FOMO of bull market

[bayu7adi]

Since there's a liquidation, it means you're using futures trading. This is the disadvantage in futures trading, while if you only use spot you wouldn't get liquidated. Some traders prefer futures because they can use leverage. However, using 2x to 4x leverage is quite safe since the liquidation price is too high. So if you increase your leverage the size of your liquidation will decrease. That's the reason why we should always stick to the plan we used to be.

Forced liquidations can come from Leverage Trading or Futures Trading. Both trading types are risky to use than Spot trading or more safer, Holding.

Even Spot Trading has less risk than Leverage and Futures Trading types, you will have to leave your bitcoins on a centralized exchange to trade with Spot. It is risky.

Reminder: do not keep your money in online accounts.

It's just a matter of risk preference. If you're willing to make the decision to trade with 20x leverage, it means you have to be prepared for the looming risk of liquidation at any moment. Keep in mind that Leverage Trading or Futures Trading markets are a bit different from spot trading markets, so their movements are also a bit distinct.

To learn a lesson, it's best to increase risk gradually, starting with low leverage first. Once you're confident in your trading skills, you can then use higher leverage. Never get greedy in trading with leverage, as it will only make you lose control, and it's one of the quickest ways to self-destruct. High-leverage trading can also lead to addiction.

[wxa7115]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

Since there's a liquidation, it means you're using futures trading. This is the disadvantage in futures trading, while if you only use spot you wouldn't get liquidated. Some traders prefer futures because they can use leverage. However, using 2x to 4x leverage is quite safe since the liquidation price is too high. So if you increase your leverage the size of your liquidation will decrease. That's the reason why we should always stick to the plan we used to be.

While that amount of leverage may not seem to be too high, that is more than enough for those that are expert traders, exchanges often promote the huge amount of leverage a user can take as a good thing, but it is the opposite, since the greater the leverage a trader takes the easier it is for them to get liquidated.

And it should not be surprising that the majority of those that choose a high level of leverage end up losing all their capital, so using a low leverage or none at all should be best choice for most traders.

[BlackBoss_]

It's just a matter of risk preference. If you're willing to make the decision to trade with 20x leverage, it means you have to be prepared for the looming risk of liquidation at any moment. Keep in mind that Leverage Trading or Futures Trading markets are a bit different from spot trading markets, so their movements are also a bit distinct.

I see it as gambling, not trading and trading or gambling, you must afford lose before doing it.

20x leverage is very big risk for your money but if you are ready, want to take big risk with hope that you can get bit profit, I wish you will get enough luckiness but I am not ready to do this.

To learn a lesson, it's best to increase risk gradually, starting with low leverage first. Once you're confident in your trading skills, you can then use higher leverage. Never get greedy in trading with leverage, as it will only make you lose control, and it's one of the quickest ways to self-destruct. High-leverage trading can also lead to addiction.

No, I don't agree with this suggestion.

When you use leverage, you always start with low leverage, then you will lose control and increase your leverage higher and higher. Eventually you will be rekted by the market and forced liquidations.

Your suggestion is increase low leverage gradually to higher leverage, that I disagree completely.

[libert19]

Getting FOMO or trying out to get in when the price is already peaking then it would really be just that a foolish action
that would be made out by someone.

yea, but you don't often know when it's peaking, or if it'll keep peaking. I have bought coins in past that went to increase further from my bought price even tho market was already increased to an extent then.

[EarnOnVictor]

Getting FOMO or trying out to get in when the price is already peaking then it would really be just that a foolish action
that would be made out by someone.

yea, but you don't often know when it's peaking, or if it'll keep peaking. I have bought coins in past that went to increase further from my bought price even tho market was already increased to an extent then.

Let me guess, the coins that do that must be a shitcoin, they are the forgotten coins that could just resurrect from now where through some artificial pumping when other major coins/tokens have had their initial rise due to the pump. It's often interesting to see some of them pumped x2, x4, x5 and so on in this regard. I saw many of them that were sluggish in movement when the bull run happened in the past 4 months. But suddenly in December, they started moving dangerously upwards. It could only mean that people abandoned them and focused on the major initially and when they were done with the major, they started looking elsewhere to pump until they got to their turn. They often pump the low-value coins/tokens at that time and that explains why some of them could suddenly move over x10 in just a few days.

