When Bitcoin’s price drops by about ten percent, a lot of people freak out and dump their assets because they're scared of losing money. Then, just a few days or months later, when the price rises by fifteen percent, these same folks rush in to buy, hoping to cash in. It's kind of funny but that’s how it is. Many really only care about quick profits, which is why they miss out on real gains with Bitcoin. If you’re just chasing immediate returns, you’re probably not gonna do well in this market. Bitcoin has been really volatile lately, dropping over ten percent, and some folks are panicking who haven’t built enough trust in it. But mark my words, Bitcoin will bounce back stronger soon, and all the worried investors will come rushing back to scoop it up.
How investors react to market shifts
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SwiftPixelFull Member
Posts: 130 · Reputation: 572
#2Mar 7, 2017, 02:15 PM
A lot of people who are using this approach of fast profit-making end up not making profit at all, then sell when they make value of what they purchased and buy when the market is bouncing back with hope to recover all the losses but still end up selling when there is a change in the market. Unless such a type of person changes into holding, even if it's for an average of a few years, it will be hard to actually see that profit. Some people are not just short-time traders, but they are not emotionally ready for the market.
Very crucial to be adhered because at every single step one takes over sudden change of prices in the short term always results to regrets for those holding in the short term.
This quality of message is best to be directed to newbies who are easily manipulated psychologically, especially when the market directions is going their opposition.
Traders who are trading in the expectations of making quick profits also have to be let known about the risks of holding in the short especially when tending to study the price.
You want the honest truth many of us are after the profit of this bitcoin and if we have our chance we will certainly be happy to see bitcoin pumping Everyday except when we need to actually buy more. But lets be realistic there is no asset or anything that can continue to go up with down turns and this why I usually say asset like bitcoin ard for the patient and its the reason why most rewarding investors in bitcoin are the patients who hodl very well for a long period of time.
Yes the price of bitcoin has been down for a few days but its not even upto 5% dump because lets be real bitcoin volatility has actually been reducing that you dont see bitcoin dumping to 10% in few days now. This are numbers for many weeks or probably months. This also applies to the pump too, so if one is looking for get rich quick asset then bitcoin isnt one for that
proto_viperFull Member
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#5Mar 7, 2017, 04:51 PM
People have tendency to panic and react to fluctuations that they notice in short term, especially if they do not understand that this market is not just lottery ticket but groundbreaking financial network. I think to treat bitcoin as trading game other than long term savings is a financial trap. This asset is supposed to be one that will pay off for patients who have persistently added to their holdings in midst of all turmoil, and viewed market over 5-year window. When recovery occurs and price topples new highs in next few months, same people who have been selling in panic will once again be rushing back to buy. If you want to be really rich, learn to walk instead of rushing for rescue at bottom, of Cycles of Bitcoin Price.
People all want to gain profit, and it's nothing wrong when they want profit. It's actually very good because it is an attractive hook for getting new people joining this market with new capital inflow that are all necessary resources for market growth in trading volume, and price will be benefited. However, as always, capital has inflow and outflow, while people in the market are not the same, with different strategies and actions, they get different results. Unfortunately, most people get losses while the minority get profit, but it's a basic fact in all markets, not only in Bitcoin market.
With Bitcoin market that is famously known as volatile, dropping 10 percent is not too much and if people learn about about Bitcoin market history, they will be better prepared for such price falls.
Bitcoin's historical corrections.
It's also helpful if they learn about market psychological cycle.
The psychological pitfalls of a market cycle
SilentGuruSenior Member
Posts: 432 · Reputation: 1445
#7Mar 8, 2017, 01:14 AM
It's called Fear of Missing Out and believe it or not there are a lot of people doing that. Warren buffet said to buy low and sell high, coming from someone who managed his money and grow it into hundreds of billion, to go against that principle is foolishness but because human's psychology works in a strange way the thing that you desribed happened.
I've been seeing the market for enough time to realize that demand changed with market's fear sentiment. When there is a large institutional order block dumping their bitcoin, the retailers follow and also the opposite.
In short, when market is bearish and everybody is selling, maybe you're already too late to mitigate the dump, just hold it.