A few years ago I was day trading futures contracts. I spent several months studying and paper trading and finally opened an account in a US broker and started trading ETF futures on the CME (Chicago Mercantile Exchange) as well as Eurex.
Soon I discovered the only way to manage trading is controlling your mind. I read many trading psychology books and all of them started explaining how it is our relationship with money which is quite different than the relationship we have with the rest of the matters of our life.
We have fear when we do not understand what we are dealing with, this is what I experience from others when I encourage relatives to enter the crypto world with a very small investment to familiarize themselves with it. Then if we are lucky and succeed we feel we are experts and some of us (included me when I was trading) end up losing as we risk too much. When that happens we feel miserable and do not want to share the experience with anyone, similar to the feeling of anyone entering the crypto market to invest for the first time has when the price goes down.
We are all used to money but very few of us understand and are aware of the emotions it produces in us. From all the books I read, there is one, the very first one I was told to read, which does not teach you about technical analysis or trading, it just makes you understand how your mind processes the emotions you feel when you trade, many of them are the same no matter if you trade daily, for long term or just invest.
The name of the book is Trading in the zone by Mark Douglas, I encourage anyone curious about this matter to read it. I've done it several times as it is not one of those books you read fast, you need to process all the words while reading as it is quite profound.
The emotion surrounding money is a huge factor and was one of the things that has continually plagued me. Scarcity mindset. Since coming to crypto 3.5 years ago, I have worked hard to change my thinking around it and slowly I am finding ways to break my cycles and generate, rather than try to hold onto it.
We fear losing - we might fear looking like losers even more.
Thanks for the link :)
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