Above I have listed the multiple stages of a trade. A lot of the time it starts with a great buy, which leads to a logical selling point. Rarely do people go through with this. Why? because humans are full of emotion, which a lot of the time will get the best of us. Even though that sell order should be placed, GREED takes over. We hold on just a while longer wanting to make that extra buck. Then the worst happens, the chart reverses. We then hit the DENIAL stage, where we refuse to believe this is happening, we think that Technical Analysis has failed us and the price will somehow come back. Eventually we hit a bit of support! This is the HOPE stage, where we hope that somehow the price will rise high enough just for us to break even. This all eventually leads to the final stage of REGRET. Also known of the land of no recovery.
Do not let emotions get the best of you. Emotions are never a reliable way to predict price movements. Emotion is something that we all must overcome, if we wish to succeed in the trading industry.
Above, REGRET sets at $4150. This could be an excellent short opportunity for BTC. After just about hitting a triple-top, the BTC rise was rejected, which was immediately followed by a break in the most recent trendline.
IF hope prevails we will likely retest the previous high. IF hope fails we will likely hit our REGRET target of $4150 which rests on a previous trendline.
Always know that shorting in a BULL market is risky. I advise using caution. If you are not a margin trader, $4100-$200 could be an excellent buy for you.
Good advice! I just won't follow it cause I'm greedy and stubborn. I set my sell at 4685.00 and I'm gonna sit on it till it gets there, even if I have to take the long route there or get some very strong signals that we are going down big. I do not think we are in the short term. That pullback was a headfake to wash out traders or a whale getting rid of some loose change. Good luck on what ever your game. Just remember, unless you hold lots and lots of coins , no one knows for sure where it stops going up or down.
oh92
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@cgavel, However, with good TA, you can have a solid idea :)
bassliner
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The emotional market cycle
buy into the fear sell in to the greed !!!
Yes, emotion is very hard to ignore. The market is still very bullish. Volume is good! A correction was too be expected. I can't see this dropping lower than $4200, that would be a great buy in today's market. Hoping & Thankful! Even if it drops to $1000, still thankful! HODL!!
oh92
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@SpandyAndy, I wish you luck! Regardless of which way the market is going, we can still make more money :)