Overview Overview

There is such a line in the movie "Wall Street" that "trading needs smart poor people, they must be hungry and thirsty, and they must be calm. They may win or lose, but they must keep fighting."

Report report

Trading is not an easy job. A trading strategy that works at the moment may not work the next second. The trading strategies that made you a fortune last year disappeared from the market this year. If you want to be a trader, your work includes finding the most effective trading strategy at the moment, but you must also learn to face the ever-changing market calmly. In this case, traders need to adapt to the market and constantly look for new ways out.

In the process of adapting to the market, you need to do a lot of preparatory work instead of simply waiting. For example, from a technical point of view, BTC is an important support level at $10,000, and theoretically it should rebound at this position. BTC was running between $9,000 and $10,000 for a long time before it last broke $10,000. To enter the market at BTC $10,000, more preparations are still required:

• Is a rally above $10,000 possible? If so, how will the entry point be judged?

• Are there any sellers in the market that would make me give up on the idea of ​​grabbing a rally at $10,000? If so, how to make better trading decisions?

• Which digital currencies should start to grab a rebound? Although the rebound trend of BTC is relatively obvious, can you find a digital currency that is more suitable for your trading logic?

• When BTC is still some distance away from $10,000, how to make money from the decline of BTC?

• What to do if BTC falls below $10,000 after BTC enters the market at $10,000?
  

There are many uncontrollable factors in the market, which affect the direction of the price. Only by making enough preparations can we continuously adapt to the market. But in fact, the above trading behavior of grabbing a rebound is not recommended. Due to human nature, many investors want to catch the bottom of the price. I am obsessed with the pleasure of "everyone is drunk and I am alone", hoping to gain the admiration of others by predicting the bottom of my own success. But all this is just their self-awareness, and in fact bringing self-awareness to trading will only make them aware of the dangers of the market. The purpose of trading is to make long-term stable profits, not to prove that you are smarter than others. Why do those who try to catch the real bottom understand the dangers of the market? Because when your judgment is wrong, you can suffer huge losses because of it. Even if you do catch the bottom of the market in retrospect, you cannot be sure that the price is really the bottom when you enter the market, so you are likely to sell prematurely. Generally speaking, the performance of the price at the bottom is quite weak, and the market may be accompanied by many indicators that continue to weaken. Many sellers are still looking for opportunities to unload their positions, and buyers will be quite cautious about the timing of entry. When you see price weakness, you may sell too early in the rally and miss the entire rally. The really reasonable way to grab a rebound is to wait for the price to confirm the bottom, and then consider entering the market when the price starts to rise.

It will never be smooth sailing in the trading process. All efforts are just to make your trading winning rate higher, but losses are inevitable. It is difficult not to affect the emotions of traders when faced with losses, and all technical analysis should not be divorced from behavioral psychological analysis in essence. Under such circumstances, trading behavior will add its own subjective consciousness. All traders should learn to control their emotions when the market is out of control and release themselves from their psychological comfort zone. Trading itself is a very stressful thing, and it is difficult for a person to maintain calm and restraint for a long time, especially when a wrong transaction destroys the entire month's income, it will make you frustrated and frustrated. It is a pity that this feeling of frustration will not only fail to improve your trading level, but will multiply your sense of loss caused by losses, further aggravating the spread of mistakes. So when you're at an emotional low, the only thing that can lead you out of that is to calm yourself down. Everyone has mental weaknesses that need to be worked hard to overcome. For example, some people hope that the market can prove that their views are correct; Some people hesitate when faced with opportunities with a high reward-to-risk ratio. These are all psychological weaknesses, and the only way to defeat them is to keep practicing, there are no shortcuts.

The most important point in overcoming psychological weakness is not to "fall in love" with your trading variety. In psychology, there is a term called "sunk cost", which refers to expenses that have occurred in the past but have nothing to do with the current decision. From the point of view of decision-making, the expenses incurred in the past are only a factor of the current state, and what the current decision-making needs to consider is the expenses that may occur in the future and the benefits they bring, not the expenses incurred in the past. When people decide whether to do something, they not only look at whether it is good for them, but also whether they have invested in it in the past. We call these unrecoverable expenditures, such as time, money, energy, etc., "sunk costs". The concept of "sunk costs" is used in economics and business decision-making to refer to costs that have already been paid and cannot be recovered. Sunk costs are often compared with variable costs, which can be changed, but sunk costs cannot be changed. Once you and your trading variety start to "fall in love", the invisible sunk cost will affect your decision-making. People’s mentality is different when they hold currency and when they don’t hold currency. Even if you have bought and held the same digital currency, in this case, any bad news about this currency will You will be afraid of news and rumors, or disgusted, repelled, tend to be nonsense, or selectively ignore; and good news, you will be more excited than people who do not hold this currency, because you hold , I would rather believe in the good news about him than allow others to say that it is not good at all. As the saying goes, children are good for themselves—because they are like their own children after buying them. The longer the time, the more thoughts and thoughts you spend on it, and the more feelings you invest in it. Therefore, It is difficult to make up your mind when selling at a floating loss, because it is not only a financial loss, but also an emotional loss. This situation is very obvious when buying quilt covers and passively holding stocks for a long time. So there is a saying, don't "fall in love" with a trading variety, that is, don't have feelings for him, because once you fall in love, it will affect people's reason and judgment. People with rich experience in love should have a deep understanding of this point - whoever gets serious first will lose, because whoever falls in love with the other party first indicates that whoever will pay more, and it also means that whoever does not make a deal in the end will bear more The cost means that the party who pays more puts the initiative of this relationship in the hands of the other party, and he is in a disadvantageous position of passive obedience. Under such circumstances, mentality and reason are bound to be affected. This is like buying a stock. If you don’t choose a currency that suits you, and you don’t enter the market at a good buying point, you will lose money after buying it, but you don’t want to give it up. You think it is good and believe that it will be profitable one day. However, the fact is that the longer the time, the more you lose, the more you think, and the more you invest, the harder it is to let go. But the trend is the trend, and it will not change because of who sticks to it.

Conclusion

risk warning:

risk warning:

• Be vigilant against illegal financial activities under the banner of blockchain and new technologies. Standard Consensus resolutely resists the use of blockchain for illegal fundraising, network pyramid schemes, ICO and various variants, and dissemination of bad information.