#Gate广场新手村第六期

Jesse Livermore once said, "The greatest enemy in trading is not the market, but yourself. Controlling your emotions and avoiding greed and fear are essential for long-term survival in the market." I deeply realized this in my recent trades. Recently, Bitcoin and Ethereum have continued to pull back, but the altcoin market has been vibrant, and I also participated in the hype. After battling with well-known names like jellyjelly, TA, ZEC, AIA, and EEVA, flipping positions became the norm. However, significant pullbacks, mental breakdowns, and chasing highs and lows were constant companions. After a while, I took stock and found that not only did I not make money, but I also lost a significant amount. Reflecting on this period, I realized that my mental imbalance was the biggest reason for my losses. I summarized the most common "four sins" in this regard. Come and see if you are also like this:

First Sin: Greed

Before opening an order, people are often relatively calm and have a rough profit-taking plan in mind. However, once an order is opened, especially after making a profit, their mindset can become overly complacent. Emotions can be excessively influenced by the joy of profit, leading to greed. They may feel that their original profit-taking plan was too conservative or set a mental target for themselves, such as "I must earn enough 1000u" or "Just another 500u and I will exit." As a result, the market may eventually turn, leading to all profits being given back or even resulting in a loss.

Second Sin: Fear

When the bubble bursts and prices plummet, or when one's positions incur excessive losses, greed instantly transforms into fear. Afraid of further losses, one hurriedly closes positions, forgetting the originally set stop-loss price. However, what may break you is not the last straw, but the inner demons created by your imagination of future prices.

Third sin: unwilling to accept failure

When people are at a loss, they often have a mentality of unwillingness to accept it, wanting to make up for the losses in the next two or three trades. As a result, they do not summarize their failures in time and are busy opening new positions. Consequently, after opening a position, it often leads to another failure. In this situation, it is easy to become impulsive, continuing to open trades frequently, and ultimately losing balance in their mindset, resulting in chasing highs and cutting losses, which leads to significant losses.

The Fourth Sin: Restlessness

Sometimes the losses are not caused by the fluctuations in the market, but by the restlessness in our hearts that "cannot stand the loneliness." When we are out of positions, we always want to open a trade. It feels uncomfortable not having a position, and when we see an opportunity that is actually not an opportunity, we may feel that "the opportunity must not be missed," leading to wrong decisions and resulting in losses.

So how can we avoid losses caused by emotions? This is actually quite an anti-instinctive process, and I summarize the following 3 points to achieve this:

First, establishing a clear trading plan is fundamental. Before trading, set entry points, stop-loss points, and take-profit points, and strictly adhere to them. This way, when the market fluctuates, trades can act according to the plan, avoiding being swayed by emotions.

Secondly, staying calm and objective is key. Market fluctuations are the norm, and one must learn to accept losses as part of the trading costs. At the same time, regulate your emotional state through methods such as meditation and exercise to keep a clear mind.

Finally, continuous learning and reflection are fundamental to improving emotional management skills. Traders need to constantly learn market knowledge, enhance their analytical abilities, and at the same time, regularly review their trading records to analyze the impact of emotions on decision-making, thereby gradually improving.

In the world of trading, technical analysis and fundamental research are certainly important, but emotional management is the core that determines long-term profitability. As the old saying goes: "He who knows others is wise; he who knows himself is enlightened; he who conquers others has strength; he who conquers himself is strong." Traders can only navigate the turbulent waters of the market steadily by overcoming their own emotions, ultimately achieving wealth accumulation and spiritual growth. Wishing everyone the ability to conquer themselves and make money every day!