Panic causes you to sell at the bottom, and greed causes you to buy near the top

in Project HOPE3 months ago

“Panic causes you to sell at the bottom, and greed causes you to buy near the top.”. Stan Weinstein

Hello community, good start of the week to all, my best wishes. I want to talk about something very particular that in general terms I can see in many people who enter the world of cryptocurrencies, largely attracted by the desire to "make quick and easy money ", which leads them rather to lose money, which is the opposite of what they expected when entering this financial ecosystem.

When we have some years in the world of cryptocurrencies we know that the price rises and falls sharply are normal, it is one of the main features, it is what is called volatility.


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Well, it is very important to know this, to know that it is a reality of cryptos, to avoid making the mistake of wanting to buy when it is at the highest price, and sell when there is any drop in price, which both are what can lead us to losses.

And it is easy to visualize this scenario, the price of a cryptocurrency starts to rise, very quickly starts to rise in price and attracts the attention of many people who buy when the price has already risen a lot, and thinking that it will continue to rise, some people make investments, buy wildly and the price begins to fall, well below what they have bought, panic and sell.

This is something that happens very frequently, unfortunately. The issue in these cases is that the volatility expressed in these sudden price movements, often make the less experienced, assume a setback or "correction " as something that will not stop its decline, which makes me think, from my little experience that simply this trading is not for everyone.

Much less if we consider that most people are accustomed to the traditional, in which the values of the different currencies do not vary with such intensity. However, and fortunately, more and more people are joining the cryptographic world, which will allow that in the near future, all this that is currently complex to understand for some, will cease to be so.

Before investing we must always study well what we are going to buy, the project behind each coin, and know that not always the profits can be green from one day to the next....

Thank you very much for reading my post.

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It is better to do it the other way around, buy when it is down and sell when it is up.

But for this, you have to study the patterns and do deep research.
A good idea is to educate yourself in trading and then explore the methods, an attractive option is to use the stormgain app that offers you a free trading account with which you can make operations in the real stock market without investing your money, this helps a lot to earn experience and prepare to enter the world of trading, the Filipinos I know recommended this method and it seems to be a good idea in which you do not risk anything and learn.

Hi @reinaldoverdu
That's the ideal, always start trading on demo account, to test strategies, before moving to the real one.

I agree with what you say, we must be patient to make the best decisions, this is a volatile system of highs and lows, where what we must do is to think and investigate calmly to take advantage of the best opportunities.

Research is always a necessary step before investing or trying your luck with other activities.
Thanks for commenting

Hi dear friend @josevas217

"make quick and easy money ", which leads them rather to lose money, which is the opposite of what they expected

My neighbor has a week in the world of trading he accumulate 100 dollars of profit but in one day he lost 150 dollars, so that world is not easy
regards

Trading is not gambling, it is not about betting. It is not easy, but it can be profitable. By studying it.

Hi @josevas217
I agree with you, the cryptographic world is very volatile and to invest you have to study and analyze very well.
Regards.

Volatile 100% is the characteristic of cryptocurrencies. And it's not something that everyone likes.

Quite true, crypto is not an over night money scam, it takes time and patience. Nice read

from my little experience that simply this trading is not for everyone.

Trading is for people who can control their emotions. One should make trading a boring process. When you study market, create a plan and carefully execute it. There is no room for positive or negative emotions. This is why I haven't got into trading yet.

Hi @cryptohumters
Two vital things in the trading world, emotion control and having.a plan. That is necessary. Thanks for commenting

This is so true... just have to laugh! But, it is so hard. I want more, more more... but, and feels tempting to buy more all the time... Hard to deal with all this greed!

Greed is as dangerous as fear, but, knowing that cryptos are going to go up in price, it is difficult not to be tempted to buy, and if we have the economic availability to do so, all the more reason to do it.

That is so true... BUt still, they will for sure go up - in the end. But, we are all afraid of buying Hive (or Steem) right now, and then we will see them fall 100%... after all, we could have gotten twice as many tokens if that would happen! Hehe...

 3 months ago Reveal Comment