How to Become Trading Hamster!Let's consider the typical hamster's behaviour with the example on a chart.
Usually hamsters want to obtain a big profit quickly. They heard about huge opportunities which crypto markets can give and looking for the big pumps.
(1) When the price starts to grow rapidly hamsters usually wait for the confirmation that the pump is real. On this phase hamsters are not believe that the price growth will continue.
(2) The price pump continue and the hamsters execute long position because they afraid to miss the opportunity.
(3) When the price start to go down hamsters panic and exit their long positions. This is the first point when their lose money.
(4) If the price growth continue hamsters think that they made a mistake of early exit and re-enter long position.
(5) But the next candle shows the price drop again, hamsters are nervous but decided to wait the growth.
(6) After the dump the price moves up again and hamsters are happy that they did not close the position.
(7)The price drop again more dramatically. Hamsters close position because of the fear to lose more money.
To sum up, hamsters are driven by emotions, greed and fear. I have already told that to follow the trading strategy is the main way to suppress negative emotions.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
