Why is it that when I buy cryptocurrencies they drop, and when I sell they rise?
Guys, we all have experienced this strange feeling: you buy a cryptocurrency with enthusiasm... it drops! You sell it in fear... it rises.
So is there a curse or is there a logical explanation?
The answer is simply: it's more psychological than magical.
1. Emotional Decision
We often buy when the market is "heated" and everyone is saying to go up! And here we enter late.
And we sell when we feel fear and see a drop, so we sell at the bottom, and then the market rebounds.
2. Whale Movement
Big investors (whales) know how small ones think, so they let the price rise quickly to get people in, then they sell, causing the price to drop.
And when everyone sells in fear, they buy at a low price.
3. Lack of a Plan
Those who enter the market without a clear plan (Where do I buy? Where do I exit? How much do I lose?) act randomly, and this causes repeated losses.
4. Late Analysis
Most people rely on news or delayed signals. By the time the signal reaches them, the price has already peaked or...