Trading = Analysis - (Instinct + Emotions)

[Zilon]

Analysis is what differentiate a crypto market trader from a crypto market gambler. When i mean analysis i don't just refer to blindly following support and resistance zone because it's the most common tool used in the crypto market. You will hear some OG say wait for support to buy and when it gets to resistance don't hesitate to sell. Support and resistance could be a powerful tool if it works in confluence but with the current trend support and resistance alone can be so undependable.

The market gets more complicated has more adoption hits the crypto community causing the margin between the bulls and bears to remain in  constant fluctuation pending when a temporal direction is reached. And has long as this direction isn't permanent the tools for analysis keeps updating.

Technical analysis this days seems even more frustrating as candle sticks keeps pushing trades against traders. Because emotions and instincts are been mistaken for analysis. Trading the obvious is rather the aim and not trading the expected or assumed.

[Review Master]

Technical analysis this days seems even more frustrating as candle sticks keeps pushing trades against traders. Because emotions and instincts are been mistaken for analysis. Trading the obvious is rather the aim and not trading the expected or assumed.

Indeed, it's emotional damage !! You know what i mean. On a serious note, we should refrain from trading while market is having high volatility because of any major news like FED Rate Hikes. As a result, we won't do the same mistake while analyzing and even taking trades. I usually do this because we won't need to trade every single week, just take a break for a week and make profits in the next one while market isn't having major events or volatility. Basically TA+FA = Profits From Trading

[palle11]

Emotion is a big challenge to traders but if you have traded a long time the mistakes pushed out or caused by emotion will be reduced. Instinct is used more at the area of support and resistance to know when the break out has fully formed, coming on that support trading doesn't really mean you have sell when it is broken immediately likewise the revise for resistance because there is retest that can happen many times and the market revise back till the next week so if you are unluck to dive in, you are probably going to lose.

[Lanatsa]

Emotion is a big challenge to traders but if you have traded a long time the mistakes pushed out or caused by emotion will be reduced. Instinct is used more at the area of support and resistance to know when the break out has fully formed, coming on that support trading doesn't really mean you have sell when it is broken immediately likewise the revise for resistance because there is retest that can happen many times and the market revise back till the next week so if you are unluck to dive in, you are probably going to lose.

You would able to  get rid or able to have good control of your emotions if you are really that gaining sufficient experience within the market.It is understandable that you would really be that getting lots of errors

and mistakes when you are just starting or when you are still a noob.You cant really just be going directly as a pro without passing on being a noob which you would really be able to experience those mistakes and

gaps specially when you are just starting.You would able to soon find out on what necessary things which you would really be needing for you to handle out market volatility.
Mistakes are inevitable but as the time passing by then you would really able to lessen out due to experience.

[maydna]

That is correct. Currently, the condition of the crypto market is more complicated to analyze even though we have learned how to use multiple indicators at the same time because the price of bitcoin in the market can change direction at any time. This makes many of us wrong in buying or selling, but some people can still benefit from the current situation. Current trading can trigger stress levels to be higher because of the reversal that occurs in the market every day, making it difficult for us to analyze.

[hd49728]

Technical analysis this days seems even more frustrating as candle sticks keeps pushing trades against traders. Because emotions and instincts are been mistaken for analysis. Trading the obvious is rather the aim and not trading the expected or assumed.

Technical analysis is difficult to make it correct and mostly people make incorrect analysis technically. Moreover even if you make a good analysis, it does not mean you will be able to take advantage of it. Emotion and discipline will be decisive factors to use a good analysis and get good profit.

Many people get a same good signal but only few of them have enough patience, have good discipline and are able to earn profit.

[pooya87]

Analysis is what differentiate a crypto market trader from a crypto market gambler.

I don't think you can find anybody who would disagree with saying the crypto market is a bunch of altcoin pump and dump groups. We also know that pump and dump is a form of market manipulation. In other words it is something that is not predictable due to lack of logic.

In other words your post is more right about bitcoin but when you talk about crypto market aka altcoins, it becomes less right.

