Fear and Greed trading!

Hello!

Today I saw a tweet from Alex Wacy that is very interesting. He shared one of the simplest trading strategies ever, and the results are impressive.

The idea is very basic: buy when market sentiment flips from greed to fear. That’s it. No complicated charts, no expensive alpha groups, no secret indicators. Just watching the psychology of the market.
Do you know the fear and greed index right?

If not you can find it in coinmarketcap.com: https://coinmarketcap.com/charts/fear-and-greed-index/

Since May, this sentiment flip happened five times. If you had invested $10,000 in Bitcoin and $10,000 in Ethereum each time, the total would be $100,000 invested. And the result today? Around $135,420. That is a +35% gain in only 3 months.

This shows something very important, that markets are moved by emotions! (we are humans)
Fear and greed control most of ourdecisions. When everyone is euphoric, prices usually go too high. When everyone is scared, prices usually go too low. If you can stay calm and do the opposite, you can make money.

Of course, this strategy looks easy in theory, but in practice it is harder. When fear comes, it feels uncomfortable to buy. Everyone is saying the market is dead, that Bitcoin will crash to zero, that Ethereum has no future. And that’s exactly the moment when you need discipline to act. On the other side, when greed dominates, it feels like the party will never end. Selling or holding back in those moments is also hard.

But the numbers don’t lie. A simple approach like this, just following sentiment, has beaten many traders that spend all day with indicators and news. It’s not about being smarter, it’s about controlling your emotions and following a plan.

For long-term holders like us, this is also a lesson. Corrections are not the end. They are opportunities. Fear doesn’t last forever, and when it flips, the gains come fast. The bull run is built on these waves of fear and greed.

I hope you are having a great week! Take a deep breath, relax, and remember: the best opportunities come when others are scared!!
Cheers!

Posted Using INLEO