Morrin

⚠️ PSYCHOLOGICAL THINKING ⚠️ Psychological thinking is essential in trading because data, charts and fundamentals do not just drive financial markets, but they are also deeply influenced by human behaviour 🧠. Every decision made in the market, whether by an individual retail investor or a large institution, is ultimately a human decision shaped by perception, emotion and cognitive bias. Trading and investing involve navigating through uncertainty, fast-paced information and high-stakes choices, which can trigger strong psychological responses. Without an understanding of how the mind works under pressure, such as fear, greed, overconfidence or hesitation, even traders with a solid TA strategy can make irrational decisions. You are playing a psychological game which is run by algorithms and liquidity. You will be controlled until you master your emotions. To master your emotions, I recommend that you read "The Mental Game of Trading" and "Trading in the Zone" to understand the way the mind processes under pressure in the trading markets and general psychology 🧠. Up to 80% of all financial markets are run by algorithms, meaning you have to act like a robot to win alongside the whales. Emotionless. Never let your emotions change your initial plan, as they will only lead you down the path of failure. 90% Psychological thinking 10% Technical analysis Once you have mastered your psychological thoughts, it will become your foundation, as you are no longer heavily influenced externally. The only thing left to do is to refine your TA skills over the upcoming years. Then there will be no barriers to hold you back from reaching your goal. Even if you can read the market, but still have poor psychology, you will most likely end up unprofitable. At best, break even. Keep in mind that the trading game is probabilistic; not every trade setup has a 100% certainty. To save me time of rewriting, you should have a read of NC's post as it will widen your thoughts on how the game should be looked at 👉 x.com/_MaxO22_/status/193203… Greed is dangerous in trading because it hinders rational thinking, which can lead to irrational decisions and uncontrolled risks. It often causes traders to over-risk or chase every opportunity, even when the setup is no longer valid or when the price has been parabolic for a long time. This is poor risk management. You can read about risk management in my educational post here 👉 x.com/CryptoChase02/status/1… Traders driven by greed may hold onto losing trades for too long as they struggle to accept a loss or refuse to take profits on winning trades as they think the price will go even higher, only to then watch gains disappear as they hope for the market to recover [which they do get and still never sell 😶]. Greed tends to intensify when the asset has seen a huge increase in price over a couple of months and when price action approaches a HTF bearish key level [Macro/local tops], but retail will never sell at such opportunities due to extreme FOMO. Scared to turn unrealised profits into realised profits. Greedy traders will often jump into the markets late at the worst price levels because they see others profiting. Always aim to buy low and sell high. If you feel late to the party, then wait for the next opportunity elsewhere [Discount zone]. Play with no greed, and those failures will never be expensive. Don't chase quick riches! When entering this field, only risk what you are willing to lose. Greed will make you overinvest money in the market when it could be needed for bills or other necessities 📜 You should always stick to your initial plan and take profits as the price increases/decreases. If you are currently recovering losses, your main plan should be to recover what you initially invested and then secure profits. Many people are in a loss and still aim for insane targets that will never be hit. If you get a 50% gain or higher on a mid/short-term position and pay it all [or most] back, then you're still probably being too greedy. Whales will keep greed at max levels to prevent you from securing those profitable trades, so they can make their big moves. You will tend to hear about positivity, such as large buy orders from 🐳's, regulations being lifted, Country/bank involvement and more at optimal HTF bearish key levels. There's a lot of money to be made in the markets if you know what you're doing, have patience and aren't greedy 💰 On the other hand, fear is just as bad because it leads to hesitation, poor decision-making and missed opportunities. When traders operate out of fear, they will often avoid taking valid setups even when their analysis is correct. This hesitation will cause you to enter trades too late, exit too early or avoid correct decisions altogether, limiting your profit potential. Fear tends to intensify when the asset has seen a huge decrease in price over a couple of months and when price action approaches a HTF bullish key level [Macro/local bottoms], but retail will never buy at such opportunities due to extreme fear. The fear shuts down the part of your brain designed to solve problems. Whales will keep fear at max levels to paralyse you to enter such profitable trades, so they can make their big moves. You will tend to hear about negativity, such as war, pandemics, recessions and more at optimal bullish HTF key levels. Fear will make you cut winning trades prematurely, as you are afraid the market will reverse. Instead of letting profits run with a trailing SL after partial profits, you will leave gains on the table due to cutting early. Fear can also make you hold onto losing trades for too long, hoping to avoid locking in a loss, which can often result in even bigger losses. If your friends have a poor mindset and