Everyone thinks chasing momentum is “safe” once everyone is talking about it, but actually that’s often when risk is highest.
A lot of traders lose money not because they picked the wrong asset, but because they enter after the easy move is already gone. FOMO makes a chart look like a train leaving the station, until it suddenly turns into an elevator going down.
1.
$SPCX is now trading below its IPO price, just one month after the market was chasing the rally. It’s reportedly $11 under that IPO level now, which is a reminder that hype can cool off faster than most people can react.
2. Momentum works both ways. When buyers are rushing in, price can look unstoppable. But once demand fades, the same speed that pushed it up can drag it down, just like
$BTC or
$ETH during overheated moves.
3. The warning is simple: don’t treat a popular ticker like a guaranteed entry. Before buying strength, ask what happens if the crowd stops buying. Where is your exit? What invalidates the trade?
Anyone else seeing more “hot” names start to roll over?
#CryptoTrading #RiskManagement #MarketWatch