Psychological Analysis for trading Crypto

[omonuyak]

Psychological Analysis is quite deeper than of a simple market understanding or we just do the basic things. Traders must importantly know about analysis, dig deeper for more understanding and create our own TA's. This will help us to become more profitable than casual traders but of course, we need to consider also the market situation as a basis of our TA's for it become applicable or gonna help nothing.

If you developed a TA that help you understand the price action? You have gold in your hand. Instead of mining bitcoin, you will be getting it through trading. Technical indicators such as candlestick do bring into clear view of the position of the market situations.

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[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?

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.

It is my opinion that any concept can be traded as long as you have a positive expectancy but you need to complement your idea with some other tools, it would not hurt to use some technical analysis to try to determine your entry and exit points, so if for example you read a news for which you are expecting a positive movement in the market then instead of getting into the market immediately you wait until your entry signal is reached, this will somehow reduce your expectancy but it will also eliminate many bad trades you could have taken.

[arpon11]

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 give us better profits.

The fundamental, technical and sentimental analysis worked well and it is human's emotions and feeling that has a problem. I have been using some combination of moving average cross with volume indicators to trade USD/BTC and it works accurately and the reasons why I lose is not about the indicators but my greed and fears. Sometimes out of greed I jumped into the market too early or go in too late but if you follow all the indicators especially the technical indicators such as candlestick, moving average, Fibonacci retracement, pivot point, macd and Relatively strength index you will find out that you will make good profits.

[ethereumhunter]

I think psychological analysis will help us to make better decision to reach our goals because we can think about the positive and negative that we might get if we decide one thing. But that depends on the person because I don't think that every people can decide with easily to something. Maybe they need to know many things before they can decide. So it will help us to decide to the better in the current situations, and we can solve every problem we had.

[leowonderful]

Whatever type of analysis you're doing, don't base your entire trade off of that because TA and psychological analysis is just something that gives you an edge and something to help you make a decision while trading. You should also be adding your own thoughts into trades. Nothing's going to always give you an exact target price, but TA gives you something to work with at the least so that you can plan out points to take profit, where to set stoplosses and such.

[Kasabus]

Whatever type of analysis you're doing, don't base your entire trade off of that because TA and psychological analysis is just something that gives you an edge and something to help you make a decision while trading. You should also be adding your own thoughts into trades. Nothing's going to always give you an exact target price, but TA gives you something to work with at the least so that you can plan out points to take profit, where to set stoplosses and such.

Definitely, it was. We can't just fully relying into TA's or any technical analysis, candle stick or etc...Most important we are aware of the current market flow and how we adopt into it. Many traders we're losing cause they are on the TA's all the time and never have their own market understanding.
There is something we do while trading and giving extra effort to be more knowledgeable than of simply following TA's with others.

[Reid]

You could combine it with technical analysis.
But I doubt it will be a 100 percent accurate. Still there will be holes and you cannot just rely with that.
I guess that is why it is still the best when you are doing it manually.
Instinct also helps to make profits and decides when to buy and sell at the right time whilst bots cannot just do that.

[rodel caling]

In trading didn't ignore to include psychological analysis with also to be include for the decision making using technical analysis how to predict potential coin can give huge profits. if the trader use this ways of ideas in their trading works he/she to control itself becuse using psychological analysis possible to have an bad effect to health.

[el kaka22]

Considering bitcoin is not something that is based on anything or backed by anyone in general it is easy to say that emotional has as much affect on bitcoin as technical one maybe even more so.

Because, after all the bitcoin price is what it is because we said so, nothing else gives bitcoin any power at all, only thing that makes bitcoin 10k+ or whatever it is would always be what people think it worths, we give its value not some country or some government. That is why I feel like (which could be totally wrong) bitcoin has more emotional and sentimental indicators than technical ones, since technical ones show what it "should" do but that doesn't have to be what it "will" do like the stock market predictions or forex predictions people usually make.

[Thanasis]

Whatever type of analysis you're doing, don't base your entire trade off of that because TA and psychological analysis is just something that gives you an edge and something to help you make a decision while trading. You should also be adding your own thoughts into trades. Nothing's going to always give you an exact target price, but TA gives you something to work with at the least so that you can plan out points to take profit, where to set stoplosses and such.

Definitely, it was. We can't just fully relying into TA's or any technical analysis, candle stick or etc...Most important we are aware of the current market flow and how we adopt into it. Many traders we're losing cause they are on the TA's all the time and never have their own market understanding.
There is something we do while trading and giving extra effort to be more knowledgeable than of simply following TA's with others.

No one can make perfect analysis that comes true so all we need to do is just follow the things what we know based on our knowledge or the people we are following which itself an emotional attachment to trading.

[1Referee]

Because, after all the bitcoin price is what it is because we said so, nothing else gives bitcoin any power at all, only thing that makes bitcoin 10k+ or whatever it is would always be what people think it worths, we give its value not some country or some government. That is why I feel like (which could be totally wrong) bitcoin has more emotional and sentimental indicators than technical ones, since technical ones show what it "should" do but that doesn't have to be what it "will" do like the stock market predictions or forex predictions people usually make.

