Psychological Analysis for trading Crypto

[pawanjain]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

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[avikz]

The technical analysis itself is a method of capturing and predicting the psychological mood of the market. One great example is Japanese Candlestick which is used to predict the bullish or bearish mood of ĺ market. But that won't help in an unregulated market like cryptos.

Stock/derivative market is strictly regulated. Which means it reacts based on certain set of rules. There is no such rules exist in the crypto market and that's why it is easier for the whales to manipulate the price. The same is not really possible in regulated stock market. So it's nearly impossible to get a psychological mapping of the crypto market at this point of time!

It will become a possibility only if the world crypto market comes under a single regulation and follows a certain set of rules. But I don't see a possibility now!

[Oilacris]

Psychological and Emotional should really be enhanced into this kind of market.We aren't saying fundamentals and technical doesn't work but most of the time we do see that these 2 things does commonly affect traders on this area.

If we can combine all these things together with traditional analysis,it might not give precise results but somewhat it do gives advantage compared to others who aren't aware of these things.

[shield132]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

Only technical analysis of price isn't correct, every news have some affect on price, especially negative ones. But problem is that you have to be very active and read news everytime, a lot of people are lazy and that's problem. Once coinmarketcap removed some exchanges and price had fall. Once some exchanges stopped withdraw and price felt. This is just example of how every news can affect price and you have to consider it.

[South Park]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

It is possible but there are at least two issues with this, the first is who do you think gets to know the news even before they are published? The whales of course, which means that by the time you try to take advantage of the news the move may be over already, and second how will you know in which direction a particular news will move the market and how much it will? Lets suppose that Google plans to release its own coin, is this bullish or bearish? And regardless of the direction how big the movement will be? 1k, 2k, 5k or it will be even bigger than that?

[Julien_Olynpic]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

It can really help in trading. For example, in trading, you can use the index of fear and greed. If the index shows extremely low or extremely high values, you can try to open positions for buying or selling. I know traders who do this. But how successful they are, I can not judge.

[MonsterV]

The technical analysis itself is a method of capturing and predicting the psychological mood of the market. One great example is Japanese Candlestick which is used to predict the bullish or bearish mood of ĺ market. But that won't help in an unregulated market like cryptos.

Stock/derivative market is strictly regulated. Which means it reacts based on certain set of rules. There is no such rules exist in the crypto market and that's why it is easier for the whales to manipulate the price. The same is not really possible in regulated stock market. So it's nearly impossible to get a psychological mapping of the crypto market at this point of time!

It will become a possibility only if the world crypto market comes under a single regulation and follows a certain set of rules. But I don't see a possibility now!

Well it is true, Technical analysis always correlates with fundamental analysis and psychological analysis, we cannot ignore all three. Sure enough in Japanese candlesticks where when we pay attention to the candlestick going up and down then we are actually paying attention to the psychology of traders in the market.

Maybe the crypto market will be more difficult to analyze because the crypto market is more manipulators and does not have a single rule like the stock market or forex.

[Coyster]

Psychology has to do with the mind, and for some scholars the mind actually holds all human ideas, and if one can dig dip and aptly scan his or her mind for ideas, then they'll make more correct decisions.
With that being said I do not think psychology analysis would actually work in trading, it doesn't have any technicality, and for me it's a strategy that is totally based on luck.

If it's incorporated to complement for other strategies that one is using, then it's cool as it could play it's own part, but solely as a strategy on its own, it wouldn't work if you ask me. 

[lixer]

I think psychological is not as important as people make it out to be in crypto neither, of course charts and technically analysis all are falling short of meeting the expectations too but it is not purely emotional neither, there is a bit of technical involved. It is basically combination of all of them if you ask me, there is emotional involved but there is technical involved too.

How it happens is that people check the technical analysis first then make an emotional decision according to that, so basically technical plays a role of showing people how it should move and then people move according to what they feel like that technical analysis is showing. There is also whales which is neither emotional nor technical, they are purely manipulative and do whatever they want.

[jhongzjhong]

I do not know which better analysis in using to analyze in the crypto market. Since you are asking which analysis I used during my trading time is "Theoretically" analysis, it's all about theory and yet, it is an unpredictable price but I think this has a sense. The very common analysis in trading is a technical analysis which really fit into it, I won't agree on Psychological analysis will have a high chance of getting profit. Because every one of us has a different emotion, I think Psychological Analysis is good only for gambling.

[bitgolden]

I only know of 2 trading strategies, which are technical analysis and fundamental analysis, I have been used to these two since the time I started trading Forex and I thought I was a master of it then, until I joined cryptocurrency traders, and I must really confess to you, it seems like these two are not working for cryptocurrency market at all and I fee those who claim it has been working and just using psychology with it.

