HAVE YOU NOTICED WHAT YOU CHASE DOESN'T BENEFIT YOU?
If you're looking for an explanation as to why most of the time your expectations on a trade seem to always fail, you're in the right place.
Here's why.
In the crypto market, the most volatile crypto tokens have the highest demand and are the most talked about due to its potential to provide high profits. This can be proven by just simply looking at tokens such as #RARE, #VIDT, #SUN, #BANANA, #POPCAT, #ALPACA and many more. However, how do we really identify the chase that would hurt our capitals?
Here's how.
In the initial surges of a particular token especially after its listing in Binance. The tendency is it will gain more than 10%-20% increase that will then be a ping to traders as a signal for possibly rally. As this particular token gets traded and talked about, more and more traders joins the fray, a struggle to get more profit. As more traders continue to hop in with the hype, the tendency for the token's price to increase will intensify as greater demands will be present.
This is where chasing the price doesn't benefit almost every trader.
First, the ones who would most likely benefit are those who entered at the bottom and once it reaches a surge of more than 10%-20%, they'd already gain a whooping amount of profit. Second, as the chance for higher prices continue, many would lose their funds in the process as the hype would lure many to enter at an inconsiderate price that is highly likely to rekt their capitals. Finally, once the hype surrounding the token being chased is over, it will eventually have its wings cutoff and after carefully reviewing, many would be trapped at the peak of the clipped wings of such token.
Stay wise, trade cautiously.