Anyway, we should be prepared for the worst as an investor, the market may go as planned, or it may not go as planned. But one that is certain is that we should only invest in a bullish market, and as long as the market remains bullish, no one should stop investing even if they believe they are entrapped by the spirit of FOMO. FOMO most times helps investors, especially on the asset they have reliability upon just like Bitcoin. Another time to invest is when the market is at its bottom level.

[hd49728]

Let me guess, the coins that do that must be a shitcoin, they are the forgotten coins that could just resurrect from now where through some artificial pumping when other major coins/tokens have had their initial rise due to the pump. It's often interesting to see some of them pumped x2, x4, x5 and so on in this regard. I saw many of them that were sluggish in movement when the bull run happened in the past 4 months.

When altcoin season comes, many shit coins will be used for pump and dump games. If you join early before their pump games, and you can hold those shit coins, you get profit. If you ignored them months ago and now only consider to join because they rose a lot and stimulate your greediness, you might end with big loss.

After pumps, there will be dumps because they are two parts of pump and dump games.

But suddenly in December, they started moving dangerously upwards. It could only mean that people abandoned them and focused on the major initially and when they were done with the major, they started looking elsewhere to pump until they got to their turn. They often pump the low-value coins/tokens at that time and that explains why some of them could suddenly move over x10 in just a few days.

They fell in last three years since 2021 to 2023 and when they started their rallies, you should never touch those shit coins and short them. Your margin position will be very easily liquidated if you open a position that is opposite with the market trend, that is upwards now. Don't short because you can not know how high they will rise to before stop and start corrections.

If you miss their pumps, stay patient, observe it and the market, don't short.

[EarnOnVictor]

Let me guess, the coins that do that must be a shitcoin, they are the forgotten coins that could just resurrect from now where through some artificial pumping when other major coins/tokens have had their initial rise due to the pump. It's often interesting to see some of them pumped x2, x4, x5 and so on in this regard. I saw many of them that were sluggish in movement when the bull run happened in the past 4 months.

When altcoin season comes, many shit coins will be used for pump and dump games. If you join early before their pump games, and you can hold those shit coins, you get profit. If you ignored them months ago and now only consider to join because they rose a lot and stimulate your greediness, you might end with big loss.

After pumps, there will be dumps because they are two parts of pump and dump games.

You have good points there, we should be very careful in our crypto investment and no one can actually make 100% certainty on what any market would do. Just like we see it recently, there are altcoins that moved over x10, this is why I like to maintain a higher stake in them no matter what. And when the opportunity of striking them at a very low price is there, you are so lucky, and no matter what the manipulations could be, you will never get affected since you struck at a cautious level. Take for instance, you bought a token and have already earned x10 due to the altcoin bull run, no matter how the manipulation could be, you can't still be careless to the extent that you will go home with lesser than x5 profits irrespective of how fast the dump is.

However, it is good to diversify your portfolio in this regard, and if you have about 10 different altcoins, most of them will not behave haphazardly as you described, they will still retain their profits as long as possible, just as we see in the recent bull run. There are many altcoins that didn't relent at all but continue to hit a higher year's ATH. I expect the same to happen in 2024-2025, and, as you can see, the time to invest is so much, so will be the time to prepare for a liquidated position as no one should be fearful in their investment plans but professional. The right choice of the asset matters as well, and the trader must be ready to guide their views and decisions rightly with good speculation and not fear the dump that often causes mistakes in investors' decisions.

[Wind_FURY]

Many newbies that wanted to "trade" because they wanted to be a "millionaire" would have been in a better position financially today if they merely saved and HODLed Bitcoin.

That's quite true for any alt, not merely for Bitcoin, but yeah it's quite hard to find right alts sometimes. One of my friend did lots of trades of Matic back when it was few satoshi, had he just purchased and held, he would be having more money than however much he made by trading it.

I believe your reason why might be different from my reason. Because of the design decisions made by the Core Developers, there's a higher probability that the Bitcoin blockchain will exist and continue chugging along longer than all of other blockchains. It's not designed to be fast, it's designed to be robust.

In 10 years, there might only be Bitcoin and maybe two or three altcoins in existence.

[doomloop]

I believe your reason why might be different from my reason. Because of the design decisions made by the Core Developers, there's a higher probability that the Bitcoin blockchain will exist and continue chugging along longer than all of other blockchains. It's not designed to be fast, it's designed to be robust.

In 10 years, there might only be Bitcoin and maybe two or three altcoins in existence.

