Suddenly, a chart shows that a coin you were thinking of investing in has shot up. Two green elephant candles confirm it, and one has the illusion that they are going to the clouds. Another candle is forming and it is also green. The instinct screams at you that it is better to get on that train now! You hurry to buy before the price goes up more and every penny seems precious...

But, as soon as you buy, putting 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 do not buy on green candles." I thought it was extreme. But, only when the emotion that leads to buying at the peak clears, one remembers that the first basic rule of any market is "buy low and sell high." So why do we see two, three green candles indicating that that price has already risen as much as it should have and we buy?

Yes, I know it can go up a bit more, but almost always the next candles are shorter or interspersed with some red indication before resuming the rise, signs of exhaustion. Still, one believes that there's still a stretch to go up without accepting that that train has already left.

So, the best thing to do is to wish good luck to the passengers who did get on in time and wait for the next train.

Now: if it happens to you again (and it will until you learn) this thing of buying when the impulse has already gone several points up and the price drops right after, do not blame dark forces or the exchange. You can remember, rather, that nothing goes up forever, that the nature of the market is of impulses and pullbacks and that, fortunately for everyone, there are new opportunities every so often... or, as I said before: after one train comes another. You just have to wait.

What to expect? That the pullback begins... when it starts to go down, contemplate the fall (of course, there are analyses to do, indicators that can announce a nearby trend change and can indicate a better entry and this will not be at the peak of a rise) and enter to invest, now with calm, in the pullback...#psicologia #TradingTopics #ReboundRally