#TradingPsychology When the market is in panic (prices drop sharply), many people sell off out of fear → it is an opportunity to buy at a good price.

When the market is euphoric, everyone pours money in (FOMO) → that is when the risk is high, so consider taking profits.

Application to crypto:

Investor sentiment has a significant impact on price volatility.

Use the Fear & Greed Index to determine reasonable entry/exit points.