Why do you always buy at the top and cut losses at the bottom? Let’s get straight to the point today.
Psychology has a term called FOMO (fear of missing out). When Firo has been soaring for three days 🔥 and the whole internet is shouting for you to buy, your brain releases dopamine, making you feel like "if I don’t buy now, it’ll be too late." As a result, you buy at the peak, then it starts to pull back, you panic and sell at a loss, and then it goes back up again — a perfect high-buy, low-sell loop.
I’ve observed retail investor behavior for ten years and found a pattern: the trades that truly make money are the ones you hold through when you feel worst; the trades that lose money are the ones you jump into when you’re most excited. When BTC $79,908 rose from the bottom, nobody dared to buy. But when it doubled to the $79,908 level, everyone was rushing to get in.
How do you solve it? Three sentences: 1) The stronger the rise, the calmer you should be, 2) The sharper the drop, the more you should look at the fundamentals, 3) Always keep 20% cash for opportunities. Treat trading like a business, not a gamble.
Are you in FOMO or panic right now? Tell us in the comments when your most recent chase at a higher price was, so others can learn from it.
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