FOMO — the Fear of Missing Out, biggest psychological mistake in crypto.
FOMO leads to 2 specific mistakes: taking on more trades and opening bigger positions than your system dictates.
Pure fear (loss aversion) — it’s when a trader is so scared of losing money that they fail to notice and execute on trades.
Revenge trading — this is when a trader gives too much weight to recent statistics while disregarding older ones.
Gambler’s fallacy — this is a way of thinking that takes trading from being systematic and profitable to being a gamble with unpredictable results.