Prologue
If you open 90 percent of the chats and look at a bunch of memes, you can identify a pattern and find one common situation:
"If I bought - the coin falls, if I sold - the coin grows." This meme is sent to each other by important cryptos, and 90 percent of market participants describe this situation to each other. Is this a global Bitcoin conspiracy with alts? 😀 No. This is a perception error that results from incorrect handling of emotions.
Chapter 1
A new market participant, still with a full deposit, a good mood and a full tank of optimism, having heard the story "my friend bought PNX Coin and became a millionaire the next day", pours his entire deposit into one coin, sometimes into two. Immediately or closer to the weekend, he sees a "huge minus" of as much as 2-5%. The colors thicken, the mood falls, and the investor opens YouTube or Telegram, where, of course, he is recommended another coin. The market genius either immediately or after a short time merges into a small minus and buys the next coin. Naturally, due to the specifics of this market, the coin that he dumped during the drawdown begins to recover, and the new one that he bought falls. 😀 Having repeated this action a couple of times, the cryptocurrency understands that something is going wrong, and begins to gradually delve into it, but already with a deposit of about -10%.
Chapter 2
Inspired by the stories of another blogger about how someone simply holds and waits out the minus, our hero makes the next purchase. He no longer pays attention to the first drop after the purchase and even waits for the first growth of +10%. The businessman takes a screenshot of PnL, calls his friends, posts his achievement on Instagram and climbs into Google to clarify the price of air tickets to Dubai. Because with such skills, he belongs next to Morgenstern and Durov, living in his own villa.
Chapter 3
The coin grows because this time the person was lucky and the stars aligned so that somewhere there the hypothetical Powell prophesied positivity and the market reacted. The hamster, who has already become an expert, watches the growth, also watching the growth of other coins, which, by the way, give more interest. Naturally, YouTube is open at the same time, and recommendations are already being made for other coins. The coin sags a little and returns to the purchase price, and the rest continue to grow. A brilliant decision is made to sell at zero and buy a more promising coin.
That's what the old man did: he sold for zero and bought back a promising token that was showing good growth. Option 100%, and that same YouTube billionaire even called this asset the second bitcoin. Having stocked up on the coin, which has given +40% over the last 2 days, the poor guy is watching a rollback. Of course, the first 20% of the fall does not scare him, he is already experienced, so he sells only for -40% of the purchase price, when his nerves can no longer stand it, and the blogger-mentor has already forgotten about this coin. There is no more support from YouTube.
Chapter 4
Motivation is zero, about half of the deposit is left, dreams of Dubai and being next to Morgen have evaporated. Crypto SCAM.
Epilogue
Don't waste your time on nonsense - study, develop. The crypto market is a job, not a casino.
(Always relevant)
The numbers change, the stages change, the psychology remains.