A rapid BTC and SOL uptrend worries me for my behaviour.
For me as a swing trader, it's the first time I am dealing with uncomfortable emotions while the uptrend is remarkable going on and on... My thoughts are dealing with a mix of unbelief and trust issues. For all those traders with similar awareness, I put a list together of psychologic behaviour I have to deal with right now (12th of March 2024). I have decided to wait for selling due to all these in the list below.
1. FOMO (Fear of Missing Out): When prices are rising quickly, there's a tendency to fear missing out on potential profits, leading to impulsive buying decisions.
2. Overconfidence: Success in a rising market can lead to overconfidence, causing traders to take on excessive risk or neglect proper risk management strategies.
3. Herd Mentality: Traders may feel pressured to follow the crowd, leading to crowded trades and increased volatility.
4. Confirmation Bias: Traders might seek out information that confirms their bullish bias, ignoring or downplaying negative indicators or news.
5. Greedy Behavior: Greed can cloud judgment, causing traders to hold onto positions for too long, even when signs of a reversal or correction are present.
6. Panic Selling: Despite the overall uptrend, sudden dips or corrections can trigger panic selling among traders, exacerbating market volatility.
Being aware of these psychological tendencies can help you stay disciplined, adhere to your trading strategy, and avoid making emotionally driven decisions.
1. FOMO (Fear of Missing Out): When prices are rising quickly, there's a tendency to fear missing out on potential profits, leading to impulsive buying decisions.
2. Overconfidence: Success in a rising market can lead to overconfidence, causing traders to take on excessive risk or neglect proper risk management strategies.
3. Herd Mentality: Traders may feel pressured to follow the crowd, leading to crowded trades and increased volatility.
4. Confirmation Bias: Traders might seek out information that confirms their bullish bias, ignoring or downplaying negative indicators or news.
5. Greedy Behavior: Greed can cloud judgment, causing traders to hold onto positions for too long, even when signs of a reversal or correction are present.
6. Panic Selling: Despite the overall uptrend, sudden dips or corrections can trigger panic selling among traders, exacerbating market volatility.
Being aware of these psychological tendencies can help you stay disciplined, adhere to your trading strategy, and avoid making emotionally driven decisions.