#BinanceHODLerDOLO Correct 👌, many market experts believe that a trader's biggest enemies are not the market itself, but fear and greed. Let me clarify:
🔴 Fear
Makes you sell at a loss quickly just because the price dropped.
Prevents you from entering good opportunities out of fear of losing.
Leads to "decision paralysis" → you remain hesitant and do not take action.
Example: The price of Solana drops by 10%, instead of seeing it as a buying opportunity (if your analysis is correct), you fear and sell at a loss.
🟢 Greed
Makes you hold onto a winning position too long until the market reverses and you lose profits.
Causes you to enter positions larger than your capacity (Overleveraging).
Leads you to "FOMO" → you enter late just because the price is rising.
Example: Solana rises by 50%, instead of taking a profit and partially exiting, you say "it will rise more" and stay in, and suddenly the price drops again.
⚖️ How to balance between them?
Set a clear trading plan (goals, stop-loss, risk percentage).
Stick to capital management (do not risk more than 2-5% of your portfolio on a single trade).
Accept that loss is part of trading, and profit and loss are like two teams in a match.
Use greed and fear as contrarian signals:
If the entire market is fearful → it may be a buying opportunity.
If everyone is greedy → beware of a correction.