The market gets more complicated has more adoption hits the crypto community causing the margin between the bulls and bears to remain in  constant fluctuation pending when a temporal direction is reached.

But that also means the order books become more packed with orders making manipulation that much harder. A good comparison is between bitcoin and small altcoins. You have to spend millions of dollars to push bitcoin price up or down a little bit but with a couple of thousands you can pump most of the altcoins significantly.

Technical analysis this days seems even more frustrating as candle sticks keeps pushing trades against traders.

Another indication that TA doesn't work in markets that are dominated by manipulation.

[xzy887]

 Now everyone becomes a holder. And wait until the market corrects.

[pooya87]

Now everyone becomes a holder. And wait until the market corrects.

As long as holding is not confused with bag holding

Holding is when you buy more and store something that is in a dip (undervalued) and has a potential to rise back up. Like bitcoin.
Bag holding is w hen you bag hold something that is overvalue but still dumps and has no potential of rising back up ever again. Like altcoins. If you look at 2018 and topics that were made those days you can see how people are advising others to be "patient" and bag hold altcoins that kept dumping and never went back up again to the 2017 prices like ETH that to this day has not been able to go back to its 2017 price despite all the pump attempts.

[Wexnident]

Technical analysis this days seems even more frustrating as candle sticks keeps pushing trades against traders. Because emotions and instincts are been mistaken for analysis. Trading the obvious is rather the aim and not trading the expected or assumed.

Well, I guess that's a plus in some sort of form since it makes those who are correct in actually reading the market profit more. I wouldn't pull down instinct sometimes since a good call can sometimes just come from a gut feeling, especially if it was backed by the current news and whatnot. Heck just determining the general trend imo is more than good enough, and any specifics after that are just a bonus to taking in more profits.

I'd also just put emotions under control, they exist as a form of warning sometimes but if you know how to control them and if you believe in what you've studied/analyzed then in the first place I don't think your emotions would take control of you.

[palle11]

Mistakes are inevitable but as the time passing by then you would really able to lessen out due to experience.

Don't have the notion that there will be a time when there will not be mistake even as an experience trader because if there is no mistake that means we continuously having a perfect market which is not possible. We rise and fall in trade because of mistake. No winning always but better profit than losses is the reason some traders are still in the market and others gave up.

[Franctoshi]

Proper Trading and market analysis is not just only focusing on support and resistance or TA alone in general,  and this is why trading is not just for anybody , Trading psychology/emotional trading is a very important and another key aspect of one's trading life that most traders neglect after market analysis and hence only focus on TA. About 90% of traders don't control their emotion while trading and hence loose money while they're supposed to make profit due to emotions, this was equally a big challenge that I was faced with during my early time of trading, I close trades when I'm not supposed to and wouldn't leave the market as when due, will  want to recover every lost that I encountered while trading forgetting that sometimes you win and some you loose, until I realized that whenever I lost about two trades in a day I have to take a leave and shut my computer down for another day because some day the market won't just favour you no matter your level of analysis even with all the best tools.

[taufik123]

Don't have the notion that there will be a time when there will not be mistake even as an experience trader because if there is no mistake that means we continuously having a perfect market which is not possible. We rise and fall in trade because of mistake. No winning always but better profit than losses is the reason some traders are still in the market and others gave up.

Experience is a warning not to do it in the future. Experience with frequent mistakes will give you more experience on how to avoid unfavorable market conditions.
However, even if we have sufficient experience in trading, mistakes are inevitable.

A professional even suffers a loss due to some errors they cannot detect. The market is not always predictable, sometimes the market becomes very wild and not as desired. Profits and losses are mutually exclusive, but the percentage of profits must be higher than the losses.

Analysis + emotions will give you an idea of ​​how to deal with the market well, analysis without emotions will mean nothing. Emotions are the final determinant of what needs to be done or the moment where the right decision must be made.

