In these situations most Newbies become prey of FOMO and lose most of their capital. They think it has Hit an ATH and will go for a Pullback and they Short. But it continues to Rise higher.
So I want to know how to react to this market and what do Hodlers do in these situations. Do they Sell, Hold or Buy More. How can we Newbies save ourselves from FOMO in this situation.
Making any kind of move during small fluctuations of the market is in direct contradiction with being a holder. A holder is a long term investor not a day trader. Which means the holder should try to invest their money into bitcoin at the best possible time but not look too much for a big dip.
Selling on rises, shorting on corrections, buying back, rinse and repeating is what day traders should do. They try to read the market and try to make a move based on the direction the price is going so that they can maximize their profit. This is obviously a difficult strategy. So choose which one you want to be based on that.