After entering the cryptocurrency trading field, my understanding of market fluctuations has changed dramatically. I used to naively believe that a market rebound was simply an increase. However, after delving into this world, I found that investors' psychological expectations often amplify every subtle movement in the market.

A tiny increase of 1% can be seen as a 'take-off', while stable consolidation may also be interpreted as a signal of an impending explosion. Conversely, a slight decline can trigger panic and be viewed as the beginning of a 'crash'. This extreme psychological fluctuation reflects the high uncertainty of the encryption market and the excessive sensitivity of investors.

In fact, this psychological phenomenon is not limited to the encryption currency market. It reveals the common psychological characteristics of humans when facing high-risk, high-volatility investments. We often overinterpret short-term fluctuations while ignoring long-term trends, and this cognitive bias can lead to irrational investment decisions.

As an investor, it is crucial to remain objective and calm. We need to learn to distinguish between short-term fluctuations and long-term trends, avoiding being swayed by the daily ups and downs of the market. At the same time, establishing a healthy risk management strategy and setting reasonable stop-loss points are also key to maintaining long-term investment success.

This experience has deeply taught me that in the financial markets, psychological factors are often more important than technical analysis. Cultivating a stable mindset and not being affected by short-term fluctuations is essential to achieving long-term success in this market full of opportunities and challenges.