are scared to take risks, then you should probably find new friends. It's the hard truth that stops most people from reaching their full potential while they continue to procrastinate. Any opportunity you find, they'll tell you a reason why not to do it, creating that never-ending doubt and uncertainty in your mind, which results in pure fear. The fear of trying something new. The fear of making mistakes. The fear of losing money. Their fearful thoughts will spread to you. Don't be scared to invest in yourself, whether it's money or time. Reading this, you now realise how powerful external thoughts can express and intensify your emotions. Cut the fear of failure and trust the process, and you'll make it. MoneyTaur talking about poor mindset within the markets 👉 x.com/Moneytaur_/status/1677… MoneyTaur talking about consistency 👉 x.com/Moneytaur_/status/1662… As you can see, both strong psychological responses can lead you to abandon your strategy, ignore your risk management rules and create financial pressure. Always second-guessing yourself, overanalysing and a lack of confidence to stick with a consistent approach. This inconsistency breaks discipline and turns trading into an emotional rollercoaster🎢. FOMO-only [Positive news] at market tops FUD-only [Negative news] at market bottoms Your fear & greed emotions are two of the most powerful indicators you will ever find ‼️ Always evaluate your fear and greed levels, or you will stay blind in this market 👁️ The key to mastering your psychology lies in focusing on just one thing: the percentage of risk you're placing on each position. How much you've invested, what you've gained or lost, and even your account balance are irrelevant. Letting go of those figures helps you gain emotional control. By distracting yourself from the monetary side of trading, you start to think more clearly and react less emotionally. This detachment becomes your strongest mental edge in trading. Whether a trade wins or loses, your mindset stays the same - calm, objective and consistent. There's no need to make it back as quickly as possible after a loss. There's no need to jump straight back into the market after a win. No more impulsive decisions, as you are sticking to your system with discipline. People who tend to follow a strict routine in any field tend to show strong discipline. This is why you see fascinating results from those people. To you, it will seem "quick", but the truth is they played the long game and waited for success to naturally follow 🛣️ If you're a trader with smaller capital, you will most likely fall into the trap of chasing massive returns, which is very common due to accounts with a huge following showing ridiculously high returns. It is not 2021 anymore; it is highly unlikely you will experience those types of gains unless you have insider information or are just plain lucky 🎲. Instead, you should be thinking like the whales with huge amounts of capital who understand consistent gains. They can consistently profit off 10%, 50% or 100% moves. These numbers are responsibly achievable. They're not chasing results but are focused on execution and accuracy. Stay focused on the technical aspect when placing a TP level or a SL. The R/R is the only thing that should matter, not the dollar amount ‼️ Once your mindset is in the right place, the need for specific outcomes fades away. You stop trading for the money and start trading with a process while embracing mistakes to learn from them. That's when the results start to follow naturally. The market is always available 24/7. There will always be opportunities to make money elsewhere, so don't be so fixated on one pair if the R/R is weakening. You have to be patient, as the main objective is to wait for a key level to be reached [High R/R setups]. Select a few high-volume assets to analyse [whatever amount is comfortable]. Regularly monitor those assets, update and invalidate when your criteria are no longer met. Don't fall into the trap of overanalysing lots of pairs due to slow triggers. Also, make sure to set your alerts at a reasonable position to recheck your setups as PA approaches your key level, with a clear title of what type of trade it is to avoid confusion. In a full-blown bull market, you should be sitting and enjoying the wave while having realistic targets. No wishful thinking ‼️ Narrative Validation + Positioning of the Market Whales will often use well-known narratives to intensify emotions during crucial times. They will often talk about these narratives at optimal HTF key levels. Often, they are used for reverse psychology 🔄🧠. They will talk about negative narratives to add fear into the market to stop you from thinking about buying at discount levels, and talk about positive narratives to add greed into the market to stop you from thinking about selling at premium levels. Here's the flip side to it to show how they have full control of the situation. Once they feel like retail has cracked the code, they'll start telling the truth to build back the trust. Meaning they might use positive narratives/keywords at discount levels or negative narratives/keywords at premium levels. This is all part of the game, showing you that they can turn the switch whenever they want to. Once they feel the trust, back to 🔄🧠. Once they feel the distrust, back to telling the truth. This will be a continuous cycle for many years to come. Market manipulation will always exist because people can not control their fear or greed levels. How do we see past such lies or truth? The key is to identify the positioning of the market. How long have we had continuous upside or downside? Are we in extreme discount or extreme premium? Did we just hit an optimal bullish HTF key level