even. The truth is, more indicators don't mean more correct predictions.

The 3 most powerful tools to use are:

  1. Candles (buyer and sellers behavior),
  2. Bitcoin Price action (such as support & resistances), and
  3. Bitcoin Trend-line (up, sideways or down).

3. Do not get emotional.

If you're letting emotions affect your bitcoin trades because real money is involved, you need to adjust your thinking and stick to your trading strategy. If you're a new trader without experience, always start with training and learn until you profit on your Bitcoin practice account before investing real money.

4. Nothing wrong with break even.

Not all your trades are going to be winners. It is better to break-even than to lose. If you know that a transaction has turned against you do not start praying for a miracle hoping for the bitcoin price trend to reverse instead cut your loss and move on. Other better trading opportunities will present themselves.

5. Speculation is your biggest enemy.

Don't speculate on where bitcoin price maybe heading. Always use your charts and your trading plan & study the bitcoin trend before opening a transaction. The bitcoin trend is your friend, so make good use of it by following the bitcoin price charts.

6. Do not allow your winning orders to turn against you.

If you have a trade that is making money, don't let it start losing money. It's better to set a stop 5 pips above where you started and break even or make a little money than to let it become a loss.

To discover effective methods for employing these trading suggestions, examine the Bitcoin strategic guide: the relevant segment is presented hereafter.

Crypto Psychology and Risk Management Course - Learn BTCUSD Psychology

Psychology Section on Bitcoin Plan

More Topics:

Bitcoin Broker