Psychological Trading(Crypto/Forex).

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image by Tima Miroshnichenko at Pexels

What is psychology:
Psychology is basically the way we think and react to something. in this case the way we think and react to the market.

Psychology Is one of the major things that will affect your trading life and it's very important, just because you see a coin pump 500% doesn't mean you should buy, there coin's called PUMP and DUMP Coins, so be very careful not to buy the pump then it gets dumped on you after you buy it or better still if you want to buy a pump and dump coin or a shit coin, buy it with money you're ready to lose, so you don't end up stressing yourself mentally.

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Image by Andrea Piacquadio

Also let's say an exchange want to list a coin, the smart trader's buy the coin form another exchange and send it to the exchange that wants to list the coin, before the coin is listed so they don't get burnt when it dumps, because when a coin is listed it first pump's or spike up then dump's, this type of trading doesn't need any form of technical analysis, just simple psychology (common sense) and most people always fall for this they come in to the market and see a coin just made 1000%, they FOMO in then coin dump's on you. so be smart, and always remember you can't catch all the moves in the market.

The smart thing to do when you missed a coin that was listed, wait for it to dump then buy the dump, because after a coin gets listed it must surly pump then dump.
for example: let say a coin gets listed it pump +500%, it's very possible that the next day of few hours after it got listed, it will dump 250% or more before it will come back up after consolidating for sometime.

Some other people do something I call "Try You Luck (Gamble)", let's say in the morning you see a coin has pumped 20% then you rush in hoping it will pump 100% before evening time, sometimes it might work out for you, some other time you will lose badly.

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image by Yogendra Singh at Unsplash

Or buying too many coins with small portfolio, just because you think you will make huge profit when you do that, but the truth is if you get caught in a dip or dump, like the recent dip's that the market just experienced, you won't like what you will see in your portfolio. just hold good projects that you know won't crash and that your portfolio can carry, you don't expect to have a $100 portfolio and hold 10 coins, that's just wishful thinking that will end in tears.

Trade With Your Head Not Your Heart✌️.

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