Why is it difficult for investors to buy and sell when they need to?

The Truth Few People Talk About When Investing

Those of you reading this may have been in the crypto market for a few years or just a few months, the price increases every day are making you a little nervous and hard to keep yourself from seeing the price of a. to check couple of days, times a day right?

It is an emotion that few people tell you before entering the market, our emotions rise and fall depending on the market price, although logically it says that this is a volatile market. strong, but in fact the emotional response itself is stronger than the market volatility.

Maybe you look outside and see that people are making money too easily, bought 20 30k BTC a few months ago, so far the profit has been calculated in times, that is, with BTC but with other Altcoins it can be calculated tenfold. But the truth is, nobody is going to tell you what it feels like when the price of the coin you are investing in fluctuates. And people often make the worst decisions when their emotions are high. As you know, there are only 4 actions in any financial market: buy, sell, hold and stay out. Why is it so difficult for people to make an accurate decision for the above 4 actions based on the market signals because you have to do the extremely difficult thing to fight your emotions.

Why do people often find it difficult to make financial decisions?

Making decisions is always a difficult thing for anyone in all walks of life, not just financial decisions, taking your girlfriend somewhere tonight is also a difficult decision, isn’t it? ? ????

With a dollar amount of money, almost anyone in the world can easily make a decision, but increasing that amount to $ 10 decreases the number of people who have the opportunity to choose, and so on, increasing it to $ 100 Then to $ 1,000, $ 100,000, the number of people in decision-making drops dramatically because most people make big decisions that add up to hundreds of thousands of dollars when buying houses and cars. You can clearly remember financial decisions that are worth more than 10,000 in your life, right?

What if you invest a few thousand dollars in crypto and the market is doing well and it can go up 10x 20x and become a large amount, or invest $ 100,000 in coins, then your account is millions of dollars, you think? can it sell easily? It is very difficult for someone to make a decision on a large amount of money that they have never practiced for before.

I know you have experience buying things worth thousands of dollars or more, like cars, computers, phones … but the big difference is that when you buy these things you have time to distribute the news, You are discussing with loved ones, sometimes you go to YouTube for a month of research about the laptop you want to buy and when you buy it nothing changes, the laptop is still in that store and still is same price. But unfortunately the financial markets don’t work that way. The reason for this is that the price changes in the financial markets are very quick and can be instantaneous, for example you can buy BTC for 20,000 last month and just almost 2 months later it has doubled in a short period of time. In short it has gone up 100% and now you have to resist the urge to sell, most people can’t because they don’t have enough repetition and practice so they can’t resist the urge to sell at 40,000 and they claim they made a 100% profit and are happy with it.

But you know, only 100% is not worth the effort, the time and the risk in the crypto market, in the past year all top coins have grown by a few hundred percent to several thousand percent and will continue to increase this bull season. If you want to make 100% profit, you can stay in the stock market with much higher security and stability, don’t risk getting into crypto where you can take a lot of risks that can be lost and you don’t have to worry about who owns your stocks takes in the stock market and steals all your money. This security is the reason why you won’t get 10 to 20 times the returns as the crypto market and of course a new asset class like crypto still has plenty of room to grow.

Resist emotional resistance

People often say buy BTC for 6k and sell it for 60k sounds great in theory, but in reality no one is telling you how painful it is to feel when the price goes up or down. Don’t worry about buying right down and selling right up because nobody can.

No one can buy lows and sell highs consistently and consistently

I know the feeling that when you buy the price drops by 5-10% and that painful feeling makes you no longer dare to buy, but you won’t know exactly where the bottom to buy is the lows it will be will not be an all-time low, but it will be near the low, so average prices during a bear market are a great way to hit an average low, and when the price goes up you can’t tell where the high is, but you can sell all at once, there will be a couple of orders that will sell you exactly at the top price but that’s just luck, you can’t apply.That goes on for a long time and is consistent, so if the price goes up, average the price too because as soon as the maximum value is exceeded, you know that it is the maximum value, and of course we will not sell too early. To avoid premature profit-taking, I will go to another A Write articles about the signs that the market is telling us that a top price zone appears depending on the size of the portfolio and financial goals. The different people through whom you make the decision to sell at a profit, feeling that the sale is over and the price keeps going up is just as painful as buying and the price goes down, the best way to make a profit is to sell while the price is rising, not when the price is collapsing and you are panicking to sell. And to be able to do that, you need to practice this many times, if not many times, when the opportunity presents itself, you cannot act smoothly and effectively. You know, your one-time purchase price isn’t as important as the average price of the total amount you buy for that coin. The same goes for the average price when you sell your coins. At the top, no one can take winnings, if they do it is just luck and you cannot trust all of your winnings to luck.

The risks of investing in the crypto market are invisible and difficult to see if you are not really involved. That is why bull season is when a lot of people have to sell their homes to pay off their debts because they don’t have the emotions of being able to manage large amounts of money, when the price is volatile and it is easy to make wrong decisions, you may think That it is very difficult, in a short time, you can have it, no matter how smart and agile you are in real life, enough emotional capacity to manage a large account, especially the money you borrow to invest it You can’t hold this coin 2x 5x 10x because your emotions are too strong, strong enough to make bad decisions, the same goes for a low price, no matter how many books you read, how many investment videos you watch and Dozens of articles like this one, it won’t help you really understand and improve the market’s emotional skills until you respond to it and develop your own emotions them every day.

Not many people in this world know how to conduct a large financial transaction. So, if you want to be able to make a quick financial decision, you need to practice it and how to do it. If you don’t have a large catalog yet, catalog? The way to do this is to practice with your portfolio now, because selling and taking profits as prices go up is not easy emotionally and requires constant practice.

Editing and synthesis.