The market always tests human nature, and this test is particularly severe during the heightened fear of missing out (FOMO) emotions.
When the price of $BTC approaches $100,000, investors chasing the price are cheering, while those who missed this wave of momentum are spending their time in anxiety. However, the subsequent market correction puts people in a dilemma between 'chasing high and getting stuck' and 'missing the opportunity for wealth appreciation'. So, in this psychological game, how should we make our choices?
To chase or not to chase?
- Chasing high: Chasing high often comes from the desire for greater returns, but it is also accompanied by the risk of correction, worrying that one will be 'stuck'.
- Not chasing: Choosing to wait for market adjustments may mean missing out on the rapid gains of a bull market, resulting in a larger opportunity cost.
The market repeatedly tells us, **the real challenge is not buying or selling, but how to overcome emotional interference and maintain calm and rationality**.
How to make more rational investment decisions
To escape emotional decision-making, consider the following three key questions:
1. Have the short-term positives already been reflected in the price?
When asset prices rise rapidly, the market has usually digested the good news. At this point, hastily chasing high may mean buying at the market peak.
2. What are the possible negative factors?
Pay attention to macroeconomic conditions, policy changes, and capital flows to assess potential risks. If major negatives are anticipated, it may be wise to wait for a better opportunity to enter the market.
3. What is your own risk tolerance?
Investing is not just about pursuing profits; it is also a test of one's personal risk tolerance. Set a psychological bottom line, clarify stop-loss and take-profit points, and prevent emotional loss of control from leading to poor decisions.
Recognize the market and bear the consequences.
Although everyone may have different views on the market, there is one common point:
- Investment choices are a personal responsibility, and the results are also borne by the individual.
- The market will not accommodate anyone; predicting the tops and bottoms of fluctuations is nearly impossible.
- Staying clear-headed and analyzing rationally is essential to finding one's own investment balance amidst FOMO emotions.
🌟 Investment Proverb
In a bull market, opportunities seem to be everywhere, but the amplification of emotions is often a hidden trap. Truly successful investors are not those who run the fastest, but those who can best control their emotions.
Remember: Investing is not only a game of the market but also a process of self-cultivation.