I frequently read posts that talk about maintaining sanity and reason when buying or selling this or that cryptocurrency, but it is very difficult for me to understand such a concept. And I find it even most difficult, because I find the cryptocurrency market to be unpredictable, erratic, volatile, and totally irrational.
I am certainly not saying that in the cryptocurrency framework there is no correlation between supply and demand factors from the market, because that's not what I'm saying here; what I am really talking about here is that we cannot control even our own emotions to act on the markets.
Most people are that irrational, and proof of this are the markets; In other words, the reason why the price behavior of cryptocurrencies is so erratic is because people are irrational, most people react and behave in the markets based on their immediate emotions.
Know how to postpone the reward
When I think about these things that I have just mentioned, I always remember something that a trader friend taught me several years ago. Said friend explained to me that most people who trade end up losing, because they don't know how to postpone the feeling of reward. As my friend saw that I did not quite understand what he was referring to, he told me that this means that most people want to win in the market, but the problem why they do not succeed is not because they do not have technical knowledge trading, but because they are desperate and want to get a lot of money fast and easy.
Now, I argued that most people behave like this when trading in the market, because they are poor, and because the needs drown them and make them feel impatient, which leads them to make those kinds of mistakes.
And my friend replied that this was precisely the problem, and that one should not expect anything from the market -neither good nor bad- but that one should act according to each event that arose, and that we should not put money on the market that we cannot afford to lose.
He also told me that knowing how to postpone the reward is an essential part of the success of any trader in the market, because in the face of events where uncertainty prevails, the trader has to learn to control himself and acquire mastery of itself.
In addition, he added that by controlling the anxiety of wanting to win and the fear of not wanting to lose, the trader's perspective becomes clearer, which makes him act better accordingly.
And one more thing that my friend explained to me about learning to postpone reward in the markets, is the fact that to do it is essential, since success in any field requires time, adaptation and understanding. Which means that we need to develop a vision in the market and this vision is given only by the experience that we can acquire by trading ourselves.
The truth is that I am not an expert trader, I barely do some cryptocurrency operations here and there, but I do not consider myself a trader, much less an expert in the matter; but I will always remember in my head the words of my friend; Because over the years, and with each move that happens in the markets, I realize that he was very right in affirming all what he told me.
