Greed. This is a common challenge for traders, especially after closing a trade with a profit, only to see the market keep rising. It can feel like the trade was closed too early, that there was potential to earn more. This often leads to self-doubt and the urge to re-enter, despite basic trading principles advising against it—especially when the price is already at a peak.
Typically, peak prices hold for only a few days, and the missed profit potential might be around 3-10%. It’s challenging to resist entering trades at these highs, particularly when prices reach all-time highs (ATH). But it’s essential to keep a cool head and remember that buying at a peak carries a high risk of capital loss. Often, prices pull back before any new growth, offering better entry opportunities later.
Stay grounded in the fundamentals, avoid giving in to destructive emotions, and act logically and consistently.
