Many people are very puzzled about the fate of retail investors, wondering why they are always the ones being harvested and have never heard of big players being harvested. Those who control resources can harvest retail investors without scruples in this wild world. These resilient retail investors, who can spring back to life after being burnt by wildfires, make me feel bitter when I think about it; you can say they are pitiful, but upon closer thought, they are actually more detestable.
From the first day of entering the cryptocurrency world, every pore of him is infected with the virus of greed, spreading freely among each other in the crypto space. However, this virus does not benefit them; instead, it mutually influences them to lose money together in the cryptocurrency world, falsely named as 'keeping warm together,' when in fact they are just a group of rabble.
Every time there is a bull market, they will rush into the market with their hard-earned money, even their children's milk money, and during bear markets, they sell at a loss, silently healing their wounds during the long bear cycle. In bear markets, they are the victims of the crypto world and will spread the evils of the crypto market everywhere. However, once a bull market arrives, these opponents of the crypto world will immediately rush in, infected with the virus of greed. The result is just another tragic repetition.
Why do these newbies always enter the market during a bull run and exit during a bear market, losing money in the cryptocurrency world with this almost foolish approach? Why do they always sell at a loss at low prices? Why don't they understand taking profits?
Later, I finally understood that it was due to the following reasons: bears last longer than bulls. Every bear market is always longer than the bull market. Small fish have experienced three cycles of bulls and bears; generally speaking, a bull market lasts about a year, while a bear market lasts 2 to 3 years.
As more and more countries adopt Bitcoin as their legal currency, its influence is growing. Many friends can easily be brainwashed by various cryptocurrency myths. After seeing too many wealth myths, they can't help but rush into the cryptocurrency world. Unfortunately, the moment you enter may be during a bear market. You think you have reached the bottom because the price has dropped so much, but you actually end up buying at a mid-level, especially with altcoins in a bear market, which can drop without any limits. With a very weak risk tolerance, you can only sell at a position you cannot tolerate.
In the crypto world, the entry point for making money is very important. If you are lucky enough to enter during a cold bear market, as long as you have a bit of investment knowledge, you will make money when a bull market arrives. If the timing of your entry is wrong, and you have no investment knowledge and just want to come in and try your luck, you will only end up with serious losses.
During bear markets, there is often a need for money. Many people may not have thought deeply about this issue: it seems that money is not needed in life during bull markets, but when a bear market occurs, various aspects of life suddenly need money. This is actually a common phenomenon; when you need money, it is often when it is hardest to earn it, and when funds are cut off, you have to cash out from the stock market or cryptocurrency market to subsidize your household.
For example, in recent years, the pandemic has made it difficult for everyone to earn money, and the cryptocurrency market has remained sluggish, delivering multiple blows to us. Many people have lost their jobs, and companies that can pay you a regular salary are conscientious enterprises; don't even expect any year-end bonuses. Just being able to avoid layoffs in a company is already a blessing.
When you need to cash out in the stock market or cryptocurrency market, it is also when the market is not doing well. Cashing out at this time is equivalent to selling at a loss. Therefore, everyone sees many people choosing to sell at a loss during bear markets; it's not that others are foolish, but the pressures of life compel them to make this choice. During bull markets, generally speaking, the economic situation is good, work is smooth, and earning ability is decent, so there are usually no areas in life that require money, thus they do not choose to take profits at high positions.
If we could learn to take profits, we would be investment experts. During an uptrend, the willingness to sell is lower. As mentioned earlier, most retail investors in the crypto world carry the virus of greed, which is human nature and hard to overcome. In a bull market, the market rises day by day, and seeing the increasing numbers in their accounts, they always fantasize about wanting more.
There is a saying in the crypto world: missing out on coins is more painful than losing money. It seems like a joke, but it is a fact; people in the crypto world always have this mindset and want to earn more.
Only when greed truly has human nature will the retail investors be toyed with by the big players at their fingertips. They do not need to do anything; they can easily complete the harvesting of the retail investors by unintentionally adding fuel to the fire in the fluctuating market.
These days I am preparing for the upcoming divine orders!!!
Comment 168 to get in!!!
Impermanence brings impermanence brings impermanence brings!!!
Important things are said three times!!!