or a bearish one? Did we just break past a key PSH or PSL with confirmation? What are the current emotions you feel and can see from others in the current position? These are the types of questions that you need to answer to identify the true meaning of the cryptic messages they release on social media. Understanding this will help you decipher the code to see if they are simply adding ⛽️ to the 🔥 or using 🔄🧠. If whales are using a negative narrative and price action is hitting an optimal bullish HTF key level in the extreme discount zone, I assume 🔄🧠 If whales are using a positive narrative and price action is hitting an optimal bearish HTF key level in the extreme premium zone, I assume 🔄🧠 If whales are using a negative narrative and price action is hitting an optimal bearish HTF key level in the extreme premium zone, I assume ⛽️🔥 If whales are using a positive narrative and price action is hitting an optimal bullish HTF key level in the extreme discount zone, I assume ⛽️🔥 Also, at the macro/local tops or bottoms, you will most likely not see a mixture of positivity and negativity; it will be one or the other [One side will be heavily dominated]. Like I said before, whales will often use 🔄🧠 because it's too easy to intensify greed when prices are high and fear when prices are low. These are the strong responses that will stop you from thinking from a rational perspective. An example of adding ⛽️ to the 🔥 would be talking about a hack at an optimal bearish HTF key level, or maybe talking about the bitcoin halving at an optimal HTF bullish key level. An example of 🔄🧠 would be talking about the Titanic at an optimal bullish HTF key level, or Michael Saylor talking about buying huge amounts of Bitcoin at an optimal HTF bearish key level, or in extreme premium. Firstly, consider what PA is currently doing and where it stands in its HTF range. Then identify the type of emotion you feel and from others. It will most likely be greed or fear [Do not force it, you'll naturally feel these emotions when they arise]. Sentiment on X is quite good to understand if a reversal [bullish or bearish] is imminent or not. Then think about the narratives that could form around the specific coin or the market as a whole. ▫️If it's about Bitcoin, you might see talk about moon phases, the Bitcoin-halving or large orders from whales. ▫️ If it's a specific coin, such as a DeFi or AI coin, then it might be hack-related or real-life advancements in artificial intelligence. ▫️ If it's about a RWA coin, then it might be news related to banks or other high institutions talking about digital assets. ▫️ If it's about a gaming coin, you might want to look out for big companies that are tied to gaming and how they're talking about gaming and crypto co-existing through NFTs. ▫️ If it's about oil, you might want to look out for worldwide news, such as [pre/post] war, supply-chain effects, green energy, etc. There are many more examples, but you get the main idea that I'm trying to portray. Think from a big perspective that could evolve everyone. Whales can sway public opinion and create narratives that best suit their interests while trying to keep the dream alive for retail investors so they HODL into death spirals 🩸. Always look at the bigger picture when trying to relate narratives to price action. What are the 🐳's truly trying to hide from retail players? Here's the most recent example I could think of that I posted, which involved large selling, the Titanic and Elon showing hints of a powerful push to the upside👉 x.com/CryptoChase02/status/1… Narrative validation should always be used from a macro perspective [HTF]! Using it constantly on lower timeframes will most likely make you fall into analysis paralysis! Narrative Runs The market is not like 2021 anymore, where you see everything pump in large percentages. Instead, you will most likely see specific narratives pumped at certain points in the cycle. For example, it may be memes at the beginning, then NFT/Gaming/AI in the middle and green energy coins at the end. Certain narratives will do more X's than others at certain points in a cycle [Likely to be the narratives that aren't currently talked about]. As the market evolves, new narratives and related coins will emerge in the market. I would only suspect an everything-pump season if another stimulus check was given out after a serious global issue [Free money given to the public to spend]. If you hear about a narrative late and see large percentages already made within the narrative, it's best you look elsewhere to find a better opportunity. The risk-to-reward ratio will be terrible if you continue to seek within the same narrative which has already been pumped. Whales will continue to hype that chosen narrative and dump their bags while retail buy into their large sell orders. Don't hate the player 🧍, hate the game 🎮 You can go to CoinMarketCap and look at the different types of coins for certain narratives. I would personally look at the High MC coins with good trading volume. CMC 👉 coinmarketcap.com MoneyTaur - "Runs will be by narrative rather than everything-pump. Look for narratives that will gain traction" MoneyTaur - "Be emotionless. Be Smart. Don't be greedy" MoneyTaur motivation 👉 x.com/Moneytaur_/status/1633… Be fearful when others are greedy. Be greedy when others are fearful. Many will overlook this post because it's not interesting, but in reality, this is the key piece to the puzzle that can help you become profitable. I try to make these topics as friendly as possible, and it does take some time out of my day, so if you want me to provide more educational posts, please like and repost so they can reach more people 🙏 If you have any questions, put them in the comments below 👇