Most beginner traders fall into the trap of whales due to the allure of long green candles.
Beware of FOMO (Fear of Missing Out)
Resisting price temptations in trading is one of the toughest psychological challenges traders face, especially when witnessing sharp price movements or seemingly "golden" opportunities. Here are effective steps to help you gain control:
1. Create a clear trading plan
Define your entry point, stop loss, and profit targets before opening any trade.
Stick to the plan, and do not change it based on emotions or sudden news.
2. Rely on analysis, not emotions
Do not enter a trade just because the price is "too low" or "rising sharply."
Use technical analysis tools (like RSI, support, and resistance) to confirm your decision.
3. Determine your risk percentage in advance
Do not risk more than 1-3% of your capital on a single trade.
This protects you from chasing after a trade that could severely harm your portfolio.
Always remember that the decision not to enter a trade is also part of trading decisions