#b Because the new trader who enters today at these prices, which are considered a very significant bottom, when the price drops by 10%, will exit in panic, and when it rises by 10%, will enter out of greed and remain in this state until their cumulative losses reach 50%, at which point they decide to exit permanently, and then the market takes off. This is not a coincidence at all, but rather a psychological strategy used by the market maker to trap the funds of newcomers,
✔️ As for the old trader who is suffering heavy losses due to the same strategy employed by the maker on the new trader, but in a more advanced and stronger way, they will be patient with their losing assets because they are experienced and know that there must be a rise. But what happens?
✍️ When their losing assets rise by 10%, the majority will exit despite still suffering heavy losses, but psychologically, they convince themselves that since they have seen many up and down movements, they can sell now with a 10% increase from the last price of their assets and then re-enter when a drop occurs. Often, after waiting for days, the asset continues to rise, and FOMO (Fear of Missing Out) takes over all the trader's senses, and they start to enter above the selling price when they were at a loss of 10%. Here, their loss becomes 20%, and they repeat the same scenario until they reach a realized loss of more than 50% and decide to exit permanently, waiting for another opportunity,
🚨 Here, specifically, both the new and old traders have exited with a realized loss of more than 50% of their capital.