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Emotional Management: The Invisible Variable Determining Trading Level

The greatest enemy of traders is not the market, but their own mind.

Common Emotional Traps in Trading

1. Greed: Reluctance to exit after profits
When profitable, many people fantasize that gains will expand infinitely and are unwilling to take profits. As a result, when the market reverses, they not only give back their profits but also incur losses.

Solution: Set a phased profit-taking plan, for example, reduce half the position when profit reaches 5%; use trailing stop-loss to lock in profits.

2. Fear: Hesitation to cut losses when incurring losses
When unrealized losses grow, traders often hold onto hope: "Just give me a little more time, it will recover." This leads to increasing losses, eventually becoming unbearable.

Solution: Set a stop-loss before entering a trade and execute it without exception; use smaller positions to reduce psychological pressure from stop-loss triggers.

3. Anxiety: Inability to wait for opportunities
Many people know there is no trading opportunity at the moment, yet they always feel compelled to "do something." This anxiety leads to frequent ineffective trades.

Solution: Set a daily maximum number of trades; relieve anxiety through meditation or exercise.

4. Overconfidence: Loss of control after consecutive profits
Consecutive profits can create a false sense of superiority, making traders believe they "understand the market." These individuals often go all-in on the next trade, resulting in total failure.

Solution: Reduce position size after profits to stay calm; review trades regularly to remind yourself that the market is always unpredictable.

#Amber宋宋 #Trading Psychology

#BTC Today is still another day of rampant memes, with the main focus remaining on Binance's two saints. Keywords in tweets and replies may become meme hotspots, so choose ones with relatively higher holders, engagement, and trading volume. Most importantly, make a profit!!!
!!! Be cautious about participating in random memes; there's always a risk of total loss!
The market was relatively stable over the weekend with minimal volatility, but there was still a slight increase today!
🧧🧧🧧

Love you guys ❤️