Strong declines x Slow recoveries
The interesting dynamics of the market that I will explore in this post, everything favors you to incur losses and not profits.
When bad news happens, for example an imminent war, the market collapses strongly, terrible declines, enormous losses; theoretically, when this news "is resolved", the market should return to its starting point before the decline, which would already be bad because you would not recover your loss, since a 10% recovery does not recover a 10% decline, but this rarely happens.
We had a strong decline with the outbreak of the war between Russia and Ukraine, but now everyone is seeing that the end of the war is near, there may still be developments but it will end in the short term, yet this does not make the market react anywhere near what it fell when the war broke out. And so we can list several things: a hacker attack causes the market to crash, but if the hacker is soon captured, everything is discovered, security is enhanced, this does not make the market return. If a broker goes bankrupt, the market crashes; if it recovers, pays those who had lost, or a new broker emerges, the market does not recover in the same way. If bad inflation data comes out as occurred in recent months, the market plummets; however, days ago excellent data came out indicating inflation control, the market expected it to come in line and it came out better than expected, better than the forecast, yet the recovery did not happen, which no longer surprises me.
I don't know if the people who leave the game when bad news comes to light never return, I don't know if this is how the logic of the crypto market works, like gossip: good things don't make news, bad things spread quickly among people, but I know that in this equation, we enter a game where we are always at a disadvantage, the score always starts adverse, our team always has fewer players, a lot of strategy and study is necessary; otherwise, everyone would come to the market and leave as millionaires.
