$BOB Trading psychology: when to accept that the train has already left $BTC $ETH

Suddenly, a chart shows that a coin you were thinking of investing in has skyrocketed. Two big green candles confirm this and there is the illusion that they are going to the clouds. One more candle is forming and it is also green. The instinct screams that it’s better to get on that train now! You rush to buy before the price goes up even more and every cent seems precious...

But, as soon as you buy, depositing all your hopes in that sublime moment of having entered the club of the big green candles, the price starts to fall, the candle turns red and you begin to see how the dream of winning fades away. What was the mistake?

In some recent classes, one of my tutors said the phrase: “We don’t buy green candles.” It seemed extreme to me. But only when the emotion that drives the purchase at the peak is eliminated do we remember that the first basic rule of any market is “buy low and sell high.” So, why do we see two, three green candles telling us that the price has already risen what it should and we should buy?

Yes, I know it can rise a little more, but almost always the following candles are shorter or are interspersed with some red indication before resuming the rise, signs of exhaustion. Even so, it is believed that there is still something left to rise without accepting that the train has already left.

So, the best thing to do is to wish good luck to the passengers who arrived on time and waited for the next train.

Now: if this thing of buying when the momentum is already several points above and the price falls right after happens to you again (and it will happen until you learn), don’t blame the forces of darkness or the exchange. You can remember, beforehand, that nothing goes up forever, that the nature of the market is one of impulses and regressions and that, fortunately for everyone, new opportunities arise from time to time... or, as I said before: after one train comes another. You just have to wait.

What to expect? That the regression begins... when it starts to go down, contemplate the fall (of course there are analyses to be made, indicators that can announce a next trend change and can indicate a better entry and it will not be at the top of the rise) and start investing, now calmly, in the decline... #psychology #TradingTopics #ReboundRally