What are mental biases in the psychology of digital currency market trading?
Hello, we have come with an important article on the financial market, including the digital currency market. We must tell you that today trading in the financial market has become an important job with high dollar income. But just as your profits and income are in dollars, your losses and problems are also in dollars. But we intend to check one of the most important principles of the financial market for you. We are going to examine the types of mental biases in trading psychology today.
Before anything else, it is better to remind you of one thing. To trade and also to invest in digital currency, you need to convert your capital from Rial to Tether or other digital currencies. We have designed a live digital currency price table for your convenience. With this table, you can easily check the average price of the global market as well as the domestic market. If you have any questions or challenges to understand any part of this article, you can ask us.
When you plan, choose trading as your main job. You should pay attention to a few points, you might think that at first everything is technical analysis. But later, with the passage of time, you realize that fundamentals are also important in this direction. Finally, you will find that risk management will help you along the way. But you know all these things and you don’t act on it. In this case, your trading psychology is flawed and does not allow you to think correctly.
The tips that we will tell you in this article can be constructive for you in a complete and comprehensive way. Note that the best way to master mental biases in trading psychology is to recognize them first. Then practice and repeat on it. In this case, you can be sure that you will do the right thing at the right time. Refer to your trading history as we explain each item to you. And see how many times you have followed it.
When you are an amateur trader or an amateur investor in the field of digital currency, you usually get caught in this trap. Although you don’t have complete information about the market, you think you know everything, but we have to tell you that you know nothing. For example, today Bitcoin has become positive. Shopping on Instagram pages and news sites has started again. Precisely that you suddenly turn your attention from the issues that made the market negative yesterday to the issues that make the market positive.
This is your interpretation of “selective attention”. When you have a specific journal of buying and selling, you will be less likely to fall into this trap. For example, you may have bought the bitcoin that is positive today last week. You are going to sell Bitcoin today. Your attention should now be on your personal strategy and plan.
And not what others say or what analysis of the market they provide for you.Even if you sold and the $20,000 bitcoin became $30,000. In the long run you will be profitable and not others who trade without a plan.
These mental biases in trading psychology are usually one of the most common mental biases among Instagram bloggers and package sales people. For this reason, knowing it, you can have a proper plan for it. When you find a minimal social position among the common people. Everything you say is very strange to them. For this reason, they use all their efforts to focus on the market. For example, they say as we analyzed, as we determined a certain economic index and…
You can find a lot of these examples and get a certain pattern for it. These people think they can direct the market by buying themselves and others. These people do not have a correct view of the nature of the market and think that everything will happen to them simply. When the market is falling heavily, they think that by persuading their friends or some rich people, they can change this procedure. But we must tell you that such a thing is not possible.
If you take a look at the professional speeches of influential people in the market, such as the head of the central bank of America or Europe, you will realize that the speaking of professional and responsible people towards the market is in a way to reduce emotions. Not that they themselves become the cause of excitement in the market.
One of the mental biases in trading psychology that can be significantly studied is the ownership effect. When a trader reaches the average level. This trader can monitor external factors in addition to internal factors. We mean that he can also examine the fundamentals. and influence its results on your analysis. But the problem starts when these people think they have to check everything very carefully.
For example, they think that if they can check interest rate news 100%, they can manage their digital currency assets. But we have to tell you that this is wrong. Why is this wrong, to this heart