Two fundamental emotions move the market of cryptocurrencies:

The enthusiasm that rises with every positive news and the panic that takes hold of investors when adverse rumors come. No matter the prognosis of the technical analysis, any unforeseen event that breaks the hopes of many can always occur. Especially those who have just arrived in this market, who expect huge returns in a short time, who want to play here as if they were in the casino, the so-called weak hands or loose hands that come to the market with fear and live prey to it. His emotions reflect the familiar graphics of the market that goes up and down at will, without us being able to do anything about it.

As an example, we can remember the weeks of the end of 2017, a time of great enthusiasm. The progress of the entire crypto market seemed unstoppable, reaching a market capitalization of over 800 billion dollars. Such was the euphoria and enthusiasm that some people ventured to predict that the time of the banks was over, that the big capitals were going to change hands and finally the world freed itself from the "tyranny of its governments" because now everything is decentralize. Typical vintage thoughts of enthusiasm. The purchases were massive.

The first week of 2018 there was still enthusiasm and optimism. From the second week of the year, everything began to change, the mood of the information was transformed: regulations, raids, hacking, scams, money laundering, prohibitions, taxes ... in short, all kinds of rumors, certain and unfounded. Panic seized the market. Many people liquidated their positions in loss because the horizon of thoughts changed: this is a scam, the banks will never let themselves be displaced, the regulations that come will end the cryptocurrencies, the governments will ban them, everything is a manipulation of the big ones Capitals, digital currencies are the apocalyptic mark of the beast that will dominate the market in favor of the "owners of the world" ... Typical thoughts of the panic era. Huge sales and losses.

The key to emotional control

Being professional in this market suggests going beyond the immediate emotions of panic and enthusiasm, taking distance and reading the situations and interpretations that the market is doing, to take advantage. The market becomes predictable, among other factors, by these emotional components, however we can only interpret correctly and take advantage of the information if we "take distance" from the emotion.

I explain it easier with an example: when you see a conflict at work, your interpretation is different if you are part of the conflict and you are angry, frustrated or disillusioned, if you are on the sidelines and you are only a spectator of the conflict between your colleagues. There the emotion is on the margin, looking from outside you can be more objective in your judgments, to see things that those involved do not see, you can use all your resources, knowledge and elements.

The question is how to achieve this state? How to be an observer of the market in which you are participating? How to make decisions with full capacity, mocking the emotional sabotage?

The answer is to learn to dissociate and activate your observer. It is a training through a simple mental game that puts you in a different place, it puts you out of the scene, you change the emotion. This exercise practiced recurrently, can help you activate your observer and take away from the emotions of the moment:

While you are doing your interpretation of the market, Imagine a large television where you can see everything that happens in the place where you are, as if it were a movie you are watching, where you are the protagonist ... you can see the computer in front, see the graphics of the trading and notice how you react to the movements of the market. You can see everything that happens to that character (who is you), see their reactions, the way the emotion runs through it, the type of thoughts it has, the evaluations it makes and the courses of action it projects. Do not judge him, just watch him for a moment, contemplate his enthusiasms and panics, his fears, his hopes and the power of his motivations. Do it for a moment and then, go back to your tasks ... you will have a new perspective, a new look.

Train your mind to dissociate, to get out of emotional conflict and see from the outside market situations, so you will be freer and therefore more prepared to make better decisions.