What happens to you is often called a common psychological and behavioral effect among traders, and its causes can be:
Late entry ⏰: Many people enter after the currency has risen significantly (FOMO - fear of missing out), so it’s normal to see a price correction after their entry.
Rapid volatility 📉📈: Cryptocurrencies are highly volatile, so any small movement after buying may seem like a "big drop" even if it is just a normal correction.
Whales 🐋💰: Sometimes they raise the price to attract small traders, and then sell large quantities causing the price to drop suddenly.
Luck and timing 🎲: Sometimes it’s just a coincidence that you buy at a short-term peak.
Short-term perspective 👀: When you track the price minute by minute, you feel that every drop is a big loss, while in the medium and long term it may be normal and healthy.
🔑 Advice:
Try to determine entry points based on analysis (support/resistance or averages) 📊
Do not buy out of emotion or fear of missing out 😨
Distribute the amount into installments (gradual buying) 💵
Focus on the long term if you are an investor, not a day trader 🕰️
This is an illustrative example 📊:
The red dots 🔺 represent the peaks (usually selling areas).
The green dots 🔻 represent the bottoms (usually buying areas).
The golden line represents price movement.
The thought is not to buy at the peak (after a strong rise) 🚫, but to wait at the bottom or after a correction ✅.
$BTC $ETH $BNB #SOLTreasuryFundraising #BNBATH900 #HEMIBinanceTGE #TrumpFiresFedGovernorCook
