BizHub.cc: What A Scientific | Science, Psychology, Financial, Economic Blog

Since the popularity of crypto, interest in trading & investing has also increased, but as with every business cycle, usually the majority of people just have Fear Of Missing Out and enter too late. This rule is fundamental in every business decision and so often missed as proven by behavioral economics. People make a few simple mistakes when it comes to trading & investing, they sell too early or they sell too late, regardless if a position is profitable or not. Too early can also be too tight of a stop-loss and too late can be simply no stop-loss and a bad exit. Taking this into account, markets are not supply and demand but more like a hype train, sometimes a marketing ploy but definitely not rational and players are emotional, irrational and lack proper risk management strategy. Also, traders, especially in crypto, have horrible diversification, this starts by not seeing the correlations between Bitcoin and the rest of the asset class and the lack of value and liquidity in ...