A coin shoots up with a huge bullish candle, everyone in the group is yelling “Let's go!”, and your hand twitches as you chase in—only to end up buying
at the top. This same script plays out every day.
Take a good look at that huge bullish candle that gets your heart racing: it's what people who are already fully invested hope you'll chase in and take
their bags. Chasing a sharp rally on heavy volume is basically providing liquidity to those who were already holding.
One simple but effective trick: when you feel like chasing, force yourself to wait for three candlesticks. If the pullback comes on lower volume and finds support,
you'll get a better entry; if it drops straight back down, congratulations—you've just saved yourself an expensive lesson. The market will always
give you a second chance, but it won't give you your principal back a second time.
What do you think? Share your experience in the comments.