People are only emotional when they invest with money they can't afford to risk and potentially lose entirely.

Most of the rational investors have a pretty solid understanding of risk management and actually stick to it. Even if they lose what they put in, it's just a small fraction of their entire portfolio. The immense growth potential Bitcoin offers to them easily outweighs the tiny allocation they might potentially lose. Risk reward wise Bitcoin is an easy buy.

Being a rational investor without feeling a strong bias towards a certain asset is a fantastic characteristic. Get in and out on time and don't be too greedy. Lovely.

[lixer]

Psychological Analysis is quite deeper than of a simple market understanding or we just do the basic things. Traders must importantly know about analysis, dig deeper for more understanding and create our own TA's. This will help us to become more profitable than casual traders but of course, we need to consider also the market situation as a basis of our TA's for it become applicable or gonna help nothing.

If you developed a TA that help you understand the price action? You have gold in your hand. Instead of mining bitcoin, you will be getting it through trading. Technical indicators such as candlestick do bring into clear view of the position of the market situations.

Do you really believe that all these things works in cryptocurrency trading, because I have done so many technical analysis that does not correspond with what we have in the market, I have seen many people here come up with figures based on their technical analysis and they would come back the next day to predict something else when their first prediction has not come through.

Imagine that we don’t have anyone demand for these coins for the next few weeks, do you think technical analysis would still not tell you something even when there is a factor already that was yet unseen to control the price. I personally do see all these TA in crypto market right now as a waste of time, and something that does not really hold much in predicting prices.

[Distinctin]

I guess the whales in the market are using Psychological analysis for their trading.
They are good in reading the reaction of the typical traders when there's a certain big event in the market, (positive or negative), and with that, they can use their power to manipulate so these traders will panic because they are emotional with what they are doing.

Because they are smart, which they can manage pretty well their mind and emotional, they'll be able to exploit the weak hands in the market.
Therefore, if we like to be successful like them, we should also learn their strategy, or think the way they do so we can follow them all the time.

[michellee]

Is there even a single type of analysis which can give if not accurate then at least a near target price ?

There is no analysis which can give accurate information about what is happening with the market. People could only analyze where the price will move, is it up or down, but we don't know the truth. But at least, with the analysis, we can make two option for the market, and we can moves related to the situations on the market too.

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

I am sure that with psychological analysis can help us in making better decisions and setting better targets, but that will depend on each trader. Some traders can find a way if the situation becomes worst, but the other cannot make it because they already get panic with the conditions, and they cannot think of what they need to do.

[PragueBTC]

TA and fundamental analysis doesn't work as efficiently in crypto since the market is very heavily manipulated.
All the fundamental analysis that you can make comes from less than a dozen of big crypto media. Everyone else just copies information from them.
On stock exchange or forex it is impossible for a small enclave to control the whole market, in crypto it is the unpleasant reality. So just using TA and fundamental is useless. Understanding the mood of the market and playing against the marketmaker is the only possible way to go.
And you always have to be ready for a move which will be completely illogical and will go against TA.

If you take a look at all the major news . Strangely enough they came with perfect timing with price action. Sometimes within hours from certain pivot points, fibo levels, demark 9s etc.
The two undisputed masters of manipulation of the early era were ripple and nano. Nowadays everyone does it.

[Ridwan Fauzi]

I'll say yes, psychological analysis is a tool to avoid us to make a wrong decision especially when we set a target. The psycological thing will read the price movement before and we can predict the future price based on the history. There is no useless thing when have a knowledge or even an experienced in trading field. Even you will know when there is some news that come who can affect to market movement or will not affect to the price movement and these all thing will be decided by psychological analyst that you have to make a decision.

[Kemarit]

I think psychological trading is very prevalent in this market. I'm sure everyone heard about FOMO - this is a classic example of psychological trading. On the other hand, if we are just going to based our strategy on this one, it could backfire on us big time. So for me, it has disadvantages as well. Crypto trading is really very different from traditional approach. We still need to have TA on our side to look for potential break outs in prices. So it's going to be a lot of factors combine that really move this market, news, whales, overall sentiments. So I don't think that Psychological Analysis alone can make the difference here, IMHO.

[HELLOFF]

Since the currency market is not in very good condition today, I doubt that at least one trader is in a calm state today because of what is happening.

[coinhunt]

I agree with avikz that technical analysis already bears psychological analysis in itself.
Predicting the price via news and events, and how the people react on them can be a sort of help, but I think it'll be quite useless as no other type of analysis can predict the rise or fall of cryptos accurately and for 100%.

[Yamifoud]

Since the currency market is not in very good condition today, I doubt that at least one trader is in a calm state today because of what is happening.

And you say that a lot of traders are in panic? And it is good for buyers as they sell their coins at a low price. They often to panic cause they don't have trust towards crypto.
It is sometimes to think not all traders are in good in TA's cause they only follow with news and when they heard FUD's, they absolutely beeing panic and rush themselves to sell their coins instead of being calm.