EMPTY YOUR MIND: PSYCHOLOGY OF A TRADERWe have always believed that the business of Cryptocurrency Trading thrives on 3 things – Intelligence, Psychology and Information.
If all humans had the same level of IQ and everyone was emotionally zero (i.e. had similar psychological traits) and if the flow of information to everyone was equal, then what purpose would the Crypto markets serve?
None whatsoever. In fact, it would become the most boring fixed income scheme you could invest in.
Nevertheless, of these three traits, human psychology has the maximum impact on the movement of Crypto prices in the short-medium term.
It is the psychology of a trader to overcome biases and human emotions like greed and fear and envy and desire that sets him apart from the others.
Mostly, a trader just reacts and makes a lot of money if he can correctly predict the behavior of others.
In order to succeed long term you must first understand your self and the relationship between yourself and the market.
Your emotions, thoughts, and perception of the market, and how these relate to actions taken in the market place.
If you do not believe these are directly connected with your actions and therefore performance, you will likely struggle to maintain a consistent performance.
Rather than viewing your emotions as an enemy, learn to use them to your advantage.
Learn to understand the circle or cycle between you and the market.
