Every decision you make during trading is actually driven by emotions.

Fear and greed, these two emotions lurk like ghosts in every trader's heart. Once they take control, the results are often either reckless risking or panic selling—both of which can wipe out your entire account.

Many people think that as long as their technical analysis is excellent and their fundamental research is thorough, they can achieve consistent profits. But reality often proves otherwise: even if your analytical skills are top-notch, if your mindset isn't strong enough and you're easily driven by emotions, your account will still gradually head towards the abyss. Especially in the crazy battlefield of cryptocurrency with its wild swings, poor psychological resilience can be ruthlessly crushed by the market.

What is trading psychology? Simply put, it’s the irrational mental activities that occur during your buy and sell decisions. Emotions directly influence when you choose to buy and when to sell.

What do you do when greedy? Watching a certain coin’s price soar all the way up, you impulsively chase at the high, not thinking about the risks at all. When afraid? Seeing a decline, you panic and rush to exit early, missing the rebound. There’s also a feeling called FOMO—fear of missing out—seeing others making money makes your mindset explode, impulsively entering the market without logic.

Honestly, all traders cannot escape the grip of emotions. Who doesn’t feel distressed when losing money? Who isn’t excited when making profits? It’s human instinct.

So why is it important to recognize your emotional changes? Because it directly determines whether you make money or lose. Fear can make you overly conservative, watching opportunities slip away. Greed can make you lose control, risking your entire account. Both extremes can ruin your trading plan.