Motivation in Trading
greed

Motivation in Trading

By Sergei Nemetz | CryptoPsychology | 19 Oct 2020


I get no kick from champagne. Mere alcohol doesn't thrill me at all.

C. Porter

 

As you might expect from a blog talking about digital gold, I will start with the most obvious motivators of love, compassion and self-actualization. It is important to talk about these three up first - because none of them is the major driving force behind the vast majority of crypto trades.

Arguably, the most common drivers behind a trading speculator are :

GREED

FEAR

NEED

ADVENTURE


GREED and FEAR : Greed and fear as drivers behind speculative trading have been well researched and broadly written on. Look no furhter than the famous and infamous greed vs fear index displayed on so many stock tracking pages (and so oddly missing from crypto tracking pages). Fear fared a bit better where it got incorporated in crypto slang as FOMO. However, greed, despite being the main crypto motivator, remains crypto sphere's most avoided taboo word.

NEED : Pressing economic need to provide our daily food and shelter does not get much discussed either. However, it is impossible to disregard the fact that the digital democracy of crypto opened up ways to access the global speculation markets to billions of people in under-banked countries. Countries often torn with devastating rates of inflation, extreme wealth distribution inequality and untreatable social injustice. No wonder a large number of speculators in the crypto sphere come from exactly these countries. In this respect, crypto assets added to the globalization (but also democratization) of world economy.

ADVENTURE : Adventure, the adrenaline seeking factor, may well be one of the 'top 3' on the main motivators list. Depending on where you come from, it could rank as your top reason to be here. If you come from one of the privileged rich countries, with vast social support network (that will catch you when you fall) it is quite viable that since you are not dependent on crypto as your income source and you have already been given the newest model of iPhone last Christmas, you are not driven by greed or need, but dominantly by seeking some late night excitement.

 

An interesting thing is that hardly any speculating trader will be driven by only one motivator. Most of the crypto traders I know seem to be driven by a varied mix of greed and adventure seeking. This particular mix is probably reflecting the environment we are living in - fear and need have been practically removed from lives of most Westerners living in large urban areas.

 

If you happened to have read this piece to this point, I will love to hear which motivators you think are driving YOUR trading. Any of the four discussed above, or maybe something else?

 

 

top image attribution: glodi miessi via unsplash

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Sergei Nemetz
Sergei Nemetz

I am a professional trader and a licensed stock broker. I retired early to travel and follow my burning passions. When my travels and passions burned big holes in my pockets, I returned to trading. Today I trade mostly gold and digital pseudo assets.


CryptoPsychology
CryptoPsychology

Blog about psychology of trading blockchain assets.

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