📉 Why Do So Many Retail Traders Buy the Top and Sell the Bottom? 🧠💸
One of the biggest problems in #crypto (and traditional markets) is emotional trading. You’ve probably seen it—or maybe experienced it:
🚀 Market pumps → FOMO kicks in → Buy high
📉 Market dumps → Panic sets in → Sell low
This is the classic retail trap, and it’s draining portfolios daily.
But why does this keep happening?
🔍 Here are the key reasons:
• FOMO (Fear of Missing Out): Social media and influencers hype coins during parabolic runs (#DOGE, #SHIB, #PEPE).
• Lack of Strategy: No entry/exit plan. Just vibes.
• Over-leverage: Chasing gains with 50x leverage = liquidation city.
• Confirmation Bias: Only looking for info that supports the bullish/bearish emotion of the moment.
💡 How to escape the trap:
✅ Zoom out — use daily or weekly charts
✅ Set realistic targets — and stick to them
✅ Journal your trades
✅ Follow smart money, not loud voices
✅ Understand the cycle psychology chart (attached below 👇)
🧠 “The market is a device for transferring money from the impatient to the patient.” – Warren Buffett
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🔥 Let’s talk:
Have you ever bought the top or sold the bottom? What lesson did it teach you? Drop your stories below 👇