I still think that you are wrong on the number of altcoins. The reality is that, with what you said, you are right about the fact that bitcoin was made for lasting and that means it will outlast every other blockchain and of course that means every other altcoin as well.

But, there are two reasons why alts will survive as well, in 10 years there will be some alts who have changed their blockchain and they will last because of that as well and also there will be new ones as well which will be created around that time.

So thousands of alts will always be there, not because they have lasted for a decade, but because there will be new thousands of coins every single year as well, specially on bull years they get a lot more. This is why bitcoin will always stay at the number one position, and all other coins could always switch their position, but we need to accept the fact that altcoin world is not going anywhere, they will continue to exist in some form.

[LogitechMouse]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

This is the reason I already quit trading.
At the start, you will get some profit using x2-x5 leverage, but it will be small, and you feel that you need more. Greed got me at that time, and my next trades are already at x10 or even x20 leverage. The ending is I lost all of my profits that I got from I think 2 weeks just because of a single entry.

I guess if you are investing for the upcoming bull market, leveraging isn't the way, but just hold it. I mean why leverage it still? For the sake of profit? We expect that the bull run will happen in a few months to maybe a year from now, so why not just hold it instead?

If you can't control yourself, don't trade. Simple as that or else, you will lose your money. I can't control myself whenever I'm trading that's why I stopped it already.

[libert19]

Many newbies that wanted to "trade" because they wanted to be a "millionaire" would have been in a better position financially today if they merely saved and HODLed Bitcoin.

That's quite true for any alt, not merely for Bitcoin, but yeah it's quite hard to find right alts sometimes. One of my friend did lots of trades of Matic back when it was few satoshi, had he just purchased and held, he would be having more money than however much he made by trading it.

I believe your reason why might be different from my reason. Because of the design decisions made by the Core Developers, there's a higher probability that the Bitcoin blockchain will exist and continue chugging along longer than all of other blockchains. It's not designed to be fast, it's designed to be robust.

Well, I was saying, holding can be better for alts too, rather than actively trading them.

I'm sure Bitcoin will last long, I don't doubt it.

In 10 years, there might only be Bitcoin and maybe two or three altcoins in existence.

Plenty alts keep popping up even now, in future it's only going to increase. Alt number will likely be in hundred thousands in 10 years. But, prominent alts might be few like Ethereum is now,  others will keep changing positions in tracking sites and eventually disappear.

[kojektea]

We both miss coins that once made us experience multiple profits, but I'm sure as long as crypto can still be traded, it's not too late to try again, even though it definitely happens on a different coin, at least we still have the opportunity to gain multiple profits in the future. I am enlightened on several coins, for now more on WLD and OGN coins. two of my favorite coins that are suitable for saving for the future.

[arwin100]

We both miss coins that once made us experience multiple profits, but I'm sure as long as crypto can still be traded, it's not too late to try again, even though it definitely happens on a different coin, at least we still have the opportunity to gain multiple profits in the future. I am enlightened on several coins, for now more on WLD and OGN coins. two of my favorite coins that are suitable for saving for the future.

This thinking make other people go with those crypto's they think have potential to pump huge that's why sometimes they caught up and get FOMO when certain good pumps happen then also to many people hype the said project. If we are not careful we can lose our funds so to avoid commiting such huge mistake. For now I'm into top coins but still looking forward to invest on other altcoins which I think have good potential to get a good pump, for now just monitoring the noise created by people and some actions made by project owner since I want to be wise since can't afford to commit mistakes especially I don't want to a possible huge lose due to miscalculation of everything in alts investment.

[Wind_FURY]

I believe your reason why might be different from my reason. Because of the design decisions made by the Core Developers, there's a higher probability that the Bitcoin blockchain will exist and continue chugging along longer than all of other blockchains. It's not designed to be fast, it's designed to be robust.

In 10 years, there might only be Bitcoin and maybe two or three altcoins in existence.

I still think that you are wrong on the number of altcoins. The reality is that, with what you said, you are right about the fact that bitcoin was made for lasting and that means it will outlast every other blockchain and of course that means every other altcoin as well.

But, there are two reasons why alts will survive as well, in 10 years there will be some alts who have changed their blockchain and they will last because of that as well and also there will be new ones as well which will be created around that time.

So thousands of alts will always be there, not because they have lasted for a decade, but because there will be new thousands of coins every single year as well, specially on bull years they get a lot more. This is why bitcoin will always stay at the number one position, and all other coins could always switch their position, but we need to accept the fact that altcoin world is not going anywhere, they will continue to exist in some form.

