Before throwing a big chunk of your money into the market right now, take a breather and look at the bigger picture.
As of today, the Crypto Fear & Greed Index is at 71, which clearly signals “Greed.” That means a lot of people are feeling overly confident — and that usually leads to overpriced assets. Historically, this is where seasoned traders start locking in profits, not jumping in with fresh investments.
If you’re already in the market, this could be a good time to secure some gains rather than expanding your positions.
Here’s a smart way to think about allocating your funds based on market sentiment:
Greed (Index 61–75):
Stay cautious. Don’t invest more than 15% of your available funds. Be picky.
Neutral (Index 46–60):
You can get a bit more active — consider putting in 20–25%. The risk/reward is more balanced here.
Fear (Index 31–45):
This is when good deals start showing up. Think about investing another 20%.
Extreme Fear (Index 0–30):
Time to get serious — this is where long-term opportunities live. You can use up to 40% of your funds.
Extreme Greed (Index above 75):
Avoid making new investments. Things are usually too hot and corrections are likely.
Why this works:
It helps you avoid chasing hype and instead buy low and sell high — the exact opposite of what emotional traders often do. Plus, it spreads your risk across different market conditions.
Platforms like Binance stress the importance of risk management and emotional control — and for good reason. Sticking to a plan like this helps you stay calm and make smarter moves.
Bottom line:
Don’t get caught up in hype or FOMO. Follow a strategy that’s based on logic, not emotion.
Stay patient, protect your capital, and trade smart.
Wishing you safe and steady gains ahead!
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