Trade Bitcoin Trading

Psychology of Bitcoin Trade Market

The reason 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 cannot beat the btcusd market, but because they don't have the right mindset. Bitcoin psychology is all about transforming your mindset.

In Bitcoin, you must first master your method and then put in many hours of learning how the btcusd market works.

The cryptocurrency market is too complex and there are many factors that have a huge impact on the daily fluctuation of bitcoin prices. Traders should understand how the online cryptocurrency market works through studying bitcoin trend characteristics and also how these fluctuations take place.

Psychology and Emotions

In the btcusd market, winning is a matter of the mind. Studying the psychology of the btcusd market takes into account what influences others - including the mass psychology of the people that trade bitcoin on a daily basis. Anything involving winning or losing big sums of money becomes emotionally charged. Winning depends on knowing your own mind and also understanding how mass psychology moves the bitcoin prices.

In most cases when traders invest in bitcoin crypto, they invest more than just money - they make an emotional investment. This is where most go wrong; being right becomes more important than making money. When the transaction goes wrong since they have already made an emotional investment they let their decisions to be ruled by their emotions & they hold onto their losing transactions in the hope that it will bounce back. Unfortunately their losses become greater and they find it even more difficult to close their bitcoin orders.

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

Bitcoin psychology will form a good foundation for profitably - it is about learning how to keep emotions out of the picture, & not to letting these emotions control your bitcoin trading transaction decisions - trader behavior changes very little with time, as humans will always make the same mistakes over & over again.

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

  • Greed
  • Fear
  • Hope

Six Tips for Transforming Your Mindset

1. Define your goal.

There are many important Bitcoin questions that you need to answer before jumping into the bitcoin market. Developing and defining agoal will give you a begin point to your success.

2. Keep it simple.

Some people use more than 5 indicators on one chart analyze and to inform them of their next move with no success or even breaking even. Thing is that more indicators don't equal more accuracy.

The 3 most powerful tools to use are:

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

3. Do not get emotional.

If you're attaching emotions to your bitcoin trades because there is real cash involved you need to change your mindset and start following your plan. If you are a beginner trader with no previous experience always start with training and learn until you begin making profits on you Bitcoin demo account before investing your capital.

4. Nothing wrong with breaking 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 bitcoin trend to reverse instead cut your loss and move on. There are endless profitable opportunities.

5. Speculation is your worst enemy.

Don't speculate on where bitcoin price maybe heading. Always use your bitcoin charts and your plan & study the bitcoin trend before opening a transaction. The bitcoin trend is your best 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 an open winning transaction at hand do not allow it to turn against you. It is better to place a stop 5 pips above the entry opening point and breakeven/or win little than to let it turn into a loss.

For how to utilize these tips look at the Bitcoin plan guide: the section about this is illustrated below.

Crypto Psychology and Risk Management PDF - Learn BTCUSD Psychology

Psychology Section on Bitcoin Plan

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