Beware of market sentiment: the fatal risks behind greed and fear!

1. Greed: Behind impulse is a deep trap

When the market is in a bull market, investors' greed will be extremely amplified, especially when the price of the currency continues to rise, many people will have the illusion of "forever rising". This emotion leads to the phenomenon of blindly following the trend, and everyone increases their positions, regardless of asset allocation and risk control.

Once, I also experienced the "climax" of the market surge. At that time, BTC and ETH soared all the way, and the market atmosphere was enthusiastic. I couldn't help but increase my position significantly, thinking about rising more. But in the end, the market adjustment came unexpectedly, and my investment suffered a huge retracement and suffered heavy losses. This lesson taught me that greed is the most dangerous emotion, which can easily make you lose your mind, resulting in excessive positions and uncontrolled risks.

2. Fear: Behind the sell-off is extreme pain

In contrast to greed, when the market turns into a bear market or a sharp retracement occurs, fear will spread instantly. Investors panicked and sold, thinking that the market had no hope of rebounding. This kind of emotional "cut-meat" often causes investors to sell their assets at the lowest point and miss the opportunity to rebound.

I have also experienced a panic "cut-meat". At that time, the market plummeted and fear swept over. I saw that the losses in my account continued to increase, and the pressure was huge, so I finally chose to liquidate. A few months later, the market rebounded, and I not only missed the opportunity to rebound, but also lost the wealth I once had. This made me deeply realize that fear and blind selling are the enemies of investment, which often make you sell at the lowest point and leave a lifetime of regret.

3. The fatal risk behind emotional fluctuations

Whether it is greed or fear, they all come from investors' overreaction to short-term market fluctuations. Emotional fluctuations often make us lose our rationality and make irrational decisions, which are likely to bring fatal risks-missing the gains of the big bull market, or being deeply trapped in the big drop.

Therefore, learning to control emotions is a skill that every investor must master. When facing greed, stay calm, diversify risks, and don't blindly chase the rise; when facing fear, stick to the strategy, maintain a long-term perspective, and don't easily cut meat.