I just realized an interesting thing about trading psychology. In Buddhism, there is the concept of the five poisons of the mind, and it fits very well with what happens in the crypto market. Greed, anger, delusion, arrogance, and doubt—what are they? These are the five that I see constantly appearing in traders around me.

First is greed. When prices start rising, everyone is afraid of missing the peak, so they want to buy more, hold on, hoping for higher profits. This greed causes many people not to know when to sell.

Second is anger. This is the worst during the early stage of a bull market. When faced with price pullbacks, people become furious, curse analysts, and hurriedly cut losses to sell off. I see many people being driven by emotions at this point.

Delusion is the third, meaning lack of knowledge, unwilling to learn. Many enter the market without understanding anything, just following others’ stories and investing money.

Arrogance is looking down on others, thinking that they are smarter than the market. This is also very dangerous.

Finally, doubt. What are greed, anger, delusion, and arrogance if not including doubt? It makes people indecisive, hesitant to enter or not, then regret afterward. This is probably the most difficult poison to escape from.

I realize that if you cannot eliminate these five, it will be very hard to survive until the later stages of a bull market. So next time you trade, try to be aware of these emotions and control them. That is the true key.