📊｜Why are so many people always trapped by chasing high prices?
📌Whether in stocks or cryptocurrencies, whether retail investors or experts, they cannot escape being affected by two things, namely greed and fear.
Like at this moment, the market correction BTC and ETH led the various cottages to fall one after another📉, so various doomsday voices began to appear in the market, and everyone opened short positions🈳. The herd effect began to affect people. Everyone was afraid of getting off track and not keeping up with the team rhythm, so they opened short positions in a hurry.
🔻Any friends who have studied should know that it is meaningless to open short positions at this price at this moment to earn the last dollar in the bull market. Everyone knows how high the risk factor is and how low the profit and loss ratio is.
And the most common reason for most people to be trapped is actually nothing more than wanting to follow the trend and make a small short-term profit, but the result is counterproductive, and forget to set a stop loss, and the short-term is forced to become long-term.
♦️So how can we avoid the above situation?
☑️First of all, remember that in extreme market conditions, most herd effects are wrong. You should follow your own trading system instead of looking at others
☑️Summarize the lessons of every failure. There is no natural investment master in the world. Masters also climbed out of the pile of warehouse explosions
☑️You should stick to your own trading plan and not be affected by market sentiment