I even feel that trade most traders here are just simply relying more on that psychological analyses than technical analysis because there is too much of volatility in this market for anyone to use both the TA and FA to predict the market accurately, and don’t forget that crypto market is also a speculative market, which makes it very difficult to make an accurate prediction through these strategies.

[Slow death]

imagine that you spend hours analyzing the altcoin X chart and while you are analyzing the altcoin X chart, other people are following the altcoin X thread, twitter, discord and telegram. the altcoin X dev say in the thread, twitter , discord and telegram that your altcoin X will make a great partnership and the next minute the altcoin X has a big pump. this is how the crypto market works. all the person should do is follow the news on:

- news channels

- telegram, discord, twitter and Bitcointalk

[pawanjain]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

It is possible but there are at least two issues with this, the first is who do you think gets to know the news even before they are published? The whales of course, which means that by the time you try to take advantage of the news the move may be over already, and second how will you know in which direction a particular news will move the market and how much it will? Lets suppose that Google plans to release its own coin, is this bullish or bearish? And regardless of the direction how big the movement will be? 1k, 2k, 5k or it will be even bigger than that?

You have a really good point here. This just made me think that not all people think alike and hence people may react differently to different scenarios.
Lets take your scenario, if Google releases it's own cryptocurrency then there will be some people who would think it's a good news that Google is getting engaged with crypto thus buying more coins.
But there will also be some people who would think if Google releases it's own coin then it might be a threat to bitcoin meaning it might result in bitcoin going down thus selling their coins.

So I guess Psychological analysis wouldn't help in such cases at all.

[Bitcoin Smith]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

in sometimes the psychological analysis are also helping to make the decision to be properly but it will not necessary but some people trusted this kind of analysis also helpful for them so there is no problem with that if you also want to make the psychological analysis then there is no problem with that.

[carter34]

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?

The psychology of ourselves is important first. If we can build a psychology that can help us control our emotions in the market then we can begin to understand the general psychology of the market. But, even most times, whatever whatever is called psychology of the market can deceive people in taking decision.

Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

Relying on news, event and people's emotion to place a trade order can be very risky. Sometimes, some news could be positive but actually doing the negative.

[Vispilio]

The main issue with this question is that the assumptions you are making are too broad.

"Technical Analysis" for example covers such a broad spectrum of indicators, methodologies and theories that to make a general sweeping statement like "it works" or "does not work" for crypto currencies would be utterly absurd.

I can guarantee you, however, if you pick only very few technical indicators, then study, upgrade and fine tune them to complement your own understanding of and approaches to trading, you would greatly increase your chances of profitability in crypto trading as well.

[dothebeats]

It does not IMO for crypto traders do not work/react collectively even if a huge news comes out in the open, though on some occasions news can move prices in a substantial way. In my years with playing crypto, I've seen the market evolve and display a somewhat similar behavior to stock markets. Although it still retains its sheer unpredictability for the most part, having some traditional stock traders move into the crypto scene helped shape the environment that we have right now. Psychological analysis won't work in a large scale for the crypto market, but perhaps TA and fundamental analysis soon would, given that more and more stock traders are also tossing and turning crypto.

[Torps1]

I think as most effective as the fundamental, sentimental, technical, etc analysis, so are psychological and emotional balance in other to become a successful trader. Many traders who suffer severe losses during trading actually lacks emotional and psychological balance.

[SquallLeonhart]

in my opinion basically in the same market. forex or cryptocurrency, can use technical or fundamental analysis that is technically the same. but the analysis that most determines success is psychological analysis. psychological analysis holds 80% of trading, despite having a good technical analysis, but can not control emotions, I think just waiting for regret

If we are to carry out trading survey right now, you may find out that majority of people who trades only base their trade on psychological analysis, which makes their trade sometimes look like they are making a gamble with it. Those who trade with psychology are not different from those who gamble because if you look at their life, they only use their mind to predict numbers and not strategy because the game itself is not a strategy game.

Not that we should not apply psychology, we can work on all the three to make a better trading experience. Trade without Technical Analysis and Fundamental Analysis is just null and void. Technical can actually be difficult for some people thou, but better we just learn it if we really want to trade.

[john_nautica]

Technical analysis, Fundamental analysis and Sentiment analysis are some types of analysis which works well in Forex and Stock market.
But none of these works well and in sync with the crypto market. Is there even a single type of analysis which can give if not accurate then at least a near target price ?
Most of the times the market plays against us which indulges us in bearing losses.

Do you guys think Psychological analysis can help us in making better decisions and setting better targets?
Predicting the price as per the news and events in the market and how people react to it could may be give us better profits.

I think psychological analysis is needed to make a decision, although currently psychological analysis does not have a big effect but maybe it can be used as one of the things that must be applied in us. but the biggest contributor to decision making is good market conditions and self-confidence.