Most people rush into trading hoping to make quick money, without taking the time to learn first. As shown in this image, the line for "Trading" is packed, while the "Learning" counter stands empty. This highlights a common mistake.
Success in trading doesnāt come from luckāit comes from knowledge, experience, and continuous learning. If you truly want to become a successful trader, start by educating yourself. Learning might take time, but it saves you from costly mistakes and builds a strong foundation for long-term growth.
Over time, Iāve come to realize that many traders ignore one of the most effective sentiment tools in crypto ā the Fear & Greed Index. Iāve studied it closely, applied it consistently, and itās helped me stay profitable, even during uncertain market conditions.
Let me break it down with just two simple rules I follow religiously:
š¹ Rule 1: Buy During Fear
When the index shows Fear or Extreme Fear, I consider it a strong buying opportunity. This usually indicates that the market is undervaluing assets out of panic ā an ideal time to enter with confidence.
š¹ Rule 2: Sell During Greed
When the index shifts to Greed or Extreme Greed, I start booking profits or fully exiting positions. These are often the moments when the market is overhyped and overheated.
Even if a trader follows just these two rules with discipline, they can avoid major losses. But thereās one key condition I follow: I only invest in coins that are ranked in the top 10 to 20 on CoinMarketCap (CMC). I personally donāt recommend or guarantee anything for coins ranked below 20.
ā Real-World Example:
My investment in $XLM , currently ranked around #15 in CMC 100, continues to perform well ā even after recent market dips. The reason? I stick to a disciplined Dollar Cost Averaging (DCA) strategy and follow the Fear & Greed Index closely.
Conclusion: Crypto doesnāt have to be chaotic. Sometimes, the simplest tools ā used with consistency ā can give you the best results.