When should you stop trading? The warning that saves your capital
Trading in crypto is not always golden opportunities 💎 … Sometimes the best trade is to not enter any trade!
Here are the situations where you should be cautious and stay away from the market:
1️⃣ When the market is unclear in direction
Small candles 🕯️ that are volatile.
There is no clear upward or downward trend.
➡️ Here the market is just a "casino", it's better to wait until the trend becomes clear.
2️⃣ After huge and very rapid movements
If the price rises or falls by 20%+ in a short time ⚡️
➡️ This means the market is in a "liquidity trap" and may bounce violently.
3️⃣ Time for big news or announcements from the Fed/banks
News like interest rate hikes or major regulatory decisions 📰
➡️ Sudden movements and wide spreads = potential losses.
4️⃣ When your emotions are in control
If you feel intense fear 😨 or excessive greed 😈
➡️ Your decisions will be emotional and not based on analysis.
⚠️ The golden advice: Don't enter the market just because you feel like you've "missed the train", and don't trade if there isn't a clear plan.
🔑 A smart trader is not one who trades all the time, but one who knows when to stop.