You can become successful in trading only if you conquer your biggest enemy in trading; “Hope”. It is the single biggest reason for irrational decision-making in crypto trading.

In trading, hope clouds your judgment in two ways;

1.  Hope of recovery

It happens with all the beginner traders that when after taking a trading position, the market goes against the trade position and the trader increases its position instead of cutting out. A false hope of recovery incites the subconscious mind and the trade becomes even worse.

Many times, this false hope leads to skipping a stop-loss in trade. Although it may work in a few trades, doing it repetitively causes liquidation of the trade when the margin limit is reached.

2.  The hope of an unrealistic profit target

The hope of unrealistic profit is very common in Cryptocurrency trading. From social media stories, some beginner crypto enthusiasts aspire to become rich overnight. So they hope their beloved coin will rise 100X which is realistically not possible.
Ultimately, this unrealistic profit target results in losing the legitimate gains when the crypto coin traces back.

Case MANTA & ALT:

See the example of $MANTA and $ALT . Like other newly launched coins, both of the coins have undergone huge appreciation after their launch. Despite multiple times’ price appreciation, the holders of #ALT/USDT are still hoping to hit 1 USDT whereas #MANTA: holders are aspiring for the price to reach 10 USDT. Both of these targets are baseless and arise out of hope.

Remember, the words of legendary Warren Buffet:

“Market is a pendulum that forever swings between unjustifiable optimism and unsustainable pessimism. A REALIST is one, who buys from a PESSIMIST and sells to an OPTIMIST.”

If you learn to be a realist, you will make your way in the crypto market.

#TradingAdvice #TradingEducation #dyor