In the world of investing, there’s an unspoken rule that few talk about but many have experienced: They want you to buy high and cry later. It’s a harsh reality, especially for retail investors who often enter the market with optimism and leave with regret. But why does this happen, and who exactly are “they”? Let’s take a closer look.
The Illusion of the Perfect Opportunity
Every time the market hits all-time highs, you’ll notice something: the media buzzes with excitement, social media is flooded with success stories, and financial influencers begin preaching about the "once-in-a-lifetime" chance to get in. This wave of hype isn’t accidental—it’s driven by institutions, media networks, and sometimes even tech platforms that benefit when more people buy in.
But here’s the trick: those who are truly savvy have often already entered at much lower prices. When the masses start buying in at the peak, the smart money is quietly exiting. It’s not that retail investors are stupid; it’s that the system is designed to make them emotional and reactionary.
The Psychology of Herd Mentality
Fear of missing out (FOMO) is one of the most powerful forces in the market. When everyone around you is making money, it’s hard not to jump in. And when the price keeps climbing, it feels like you're being left behind.
But markets are cyclical. What goes up with irrational enthusiasm often comes down with brutal reality. The unfortunate truth is that many investors buy at the top—drawn in by euphoria—and panic sell at.