Risk Management

Written by
Michael Ross
Feb 10, 2025
1 min read
Trading Psychology: Mastering FOMO and Fear
Technical skills account for 20% of trading success. Psychology accounts for 80%. Even the best strategy fails if the human pilot panics.
The Two Great Enemies
1. FOMO (Fear Of Missing Out)
- Symptom: Buying a coin because it's up 50% today.
- Result: Buying the top.
- Cure: Automated Entry. Let your Strategy Bot decide the entry price. If the bus missed you, wait for the next bus.
2. FUD (Fear, Uncertainty, Doubt)
- Symptom: Selling everything because Twitter says "Crypto is dead."
- Result: Selling the bottom.
- Cure: Data Reliance. Look at On-Chain metrics. Is the network dying? Or is it just price noise?
The AI Solution
AI has no emotions. It doesn't get tired, angry, or euphoric.
- It executes the Stop Loss when you would hesitate.
- It takes Profit when you would get greedy.
By using TradingMaster AI, you are effectively "outsourcing" your psychology to a disciplined machine.
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