Learn the typical cycle and how emotions distort decisions.
Cycle
Most markets move through accumulation, expansion, euphoria, distribution, and contraction. The sequence repeats with different headlines.
How the cycle feels
- Accumulation. Boring. Low interest. Negative headlines.
- Expansion. Breakouts. Doubt remains.
- Euphoria. Confidence spikes. Risk ignored.
- Contraction. Denial then panic then apathy.
Why crypto amplifies emotion
Crypto trades 24/7 and can move fast. This creates urgency. Without rules, urgency becomes mistakes.
Anti-FOMO rule
If you did not plan the trade before the pump, you do not take it during the pump.
Process over prediction
- Define risk per trade or per week.
- Journal your decisions.
- Limit screen time during volatility.
Warning
Certainty often appears near tops. Doubt often appears near bottoms.
Quick quiz
- Name two cycle phases.
- What emotion dominates near euphoria?
- State one anti-FOMO rule.