Aint this the truth...
How many people were asking how to buy Bitcoin a month ago? How many are asking today?
Can't fix human nature...
Why to the vast majority of traders and retail investors lose when they get into the trading game?
It's simple really.
They can't get out of their own way.
When something is going up, they want to buy and when something is going down they want to sell it.
This causes people to buy high and sell low.
If you are a momentum trader with well defined rules that you never break, this could end up being a winning trading strategy.
Sadly that is not most people.
This is most people:
(Source: https://twitter.com/feekadams/status/1396113295543881730/photo/1)
They want it when it is flying higher and don't want it when it's pulling back.
If you listen to professional investors they tend to do the opposite.
Just yesterday I heard a very prominent one say, if I liked bitcoin at $50k, I must love it at $30k, and I do.
That's the mindset that makes money over time in investments.
Jumping around chasing the fast money is mostly a losing endeavor anyways.
Find something you like and try to get it as low as possible, that's how the most money is made.
Unfortunately there is no guarantee what those lows will be which is why you must dollar cost average your way in on these dips.
There is no guarantee that the $30k touch in BTC was the low, though I suspect it was.
Well thats the strategy buy high sell low ......xD
Hi, I am new here. I think what you say is completely true. I think this issue you mention has to do with the feeling of not being left out, you know? many people hear about Bitcoin and cryptocurrencies, and just don't understand it, they may not understand about normal finance either, so most likely that they don't know anything about cryptofinance, however, when Bitcoin goes up and they see that smart people who bought when its price was low become rich when its price is high, they feel they have an opportunity in front of them and they don't want to be left out, they don't want to be the only ones without a piece of the pie, that's when they get interested in bitcoin, the problem with this is that it's a very emotional decision and not a rational business decision. So yes, you have a point there.
I can't decide if we recover right away, everything is looking so weak, you would think these prices would be desirable.
I agree. The price action today is pretty surprising. If this was just a dip we really should be bouncing a lot stronger than this...