READ YOU WILL AVOID LOSING MONEY
When participating in futures trading - especially with highly volatile assets like Bitcoin - managing emotions is the key factor that determines success or failure. Here are the reasons why:
1. Futures have high leverage → Emotions can easily get out of control
• With leverage of 10x, 20x, or even 100x, just a small price movement can lead to substantial profits or wipe out your account in a matter of minutes.
• Emotions like greed when seeing big profits, or panic when the account is in the red can lead to:
• Chasing prices when they are pumping.
• Cutting losses too early when the price just slightly adjusts.
• Holding onto losses too long, hoping "it will turn around".
2. Hasty decisions can easily lead to losses
• Unstable emotions can cause you to:
• Not follow the trading plan you have set.
• Change targets/losses mid-way because "you feel the price will go the other way".
• Engage in revenge trading after a losing trade.
3. Psychology affects analysis
• When you fear losses or have excessive expectations, you will:
• Ignore clear technical signals.
• Look for reasons to enter trades based on feelings rather than objective analysis.
4. Those who control their emotions will stick to the plan
• Disciplined trading, no FOMO.
• Knowing when to cut losses, taking profits reasonably.
• Not letting a few winning/losing trades affect the entire long-term strategy.
✅ Ways to train emotional management:
1. Always set stop-loss and take-profit.
2. Keep a trading journal to recognize bad habits.
3. Do not trade when in an unstable mood.
4. Only use capital that can be accepted as lost.
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