Buy the direction… not the price: A common mistake that costs many people their money.
One of the most incorrect phrases that we all hear from many people. Don't invest all your liquidity at once, but buy a portion and divide your purchases into stages, so that when the price drops, you can buy again and lower your cost. This sentence is catastrophic like this "in this way", because you are only thinking about the price without considering the direction. In financial markets, we are supposed to buy direction, not just price. I understand that it's not intentional, and that's why we said to mention it.
One whose portfolio has dropped significantly and is losing, for example, 50%, what can be done?
We will talk, God willing, about an important topic for people and for me because I made some major mistakes recently and I'm trying to fix them. One whose portfolio has dropped significantly and is losing, for example, 50%, what can be done? Of course, before we continue, answer this question: surely all of us, and I am the first, discover every day the importance of caring about our losses and keeping them small, even if there are many; the important thing is that they shouldn't be big. And of course, those who managed to do that are the ones whose positions are relatively good in the market. Now let's talk about what happened to most of us: we stayed in the losing currencies and didn’t sell them when the loss was nice and light.
$BTC Done A successful and happy trade, God willing We are supposed to witness strong upward momentum and rapid price spikes accompanied by gaps that will take us beyond the 72k levels Our first target is 77500 And our second target is 85k
Many people will ask: So if I sold at a small loss and the market went up after that, what should I do? This is a topic we will discuss later… The important thing is that this kind of thinking should not prevent you from executing a stop-loss.
In crypto, we have two very dangerous biases:
First: aversion to loss It makes you refuse to sell when the currency breaks the stop.
Second: confirmation bias. This starts after the price drops on you.
You find yourself: • Looking for positive tweets • Only listening to analysts who see a rise • Saying the project is strong and the fundamentals are excellent • Averaging down and increasing the quantity
Why? Because your mind does not want to admit that you were wrong. So you create a false hope for yourself… until you reach despair and sell at the bottom.
The truth is that confirmation bias is a child of loss aversion. If you accepted the small loss from the beginning and considered it a natural cost in a volatile market like crypto… You will save yourself from a series of catastrophic decisions.
A small loss is a decision. A large loss is the result of stubbornness.
The hardest thing in crypto is not the volatility… But admitting that you were wrong.
And we will explain the psychological biases later, God willing 🙏🏼🙏🏼🙏🏼🙏🏼
Momo_AIR
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Psychological Biases in Trading Why do we incur large losses in crypto? Not just because there's no commitment or stop loss… but due to a deeper psychological factor called Loss Aversion.
Simply put: We feel pain from losses more than we feel joy from gains.
In crypto, the situation becomes riskier because the fluctuations are very violent. The price drops 10%… you think it's okay, it will bounce back. Drops 20%… you think the whole market is crashing. Drops 40%… you think I'll wait a little longer. Drops 70%… you sell at the bottom of despair.
Why didn't I sell earlier? Because your mind refuses to acknowledge the small loss… so it magnifies it for you.
The problem is that this bias is useful in our everyday lives, but in trading, it makes you: • Hold onto the asset while it's falling • Justify negative news to yourself • Refuse to implement a stop loss • And only sell when you lose hope The solution? Treat crypto as numbers, not emotions. Set an exit point before you enter the trade. Accept small losses… so they don’t turn into a disaster.
The toughest battle in the market is not with the chart… but with yourself
Psychological Biases in Trading Why do we incur large losses in crypto? Not just because there's no commitment or stop loss… but due to a deeper psychological factor called Loss Aversion.
Simply put: We feel pain from losses more than we feel joy from gains.
In crypto, the situation becomes riskier because the fluctuations are very violent. The price drops 10%… you think it's okay, it will bounce back. Drops 20%… you think the whole market is crashing. Drops 40%… you think I'll wait a little longer. Drops 70%… you sell at the bottom of despair.
Why didn't I sell earlier? Because your mind refuses to acknowledge the small loss… so it magnifies it for you.
