Price fluctuations are mostly a psychological game played by traders—about 99% of the time, it has little to do with the company's fundamentals. The real secret to making money is to operate counter to these emotions—stay calm when they flood in, and take action when they cut losses and run.

How to judge when to act? The Fear/Greed Index is a useful tool. It combines volatility, trading volume, social buzz, and market surveys to give you a quantitative measure of market sentiment. When the index soars above 85, the market is extremely hot, which is usually a signal to reduce positions or lock in profits. Conversely, when the index drops below 20, especially to extreme levels like 10, it indicates that panic is irrational. Although prices may still be falling, from a risk-reward perspective, the buying opportunity is incredibly attractive.

Want proof? During the major dip in early 2025, the Fear Index briefly dropped below 15, and Bitcoin rebounded over 80% within three months. Data speaks for itself.

Another overlooked point: information flow in the market is actually layered. Whales and large institutions grasp core information first, then retail investors hear about it. If you can position yourself before the mainstream narrative forms and the public reacts, the profit potential is much greater.