> For the complete documentation index, see [llms.txt](https://axs.gitbook.io/solana-nfts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://axs.gitbook.io/solana-nfts/psychology-and-market-cycles/self-control.md).

# Self control

## The illusion of control

While trading NFTs <mark style="color:green;">**isn't**</mark> entirely based on **chance**, **opportunities** are very common and people can make huge <mark style="color:green;">gains</mark> as well as huge <mark style="color:red;">losses</mark>. That simple phrase is not to be faded. We aren't gambling, (well, even if sometimes we are) it's not because you made huge gains that you have control. *No one controls the market, not at our level*. \
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Based on that, people <mark style="color:orange;">overestimate</mark> the role that applying specific types of knowledge or skill might play in outcomes.\
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Keep in mind that <mark style="color:red;">no one</mark> knows the market at <mark style="color:green;">100%</mark>, not even your favorite <mark style="color:orange;">**influencer**</mark>. In fact, it can be your <mark style="color:red;">worst</mark> <mark style="color:red;"></mark><mark style="color:red;">**enemy**</mark>.

## Preoccupation

Preoccupation is a recognized feature of most major conceptual models of <mark style="color:orange;">**addiction**</mark>. Those who engage excessively in a particular activity often find it **difficult** to **disengage** from the activity. They may continuously think about the activity and <mark style="color:orange;">prioritize</mark> it ahead of other important responsibilities. And crypto/nft trading appears to be an activity that has the potential to be <mark style="color:green;">**highly absorbing.**</mark>

> "*Buy what helps you sleep. Sell when it keeps you up*." **-** Gaius

<https://twitter.com/gaius1337> (To be followed. Amazing guy as well.)\
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Basically, when you purchase any asset you should be confident about your purchase. \
For example, if your asset is tanking a bad <mark style="color:red;">**-30%**</mark>, you're fine with it because you're convinced of the future success of your investment. If that's **not** the case, it means you're not 100% confident and it will <mark style="color:orange;">drain your focus</mark>. \
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On a side note, if your asset is tanking, try to **understand** why; market sentiment? community sentiment? maybe you could've managed to get a <mark style="color:green;">better entry</mark>? Turn every <mark style="color:red;">loss</mark> to your <mark style="color:green;">advantage</mark> and learn **priceless lessons**. Keep in mind that loss of momentum/price retracement is **normal**, a <mark style="color:orange;">decreasing</mark> asset isn't automatically a <mark style="color:red;">bad</mark> asset.

## Fear Of Missing Out

This one will be easier with the help of a few pictures. \
FOMO is a simple principle that needs a lot of knowledge and self-control to get over.\
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Overall, keep in mind that there are new opportunities **every single day** and that you're missing out on 99.9% of them every day, you missed one? Let's wait for a new one. Instead, get over it and use this missed opportunity to <mark style="color:purple;">**learn something**</mark>. What goes up may go down and what goes down may go up. **At any moment**. \
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Let's have a look at $DUST, from 08/24 to 08/30 the price was <mark style="color:green;">**up only**</mark>, Twitter went crazy and every single person on your timeline was telling you to buy $DUST for generational gains.\
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Should you buy some? **If you're a beginner**, the answer is <mark style="color:red;">**no**</mark>. **You missed this train**, **let's wait for the next one**. Your buy zone should've been somewhere in the red circle or before. When the market is <mark style="color:green;">euphoric</mark>, it's time to consider an <mark style="color:red;">exit</mark>. When the market <mark style="color:red;">bleeds</mark>, it's time to consider an <mark style="color:green;">entry</mark>. A large portion of traders aren't successful, if you want to be successful you either need to go against people or you need to be among the first investors to discover a gem.\
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So okay, you missed this train, but you love $DUST, what can you do? The easy thing to do if you're interested in this asset for the mid/long term would be to DCA over the coming days/weeks/months. Alternatively, if you already have some knowledge of trading, you could wait for a retracement.

<figure><img src="https://2472405929-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvQDq78z3JU3VUNq9DIbn%2Fuploads%2FDftMLZz2DyysKfCuNs1B%2Fimage.png?alt=media&amp;token=770dd4cd-06bd-47a3-a529-55ac0f293d2d" alt=""><figcaption><p><a href="https://birdeye.so/token/DUSTawucrTsGU8hcqRdHDCbuYhCPADMLM2VcCb8VnFnQ">https://birdeye.so/token/DUSTawucrTsGU8hcqRdHDCbuYhCPADMLM2VcCb8VnFnQ</a></p></figcaption></figure>

{% hint style="info" %}
In that case, we missed an entry, but FOMO could happen on exits as well.
{% endhint %}

Here, SOL price <mark style="color:red;">decreased</mark> in a few days, but that **doesn't mean** that it's a bad coin/project or that we're doomed and that we **should sell everything**. \
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If you want to cut your position, people tend to wait for a little reversal to sell. That's **not** necessarily a good idea.\
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As an example, instead of going across a <mark style="color:red;">**-30%**</mark> and selling at the next <mark style="color:green;">**+5%**</mark>, it would've been a better move to cut your position at <mark style="color:red;">**-15%**</mark>**&#x20;or&#x20;**<mark style="color:red;">**-20%**</mark>. That's why risk management is super important.

<figure><img src="https://2472405929-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvQDq78z3JU3VUNq9DIbn%2Fuploads%2FvgqZt7mnXrr892bDjftJ%2Fimage.png?alt=media&amp;token=afe96dfa-8727-4afa-8514-1b0869b9eb57" alt=""><figcaption><p><a href="https://birdeye.so/">https://birdeye.so/</a></p></figcaption></figure>

With the help of: <https://www.arabianbusiness.com/spotlight/the-psychology-of-cryptocurrency>