[Solosanz]

If you still let your instinct and emotions play on your trading decision, I'd say you're not a trader since you're nothing different with any people who randomly bought any shitcoins by hoping the coins will going to the moon after few weeks or months.

A professional trader will always have a time management, self control, consistent, and doing various analysis.

My advice is to ignore any instinct and emotions you have if you're want to become a professional trader, try to be more objective.

[palle11]

A professional trader will always have a time management, self control, consistent, and doing various analysis.

True and those are the qualities of professional trader but this is not always the situation with trading because you have some news or impromptu fundamentals that were not taking into analysis like information, news and they hit the market while you were already in a trade and that will definitely change the parameter of how the trade was going, now emotion will come in .

My advice is to ignore any instinct and emotions you have if you're want to become a professional trader, try to be more objective.

Instinct are not to be ignored but we are to manage the capacity of trade we have and to use stop loss.

[serjent05]

This is one of the reasons why we shouldn't neglect the market sentiment in our analysis.  Market analysis isn't just checking the chart, the candle stick, and other technical stuff.  People who are investing and trading have emotions, so better to take advantage of the people's emotions on the market.  This doesn't mean that we as a trader must trade with emotions, it is best to nullify our personal emotions to gain a better understanding of the market scenario.  I also wouldn't remove the instinct(seeking) factor, because instinct is honed by long-time experiences in the market.  It is part of logical behavior inculcated in our brains when certain events happen.

What I am saying is to rely on the knowledge we had according to the facts and data presented in our research.  Technical analysis is always best to be combined with fundamentals in case a market situation is presented just like what OP stated.

[Oilacris]

If you still let your instinct and emotions play on your trading decision, I'd say you're not a trader since you're nothing different with any people who randomly bought any shitcoins by hoping the coins will going to the moon after few weeks or months.

A professional trader will always have a time management, self control, consistent, and doing various analysis.

My advice is to ignore any instinct and emotions you have if you're want to become a professional trader, try to be more objective.

This is definitely true. A professional trader won't allow his emotions to control his decisions. You should focus on your goal and objective so you will not be distracted by the changes in the market due to its volatility. Trading has lots of challenges so you better be ready to face all of them. Control your emotions or else they will be the ones to control you. Focus on your analysis than your personal instinct. Apply the basic fundamentals and strategies that you know are effective, especially in times of doubt and confusion.

Being professional isnt a state that you could really gain up directly without having able to experience lots of trials and errors which would basically involving emotion handling too which it would really be

that crucial on making yourself a better trader because if you are someone who are really that impulsive specially on hard or tough decisions then you would definitely fail or find yourself to be not that much

effective on trading career but of course no one would really able to get it perfectly on just few tries.Just continue to engage and try to be
versatile on various conditions and make yourself way more better compared on yesterday.

[harizen]

Technical analysis this days seems even more frustrating as candle sticks keeps pushing trades against traders. Because emotions and instincts are been mistaken for analysis. Trading the obvious is rather the aim and not trading the expected or assumed.

Just go with the flow and be used to it. Emotions are really part of the analysis by most. Instincts are even proven effective to others rather than doing some deep analysis using any trading indicators. It's really hard to go along with the volatile price of crypto.

Failures, disappointments, and regrets just become an issue now because of the bear market.

Once the bull market returns, expect that the positivity will now rise again to anyone.

[adaseb]

Yes this is why many short term traders never make it. They even did a study on this. Many traders that are retail actually take good trades but its their exit that hurts them. They usually take profits too early and let their losses rise exponentially.

This is why many traders usually have 1 bad day and end up blowing their entire account. This happens every few months in crypto. Usually there is a huge liquidation cascade and you hear people losing their entire accounts. This is no different in stock trading.

[AicecreaME]

Emotions plays a big part on us, as a person, that's why there's a saying that once you know how to control your emotion, you'll be dangerous, which is true. Decision making is very important in trading, after you do all the fundamentals to make sure your trade is going to be profitable, and emotion is still the head of it. If you messed up because you're frustrated and stressed because of your past bad trades, therefore the next trade will surely messed up as well.