Bitcoin - how to lose your money - demonstration of FOMOThis is on BTCUSD on the Daily time frame. I get right into my own psychology and explain what I'm feeling terms of FOMO.
I point out how the FOMO mentality causes people to lose big money. I've put on a paper trade, to explain this.
Note that ESMA and the NCA's have pointed out that:
... trading across different EU jurisdictions shows that 74-89% of retail accounts typically lose money on their investments , with average losses per client ranging from €1,600 to €29,000.
Did you get that? if you're a new trader your chance of losing a substantial part of your account is up to 90%!!
We're talking about serious risks in all trading. But where is the risk coming from? It's about a majority of traders having a psychological framework that cannot cope with chaos and uncertainty.
Loads of traders are preoccupied with winning a single trade or not missing what they think is a good opportunity. They're largely influenced, as well by big media and 'forum talk'.
Profitability depends on a consistent approach, avoiding the lure of bandwagons heading in one direction, missing on what turns out to be 'good trades', but controlling loss (the only real control we have).
Just to be clear - I have pointed out the dangers. I have not said that people should not enter on Bitcoin. I actually said if they want to do so, it's better with a carefully managed risk on a much lower time frame. Nothing in here is advice, even if you think of it as such.
I predict nothing.
