Fear and Greed

Ever since I’ve decided to invest time and money in crypto, I’ve tried to absorb as much information as my often-confused brain can absorb. Playing dogs and animes used to dominate my YouTube feed. At the moment it is all about trading fundamentals and Crypto News.

Instead of golden retrievers, my searches now include how to spot a golden cross. I’ve only heard of the Fibonacci golden ratio because of the movie “The Da Vinci Code”, but right now I can draw a Fibonacci retracement on the chart with my eyes closed (well not exactly closed, since I’ll probably mess it up). My acronym game was only limited to Lol, btw, AFAIK, and the likes... but at the moment I can include EMA, RSI, MACD, and BOL. If you are going to say it sounds boring, l would probably say IKR.

So, have I made enough to retire early? Not really. At the time of writing, my small portfolio has probably lost enough money to feed a growing golden retriever for a year. I think all the information I tried to cramp inside my head was simply too much.

Will I stop? Nope, I am still holding on to my cryptos. But I’ve decided to let one indicator be the center of my game. I will be using the Crypto fear and greed index like a compass. I’ll simply buy whenever extreme fear is gripping the market and sell whenever extreme greed is rampant amongst traders. You see, humans are driven by emotions. Traders are no different. When there is fear, prices will be at a bargain and that is a good buying opportunity. When there is greed and a lot of people are buying in for fear of missing out, prices will become inflated. These inflated prices will soon hit a resistance that will burst everyone’s hope. I just have to sell before it pops.

I’ll still be using the other indicators, but the fear and greed index will be like my guide dog. Hopefully, it works. Otherwise, the missus would probably kick me out and keep the dog.

*I am not a financial advisor and this blog does not give any financial advice. Do your research and invest at your own risk.