That's true, I might be wrong. But name an altcoin that would exist for as long as Bitcoin exists, and I'm very confident that that altcoin would have a high probability of not existing as long as Bitcoin. But there might be two or three blockchains co-exisiting with Bitcoin in 10 years, maybe longer than that.

Everything we're currently experiencing is part of one giant cycle that will not keep surging forever.

I believe everyone should read this book to understand my viewpoint, https://www.goodreads.com/en/book/show/91360



There's a free audio-book in YouTube.

Each chapter tells a different story of the same phenomenon and it's also happening in the cryptocurrency "industry".

[Hamza2424]

I've already made my comment earlier, still according to the market sentiments and the latest momentum I would say the peak of FOMO is already broken market gave a decent buying opportunity last week, but in the current scenario the funding rates are still not so good and the market is getting overheated I'm damm sure that market will re-liquidate positions.

TBH currently there are no signs of the bearish movement.

[348Judah]

We both miss coins that once made us experience multiple profits, but I'm sure as long as crypto can still be traded, it's not too late to try again, even though it definitely happens on a different coin, at least we still have the opportunity to gain multiple profits in the future. I am enlightened on several coins, for now more on WLD and OGN coins. two of my favorite coins that are suitable for saving for the future.

Not until we are ready to take the risk in making an investment on digital currencies, then we may not be a partaker of the positive vibes of what is going on in the crypto sphere, not every of us are ready to take the risk other's took in making an investment on digital assets, but yet we still expect to have thesame kind of benefits or result with the same kind of risk taking individuals, the more we want to have something big the more we must be willing to embrace for its bigger challenge.

[Getmon]

Prices are still distant from their past all time highs and this is the reason many individuals are convinced that the market remains a good buy.

But futures trading is extremely dangerous and requires accuracy in dissecting the market. FOMO cannot be applied to futures trading. This is different from the traditional manner of investing and trading where we can plan to do it long term and with longer time frames. To be safe in futures trading, put a limit and use a small sum of money. Using 2-4x leverage is tolerable but a 10x trade possessed risk of liquidation.

[lalabotax]

I see it as gambling, not trading and trading or gambling, you must afford lose before doing it.

20x leverage is very big risk for your money but if you are ready, want to take big risk with hope that you can get bit profit, I wish you will get enough luckiness but I am not ready to do this.

If it is a trading system with leverage, future markets, it is definitely higher risk, always high risk. And if you do that without careful analysis and consideration, it is really gambling. Trading with leverage is something that is not easy to do, except for certain professionals who already have several ways to anticipate various unexpected conditions related to market. So whatever the market condition, whether short or long, they can get more profits compared to losses. However, if it is only associated with FOMO because of the issue of a bullish era, without having sufficient knowledge, the risk will be much greater. And we really have to be alert to various things that can cause us to lose.

[Yamifoud]

Prices are still distant from their past all time highs and this is the reason many individuals are convinced that the market remains a good buy.

But futures trading is extremely dangerous and requires accuracy in dissecting the market. FOMO cannot be applied to futures trading. This is different from the traditional manner of investing and trading where we can plan to do it long term and with longer time frames. To be safe in futures trading, put a limit and use a small sum of money. Using 2-4x leverage is tolerable but a 10x trade possessed risk of liquidation.

Most of the time we get some temptation, and we then fail. Most of the time we move away from the usual things we do had also create additional experiences that will teach us, and this is what happened to OP and those who tried 10x leverage. Sometimes we think that trading needs some luck, like gambling. That is why most traders choose to stay 2-4x leverage because even earning just a small amount but at least the risk is manageable enough. But most of us wanted instant, aiming more which usually ends in losing more.

[Johnyz]

I've already made my comment earlier, still according to the market sentiments and the latest momentum I would say the peak of FOMO is already broken market gave a decent buying opportunity last week, but in the current scenario the funding rates are still not so good and the market is getting overheated I'm damm sure that market will re-liquidate positions.

TBH currently there are no signs of the bearish movement.

We are still bullish and the recent correction is just part of the trend and this is not just about FOMO anymore as Bitcoin is able to sustain its momentum and I’m sure it will continue pump until the end of the next and up to the next halving. There’s a lot of altcoins today who are already close to reach their new ATH, its early to say but it can happen any time, better to grab the opportunity now while the market is still not expensive, we might see the bullish trend of all time with Bitcoin and good altcoins.