🚨 Have you ever seen the market spike right after you sold, and then plummet right after you bought? You are not alone—and here’s why this happens to most people:

The “Familiar” Market Cycle

  • When you sell: The price stays flat for too long, you get discouraged and sell → right after, the price skyrockets.

  • When you hold: Determined to be patient → the market stagnates, neither profit nor loss.

  • When you buy: Seeing the price soaring, afraid of missing out, you FOMO buy → the price immediately reverses.

This feeling is too familiar, isn’t it?

The Truth Behind The Psychological Trap

1. Trading based on emotions

  • FOMO: Buying out of fear of missing out.

  • Panic: Selling when the market is in a frenzy.
    👉 The market often exploits emotions, not logic.

2. Cognitive bias

  • Recency Bias: Thinking that recent trends will continue.

  • Loss Aversion: Disliking small losses more than missing out on large profits.

  • Herd Mentality: Following the crowd, often too late.

3. The “Smart Money” trap

  • Every buy order has a corresponding sell order, and vice versa.

  • Sharks wait for retail to create liquidity, then reverse the trend.

4. Time misalignment

  • The market never operates on your schedule.

  • Real growth occurs when the majority… has given up.

The Ruthless Cycle Of The Market

  1. Smart Money buys the bottom — Retail is still afraid.

  2. Prices gradually rise — Retail remains skeptical.

  3. FOMO appears — Retail peaks.

  4. Smart Money takes profits — Retail gets stuck.

  5. The market corrects — Retail panics and sells off.

  6. Smart Money accumulates — The cycle repeats.

How to Escape The Trap

✅ Have a clear plan before entering a trade.
✅ Set target & stop-loss to preserve capital.
✅ Avoid FOMO: Don’t buy on green candles, wait for a pullback.
✅ Use data, not emotions: Make decisions based on analysis.
✅ Patience: The patient person always wins over the impatient.

💡 As Warren Buffett once said:
“The market is a transfer machine of money from the impatient to the patient.”

👉 If you find yourself in this situation:
🔄 Share to remind others.
💬 Comment “That's me” if you feel too familiar.
🔖 Save this to remember before the next trade.