The problem is that this bias is useful in our everyday lives, but in trading, it makes you: • Hold onto the asset while it's falling • Justify negative news to yourself • Refuse to implement a stop loss • And only sell when you lose hope The solution? Treat crypto as numbers, not emotions. Set an exit point before you enter the trade. Accept small losses… so they don’t turn into a disaster.
The toughest battle in the market is not with the chart… but with yourself
The market always needs fuel to move, and the fuel of the markets lies in liquidity. With each market cycle, new waves come with big dreams and ambitions, but they quickly shatter like those before them, repeating the cycle over and over. As long as the dreams of quick wealth remain, the fuel of the market will be abundant. You always remain the one who chooses the side you belong to. Will you be among those who understand the truth and decide to deal with the financial markets according to their own rules rather than according to their personal dreams? Or will you just be "fuel for the market" during one of its cycles before being replaced by another after you lose your validity?
$ETH We will talk, God willing, about Ethereum. 1- The first image shows the first impulse wave of Ethereum and its complete correction.
2- The second image contains the first wave consisting of the main wave 3 of Ethereum, which clearly shows that its first sub-wave is within the main wave 3. Wave 1 (Leading Diagonal) where the peak of wave 1 overlaps with the correction of wave 4. I hear you, my friend, asking why wave 5 is truncated. If you look at the same image, you will find that wave 3 has extended by 261%, and the extension in 3 suggests the truncation of 5, and it is fundamentally complete internally in its five-wave formation according to the main law of waves.
3- So what comes next in the third image is the correction, which is of the type (Running Flat) Where wave B has created a value higher than the previous peak and a false breakout of 123%, which is a common ratio for corrections of the type Regular Flat and Expanded Flat. If you, my friend, could read five waves in the last decline of Ethereum, you have established the bottom of Ethereum and completed its correction. To increase the confirmation, this type of correction does not break the bottom A.
However, if you could not read five waves within the last correction, it is considered an expanded correction, and its correction levels reach 161% from AB to finish C around 550.
I believe that Ethereum has completed its correction because I can read the last five-wave formation, and we will maintain the bottom A, and it will not break, God willing.
Sorry for the long message. Successful and happy trading. #ETH #تداول #Market_Update
We previously mentioned that it is necessary to return around 60,000 to confirm it with a lower bottom, noticing the buying power and price action when it approaches for confirmation.
As we mentioned, 60,000 is considered the bottom of a drawn price channel on the complete chart of Bitcoin from the peak of wave 1 to the peak of wave 3, connected to the bottom of wave 2. We expect it from Elliott Wave to end wave 4 at the bottom of the channel, and the bottom of the channel has indeed been visited at the price of 60,000. We want to observe buying strength and a stronger subsequent wave with divergence between the peaks and troughs supported by trading volumes and surpassing the 72,000 regions above. When Bitcoin returns to confirm the bottom of 60,000 and build upon it with a higher bottom.
Approximately the target of the model is below 65,000, targeting the broken model to fail by trading the price above 71130.
$ETH We will talk, God willing, about Ethereum. 1- The first image shows the first impulse wave of Ethereum and its complete correction.
2- The second image contains the first wave consisting of the main wave 3 of Ethereum, which clearly shows that its first sub-wave is within the main wave 3. Wave 1 (Leading Diagonal) where the peak of wave 1 overlaps with the correction of wave 4. I hear you, my friend, asking why wave 5 is truncated. If you look at the same image, you will find that wave 3 has extended by 261%, and the extension in 3 suggests the truncation of 5, and it is fundamentally complete internally in its five-wave formation according to the main law of waves.
3- So what comes next in the third image is the correction, which is of the type (Running Flat) Where wave B has created a value higher than the previous peak and a false breakout of 123%, which is a common ratio for corrections of the type Regular Flat and Expanded Flat. If you, my friend, could read five waves in the last decline of Ethereum, you have established the bottom of Ethereum and completed its correction. To increase the confirmation, this type of correction does not break the bottom A.
However, if you could not read five waves within the last correction, it is considered an expanded correction, and its correction levels reach 161% from AB to finish C around 550.
