WHEN IN DOUBT, ZOOM OUT.!
How to avoid unnecessary panic when trading?
If you've ever opened a 5-minute chart and saw a red candle that made you think everything is collapsing, you are not alone.
Many traders (especially those who are just starting) tend to react emotionally to sharp movements in low timeframes. What seems like a "collapse" of the price in 15 minutes may just be a small adjustment on the daily chart.
And that 10% drop that made you close everything... sometimes comes after a 30% rise that you didn't pay attention to. We tend to give more importance to drops.
📉 The problem sometimes lies in looking too closely.
Short timeframes amplify market noise.
In 1 or 5-minute candles, any large liquidation, any tweet, or even a simple technical bounce can seem like the beginning of the apocalypse.
This is the point where many panic. They sell poorly. They buy worse. They get frustrated. They doubt their plan.
And the worst: they lose perspective, they start to doubt...
"When in doubt, zoom out" is not just a catchy phrase. It is a mental strategy to regain control.
💡 Do you see a red candle that scares you?
📆 Switch to the 4-hour or daily chart.
🔍 Observe the general context: Is the uptrend still in place? Is it just a correction?
Often, what seemed like a devastating drop is just a normal pullback within a larger movement.
🛠️ What to do when you feel panic:
1. Change the timeframe.
Viewing the daily or weekly chart gives you a better perspective of the market.
2. Review your strategy.
Did you have a plan before entering? Are you acting according to it or according to your emotions?
3. Evaluate the context.
Was there a recent rise? Could this be a profit-taking?
4. Don't make impulsive decisions.
If you are unsure, it’s better to do nothing than to regret it later.
5. Learn to tolerate volatility.
Especially in crypto, where a 10% move in a day is not uncommon.
Remember... When in doubt... Zoom Out