Ever noticed that after checking your portfolio and feeling shocked as to how much your holdings went up, only to see them crash the next time you open the application?
That’s because all markets and price action are driven by investor emotion and sentiment, especially in speculative assets like cryptocurrencies.
If you find yourself feeling greedy or thinking irrationally in terms of how much money you’ll make, it may be an internal signal that things may soon turn the other way. The same can be said if you are feeling especially fearful after an extreme price collapse.
Learning to trust your gut is an important skill; learning to distrust it at the right moments is even more valuable.
