Greed in the crypto market is one of the most prominent negative emotions that lead to irrational trading decisions, often resulting in significant losses.
How does greed manifest in the cryptocurrency market?
1. Holding On Too Long (HODL):
Waiting in hopes of greater profits even after achieving a good gain, which may lead to losing all the profits.
2. Late Entry into a "Speculative" Coin (FOMO - Fear of Missing Out):
Buying a coin after a strong rise out of fear of missing the opportunity, often at the peak price.
3. Not Taking Profits:
Delaying profit-taking driven by "it could go up more", followed by a price crash.
4. Overleveraging:
Using high leverage with the aim of making huge profits quickly, which may lead to account liquidation.
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Tips for controlling greed:
Set profit and loss targets in advance (Take Profit / Stop Loss).
Don't enter a trade just because it's a "trend".
Stick to a written and well-thought-out strategy.
Divide your capital and don't risk everything in a single trade.
Take partial profits gradually.