This feeling that the cryptocurrency market “goes up when you sell and goes down when you buy” is quite common among investors, especially beginners. Here are a few reasons why this happens:
1. Confirmation bias
You tend to remember more times when it happened than times when it didn't. This is a psychological bias called confirmation bias, where you notice and pay more attention to events that confirm your beliefs or fears.
2. High market volatility
The cryptocurrency market is extremely volatile. Small swings can seem very significant, especially if you follow prices regularly. These swings may coincide with your stocks, but they are just part of normal market behavior.
3. Imperfect timing
No one can accurately predict the market. Buying or selling at the "wrong" time is something that happens to all investors, especially if you don't follow a clear strategy and let your emotions get the better of you.
4. Emotional influence
Fear and greed can lead to impulsive decisions, such as selling during a dip (for fear of losing more) or buying during a rally (for fear of missing out on an opportunity). This often leads to decisions that go against the natural movement of the market.
5. Market behavior
Markets often perform contrary to what most investors expect. For example:
When many sell, the price may start to rise due to reduced selling pressure.
When many people buy, the price can fall as demand can be quickly met by sellers.
6. Lack of strategy
If you don't have a clear strategy (such as technical or fundamental analysis or using stop-losses), you are more likely to make reactive decisions, which increases the feeling of always being "wrong".
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What can you do?
1. Define a strategy: Use methods like DCA (Dollar-Cost Averaging) to avoid relying on perfect timing.
2. Emotional control: Avoid making impulsive decisions based on fear or greed.
3. Review your expectations: Accept that the market is unpredictable and that mistakes are part of learning.
4. Learn from your mistakes: Write down your decisions and analyze what worked and what didn’t.
5. Focus on the long term: Instead of worrying about daily fluctuations, think about potential growth over months or years.
If you have a solid strategy and patience, the feeling that the market is "chasing you" tends to diminish.