As soon as you sell, the price will rise, and as soon as you buy, the price will fall.
I will explain why this is the case, very simply!
This phenomenon is a classic example of cognitive bias, where a person feels the market is working against them. In reality, such situations are often explained by psychological and market factors:
1. The herd effect. Most people buy in moments of excitement and sell in moments of panic. This leads to the market likely correcting at precisely the times when the same decisions are made en masse.
2. Difficulty in prediction. The market, especially the cryptocurrency market, is extremely volatile and unpredictable. Even experienced analysts make mistakes when trying to guess the direction of prices.
3. Algorithms and large investors. Not only individual investors participate in the game, but also institutional investors, trading bots, and hedge funds. They analyze crowd behavior using complex algorithms and adjust their actions to maximize profits.
Billions of dollars are spent annually researching how most participants in the financial market, including cryptocurrency, will behave. There are specialized organizations for this purpose, such as:
🛑 Quantitative research centers develop mathematical models.
🛑 Psychological labs study the behavior of investors under pressure and uncertainty.
🛑 Data analytics companies use machine learning to predict prices.
All this research helps large investors stay one step ahead. Therefore, it is important not only to monitor the market but also to understand its basic logical mechanisms.
💡 What should I do?
How many times a day do you check prices and look at charts? Each time you look at the price, you start thinking like the crowd. Wait for the price you intend to sell, don't be too greedy. If emotions peak during a correction, don't engage or temporarily delete all cryptocurrency-related apps and do something else; this will help you think rationally and consistently in your decisions!
Don't be like everyone else, know more!
