Have you ever seen the market surge right after you sell and plummet right after you buy? You are not alone - and here’s why this happens to most people:

The "Familiar" Market Cycle

When you sell: The stock price stays unchanged for too long, you feel discouraged and sell → shortly after, the price unexpectedly surges.

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

When you buy: Seeing prices surge, fearing missing out, you buy emotionally → the price immediately reverses.

This feeling is all too familiar, isn’t it?

The Truth Behind Psychological Traps

1. Trading Based on Emotions

FOMO: Buying out of fear of missing out.

Panic: Selling when the market is chaotic.

👉 The market often exploits emotions, not rationality.

2. Cognitive Bias

Recency Bias: Thinking that recent trends will continue.

Fear of Losing Capital: Disliking small losses more than missing big opportunities.

Herd Mentality: Following the crowd, often too late.

3. The "Smart Money" Trap

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

Whales wait until consumers create liquidity, then reverse the trend.

4. Timing Mismatch

The market never operates on your schedule.

Real growth happens when the majority... have given up.

The Ruthless Cycle of the Market

Smart Money buys the bottom - Consumers are still fearful.

Prices gradually rise - Consumers remain skeptical.

FOMO appears - Consumers reach a peak.

Smart Money takes profits - Consumers are at a standstill.

The market corrects - Consumers panic and sell off.

Smart Money accumulates - The cycle repeats.

How to Escape the Trap

✅ Have a clear plan before entering a trade.

✅ Set goals and stop-loss to protect capital.

✅ Avoid FOMO: Don’t buy when the candles are green, wait for a pullback.

✅ Use data, not emotions: Make decisions based on analysis.

✅ Patience: The patient always wins over the impatient.

💡 As Warren Buffett once said:

"The market is a mechanism that transfers money from the impatient to the patient."

👉 If you find yourself in this situation:

🔄 Share to remind others.

💬 Comment "Exactly" if you feel this way too often.

🔖 Save this to remember before your next trade.

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