I believe that Ethereum has completed its correction because I can read the last five-wave formation, and we will maintain the bottom A, and it will not break, God willing.
Sorry for the long message. Successful and happy trading. #ETH #تداول #Market_Update
Okay, as a preliminary image, the percentage that stopped was 261% which we shared its image here.
This is a preliminary image; if it does not exceed its peak of about 5600 by 1.31% which equals 5750, then it will take a downward direction. The downward direction will be approximately: 4500 ~ 4300 and this will just be a rebound.
3800 ~ 3500 and from this point we can say it's a rebound or a new rise, and there will be good things, God willing.
The question now is, if the downward direction is confirmed, where will the money that will exit go?
We previously mentioned that it is necessary to return around 60,000 to confirm it with a lower bottom, noticing the buying power and price action when it approaches for confirmation.
As we mentioned, 60,000 is considered the bottom of a drawn price channel on the complete chart of Bitcoin from the peak of wave 1 to the peak of wave 3, connected to the bottom of wave 2. We expect it from Elliott Wave to end wave 4 at the bottom of the channel, and the bottom of the channel has indeed been visited at the price of 60,000. We want to observe buying strength and a stronger subsequent wave with divergence between the peaks and troughs supported by trading volumes and surpassing the 72,000 regions above. When Bitcoin returns to confirm the bottom of 60,000 and build upon it with a higher bottom.
Approximately the target of the model is below 65,000, targeting the broken model to fail by trading the price above 71130.
When the story turns into an illusion... How the media can mislead you in financial markets
The market always needs a story, Market always need a story And the story is what feeds the rise and fall Look at how gold has been driven up by a story until it became a certainty among people that this rise is due to that particular story! Once Venezuela, once Russia and Ukraine, once Iran, and once the collapse of the global monetary system You will say that all of this is geopolitical events and international and regional disturbances
One of the most important reasons for success or failure in financial markets is the timing of buying and selling.
Some people treat the market as if it should operate according to their whims, buying in a downward market under the pretext of long-term investment, or selling in an upward market in hopes of a decline. But the truth is that the market dictates how we should act, depending on its direction.
This means that long-term investment is not suitable in a downward trend, nor is selling in a generally upward direction.
The first step is always to determine the overall direction of the market, and then we start choosing the right timing for buying. But be careful…
Just because the direction is upward doesn't mean you should buy at any time. The trend may have reached an advanced stage, and buying at that time can be very risky, like buying near the peak or conversely, a significant drop doesn't mean prices have become attractive and this is a true signal to buy.
That's why technical analysis not only determines the direction but also helps you choose the best timing for entry and gives you early signals on the likelihood of a trend reversal.
In short: The direction tells you what to do… And the timing tells you when to do it.
In all the markets in the world, you will find people standing in lines if the shop owners made a sale But in the financial market only, you will find people fleeing and stepping on each other if the shop owner made a sale A week ago, everyone was fiercely defending the rise of gold and silver... and that it is the safe haven during crises... and that it enters the chip industry... and that it is God's currency on earth... etc... etc.
What is herd behavior, and why does it appear and have a strong impact on financial markets?
Most research has shown that the ideas of the "herd" tend to conform to the group from which they are formed, and acting against the group gives a feeling of discomfort. Therefore, individuals often prefer to follow the crowd to avoid making mistakes. This behavior can sometimes lead to acting randomly and illogically. Such biases are not limited to individuals but also extend to professionals. Consider the number of funds and institutions that have experienced record losses in market crashes, especially since those who drive them are originally part of the crowd.
🐈🚩 Beware.. " The dead cat bounce is not a buying opportunity! Traders fall into the trap of the "false rebound" after a sharp decline, thinking that the price has begun to recover, but the reality may just be a Dead Cat Bounce. What is the story of the "dead cat"? The term is derived from a saying on Wall Street: "Even a dead cat will bounce if it falls from a great height and quickly enough".. but in the end, it remains dead!