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Sentiment follows price

lieutenantdan - 2024-05-19 21:07:54

Don't pay attention to sentiment


Pay attention to price, not sentiment.


Price is happening now, sentiment follows price and is a lagging indicator.


That is why when everyone hates something it is time to buy and when everyone loves something it is time to sell.


Like this:


image.png


(source: https://x.com/Washigorira/status/1792223810520809844/photo/1)


When you buy it should feel terrible and when you sell it should feel even worse.


Those are the emotions that must be mastered in order to be a good trader.