Moonlight vs. The Red Candles: An Emotional Rollercoaster of a Trader
The moonlight outside created a serene, romantic atmosphere. Meanwhile, on my laptop screen, crypto candles were flickering up and down. But which would win—the gentle moonlight or the glaring light of the laptop? For the past three hours, my eyes had been glued to the green and red candlesticks.
Phones were buzzing with text messages from loved ones and friends, but I paid zero attention to any of them. It was impossible to look away from the screen.
During those three hours, my subconscious mind was solely occupied with thoughts of successful traders. Random, unpleasant past crypto events flickered in and out of my head. My eyes remained locked on the display because a green candle had formed after another—a coin was pumping, and its price was skyrocketing! “Whoa! This must be the big chance I’ve been waiting for.”
My heart rate spiked. I started imagining that tomorrow, everyone would view me as a successful trader. I would buy expensive gifts for all my friends. A sharp wave of greed gripped my heart—"Everyone is making so much profit! If I don't enter right now, I’ll miss this opportunity of a lifetime!"
Should I take the trade now, or wait for the next candle? Caught in this confusion, I missed the sure-shot entries. Missing multiple opportunities triggered a deep sense of fear inside me. Driven by that fear, I’d pull back, drifting off into a world of daydreams, mentally reliving the stories of successful traders and imagining myself living their lifestyle. That cycle would temporarily pump me up with false courage, only to crash right back into confusion and fear. Time slipped away, and the beautiful moon outside seemed to drift further away in disappointment.
In the language of trading, this is known as FOMO (Fear of Missing Out).
The logical voice inside my head screamed—"The chart is in an extreme overbought state; entering right now is pure madness!" But logic lost to raw emotion. Wrapped in dreams and emotional frenzy, closing my eyes without any proper analysis or a stop-loss, I dumped a massive portion of my capital into that coin.
Just two minutes after entering the trade, it felt as though a pitch-black, new-moon darkness had entirely swallowed the moon outside. The gentle breeze blowing through the window suddenly turned into scorching, volcanic lava that engulfed my entire body.
Suddenly, a massive red candle formed! The price began to plummet at an unbelievable speed. My chest went completely hollow. For a fleeting second, it felt hard to breathe.
The very same green candle that had made me dream of becoming a millionaire was now bleeding in deep crimson.
10% loss... 15% loss... 20% loss!
Amidst that lava-like heat and pitch-black darkness, sweat beaded on my forehead as I stared at the laptop screen. My hard-earned capital was evaporating right before my eyes. Panic made my hands shake, and I started squirming in distress. That was when Panic Selling took hold of my mind!
“What if everything goes to zero? What if I end up completely broke?”—driven by this terror, I couldn't take it anymore. I capitulated, panic-selling right at the absolute bottom. I closed the trade and booked the loss.
And then, behold the cruel irony of fate! Just five minutes after I exited, the market reversed and rocketed back upward. At the same time, the moon outside reappeared in the night sky.
I leaned back into my chair. Stunned, speechless! The list of this month's rent, grocery bills, EMIs, and other expenses flashed before my eyes in a single instant. The most ironic and painful part was that the amount of money I had just lost in mere moments could easily have covered my living expenses for the next 6 to 8 months—even funding a couple of tours!
That night, I learned a profound truth. Trading is far beyond just a game of chart analysis or indicators; the ultimate game-changer is the psychological capacity to control one's own emotions. The market charts never defeat me—I am defeated by my own emotions, my own confusion, my own greed, and my own fear.
💡 3 Key Takeaways from My Experience:
Avoiding FOMO: Jumping into a trade just because you see a green candle is walking straight into a trap. The market will always offer endless opportunities, and missing one should never drive you to reckless decisions. Also, when trading, your full focus needs to be on the charts; daydreaming about successful traders' stories will only distract you.
Using a Stop-Loss: Proper risk management and a stop-loss are absolute musts for every single trade. Otherwise, not trading at all is infinitely better.
Controlling Emotions: Panic-selling at the bottom and entering trades out of emotional impulse will systematically wipe out a trader's capital. Not only does it destroy your funds, but it can also turn a beautiful moon into pitch-black darkness and a cool breeze into burning lava.