The January 2023 market opened with huge green candles, 100x gems, and YouTube thumbnails with what I affectionately call - XX MOON FACES!

Does that mean we have reached the bottom? 

Maybe or maybe not; bottoms and tops, for that matter, are only known in hindsight; we may get the feeling the market is turning, especially if you are on Twitter a lot; at the top, we had these crazy hundred-to-five thousand times trades. Photos circulating with massive profits and percentages. Guaranteed only a few of these traders took the profits; they've probably HODLed strong while watching the zeros disappear from their portfolio. For those traders, if you were wondering maybe next time when you should sell… There is a saying to live by - the moment you show your friends, your mum/dad, your wife/husband, your Twitter followers your profits, it's time to sell. 

Bottoms are hard to gauge, there are many ideas of accumulation and sideways trading being the bottom, but for me, capitulation is usually the very bottom. We got this with the FTX drama. Bitcoin also runs on a four-year cycle, and so far, we are following the cycle to a tee with this January bounce. 

FORGET TOPS AND BOTTOMS

Let's talk about Trading psychology… mindset plays a crucial role in a trader's success. It's essential to be aware of your emotions and how they can impact your decision-making. 

https://alternative.me/crypto/fear-and-greed-index/

Fear and greed are two emotions that can be particularly detrimental to a trader's success. Fear can cause a trader to sell at a loss (or bottom), while greed can cause a trader to hold on to a losing position for too long (or miss the top entirely). To be successful, it's crucial to have a clear trading plan and stick to it rather than making impulsive decisions based on emotions. It's also essential to take a break when emotions run high and avoid over-trading. Additionally, having a good understanding of one's own biases and being able to manage them is crucial for maintaining a clear mindset while trading.

STOP FEAR AND GREED WITH THIS TIP 

Taking regular profits is an important aspect of trading. It helps to lock in gains and reduce the risk of losing all your profits if the market suddenly turns against you. (Especially if you're a margin/leverage trader) A common strategy is to set a profit target and a stop-loss simultaneously; this is also known as an OCO - one cancels the other order. Using both a profit target and a stop-loss, you can ensure that you are taking regular profits while limiting your potential losses.

FULL ARTICLE 👇

https://themoonmag.com/issue-18/