From my personal experience as a crypto trader , over-confidence tends to cause a bad result for me in most situations while trading on the crypto market.
Over-confidence sometimes make me take some certain trading decisions which makes me ignore risk management when making those trades on the market , that is because I was so confident that my prediction will come true , but surprisingly the market will go against my prediction and I end up with massive loss on such days and it causes problems on my investment because I exposed a huge percentage of my investment on those trades.
Another one which just happened recently was within the last 24 hours , I did my market analysis and I was so confident within myself that bitcoin will reach $25,000 before the end of the weekend , and so I wanted to trade futures and buy bitcoin immediately when it was at a price of $23,800 .
Some of my friends who were crypto traders advised me not to take the trade at that moment or I should ensure that I use a tight stop-loss and that I do not risk more than 1% of my capital on the trade , but because I was feeling over-confident towards the bitcoin market , I refused to listen to the advice , I went ahead to take the trade and even risk 20% of my capital on the trade , but guess what ?? The bitcoin market experienced downtrend instead of uptrend that I was expecting , the bitcoin went down from $23,800 to $23,100 and the trade hit my stop loss and I had a 20% loss , it was painful for me though...
And that experience is another reminder to me that over-confidence kills in crypto trading , but the issue i have is that i have tried to overcome the over-confidence when trading crypto but it is not really working or it was not consistent for me.
Have you experienced over-confidence as a crypto trader before ?? How did you defeat the problem ?. Or how are you defeating the problem ?? I will love to hear your opinion.