"What to do. I'm scared to buy in the current market 😨 Everything is falling".
Or "I feel sorry to fix profits in a growing market!".
I am not often approached with such questions, but the topic is relevant for each of us. Why does it happen like this and how to use it for your benefit?
❗️ First of all, you are not alone. The market is experiencing the same emotions. This is what pushes prices in one direction or the other.
People get greedy when the market goes up - this leads to FOMO. Also, people often sell their coins in an irrational reaction to red asset numbers.
A more complex formula takes everything into account - the "fear and greed" index.
The "fear and greed" index is designed to relieve users of emotional stress. It analyzes the current market mood, which is represented as a simple number from 0 (extreme fear) to 100 (extreme greed).
- Extreme fear - caused by a persistent and severe market decline. Can be a sign that investors are overly concerned. And as we know, when everyone is scared, it's a good opportunity to buy an asset.
- Extreme greed - caused by a persistent and strong market rise, and the index indicates a necessary correction. Hence, when everyone is greedy all around, it is a good time to sell.
Use this index correctly and do not give in to emotions!
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