Crypto Beginner's Psychological Rules Guide: Managing Emotions, Trading Narratives
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Crypto Beginner's Psychological Rules Guide: Managing Emotions, Trading Narratives
If you're new to Crypto/Web3, here are 5 important psychological rules to follow.
Navigating Web3 tides with focused insightsWritten by: Kyle
Translation: TechFlow intern
If you're new to Crypto/Web3, here are 5 important psychological rules to follow. This list isn't exhaustive, but if you can apply them well, I believe they'll help improve your market trading.
Rule 1: Take Responsibility for Yourself
Focus on yourself, trust only yourself, and take full responsibility for your successes and failures.
Everyone has their own bias when sharing information. If many people are talking about a certain coin, remember—they likely bought it at a lower price than you did.
"But what about those who claim to have a 90% win rate in trading?"
Understand that markets are random—no one can predict the next move.That win rate can change instantly. And remember, there's no such thing as a free lunch in life.
Therefore, maintaining personal accountability is crucial. When you face problems or lose money, don’t blame anyone else—blame only yourself for not doing enough research. Only then can you begin to truly learn.
Rule 2: Control Your Emotions
Easier said than done. My edge lies not in technical skills, but in separating my emotions from trading decisions.
When your NFT’s price is dropping but you hesitate to sell because you want to hold it like a diamond? My advice: sell.
When your token surges and you’re ecstatic, yet still reluctant to sell because you think it’ll double again? My advice: sell it.
This is important. If you can’t remember or act on this advice, take a screenshot now.
Whenever you feel the urge to check that screenshot, sell instead. Buy back in only when you fear the price might drop to zero. Acting against your emotions will greatly benefit your trading journey.
Rule 3: Stay Steady Amidst Change
Once you’ve researched a coin and decided to buy, avoid frequently changing your position. Minimize choices to reduce mistakes.Conviction is an advantage. The more often you shift your positions, the higher your chance of error.
Of course, this ties closely to FOMO. When you see someone make 1000x on an NFT, you want in. Or when you see a token surge 1000x while you’re stuck in NFTs. You feel you’ve missed out and rush headfirst into another sector.
When you feel this way, immediately close your trading app, calm down, and remind yourself not to let it enter your mind. Sounds silly, but it works. In crypto, HODLing often beats most traders. Unless you’re highly confident in your next move, don’t switch positions easily.
Rule 4: Always Assume You’re Wrong
Every morning, check the price. Assume today’s current price is your entry point. For example, if you bought a token at $1 and it’s now $10, pretend your entry was at $10. Would you still buy in at $10? If not, sell. If yes, ask yourself why.
Is it due to risk-reward ratio, or just FOMO? These are factors you must consider. Doing so balances your mindset and sharpens your thinking.
Rule 5: Self-Analysis
After every good or bad trade, analyze it with yourself.Understand why you acted that way, so you can learn to avoid or repeat such behavior in the future. Over time, this becomes subconscious.
Write down your conclusions and stick to them. Record lessons and mistakes deeply within your mind. At its core, investing is a PVP game—but your greatest enemy is yourself. "Yourself" is essentially the sum of all thoughts in your mind, constantly attacking you. Bad thoughts = bad process = bad trades.
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