As Soon As You Buy, the Price Will Start to Fall. As Soon As You Sell, the Inevitable Rise Will Begin! Why? Murphy's Law Maybe?
I'll explain why this is so, it's very simple!
This phenomenon is a classic example of cognitive distortion, when a person feels that the market is working against him. In fact, such situations are often explained by psychological and market factors:
1. The crowd effect. Most people buy on hype and sell in panic. This leads to the market being able to correct at precisely those moments when identical decisions are made en masse.
2. Difficulty of forecasting. The market, especially the cryptocurrency market, is extremely volatile and unpredictable. Even experienced analysts make mistakes when trying to guess the price movement.
3. Algorithms and big players. Not only private investors participate in the game, but also institutional players, trading bots and hedge funds. They analyze mass behavior using complex algorithms and adjust their actions to maximize profits.
Billions of dollars are spent annually to study how most participants in financial markets, including cryptocurrency, will behave. There are specialized institutions for this purpose, such as:
🛑 Quantitative research centers developing mathematical models.
🛑 Psychological laboratories studying the behavior of investors under stress and uncertainty.
🛑 Data analytics companies using machine learning to predict prices.
All this research helps the big players stay one step ahead. Therefore, it is important not only to follow the market, but also to understand its fundamental logical mechanisms.
💡 What should I do?
How many times a day do you check the price and look at the chart? Every time you look at the prices, you start thinking like the crowd. Wait for the price at which you plan to sell, do not be too greedy. If emotions are off the charts during the correction, do not go in or temporarily delete all applications related to cryptocurrency and do something else, this will help you think sensibly and be firm in your decisions!
Don't be like everyone else, know more!
