Its a very common phenomenon that when the market rise then many of us get overconfident that it will rise further they get greedy. The reality is that we can't predict the market completely however based on the technical analysis we can have a better understanding.
The market has been doing good this year and there was hardly any big correction in the last couple of months and because of this many investors and trader God in overconfidence that it will go beyond the US$70,000 price mark. Bitcoin has made its all-time high with almost US$65,000 price which is quite high and it was expected to cross it and make it 70,000 in coming weeks. Now with the recent correction in the market, it has gone down to 30,000 and currently trading at around US$40,000.
It's a good practice to keep on booking profit from time to time whenever there is a good price and I do it quite frequently. A few weeks back I took out some profit from coins like light coin and WRX but because things were looking to be bullish on BitCoin so I thought of holding for some time and take out when it goes even at a higher price. Booking profit for me is not like selling and taking out the money but this way I try to add more quantity which helps me to increase my overall holding long-term. Wish I could have sold some bitcoin when it was around $60,000 and even if I am now by then also I would have got more than 30% of what I hold now.
I follow this strategy but sometimes because of overconfidence I also do mistakes and this is one of the cases when I missed the opportunity. I follow this practice with five as well because when I see there is a price pump then I sell off some and place a bet with less price bid of 10-15% and this helped me to get more coins with little effort. I know that this time I have done a mistake which caused me to lose some profit however I am not at a loss because I did not the sale of anything and I will still be holding for the long-term.
There are two ways which people can follow to hold for a long term:-
- We can keep on holding everything that we have and never sale of anything unless our goal is achieved and it could be for the next few years depending upon everyone's plan.
- The second method is to buy some part of it when you think the price is quite high and keep that profit aside to get another dip entry which will help to get more coins and will increase the overall holding.
I follow second to start the more and there have been many instances where it helps me to accumulate more value of coins by booking profit and getting another dip entry. Again as I mentioned that I can also complete the mistake and this time I did because of overconfidence in the market however it is again one of the learning which I will use with my further plans and strategy.
Some of my friends who have entered the crypto market in the last couple of months and I have referred them on the exchange. They have purchased quite a good number of coins and the plan was to hold for more than one year but now when the price is down they are a little worried that if it gets down further they will have to be at a loss and I am trying to make them understand that there is nothing to worry about if the goal is for the long run. Those who have purchased BitCoin at its high price in 2017 and 18 have also got nice appreciation on their investment which "multifold add in this bull run and as of now there is no clarity whether the bull run is over or not but if one is able to hold for the long and do not sell when prices down then for sure he will not lose anything.
"We don't lose anything unless we sell" and this is what I strictly follow with my investment. People who invested in the last bull when the price was at its peak and still here then are well aware that how it works.
I take it as another learning for me and will try not to be overconfident (however it happens because of human nature) and will try to book some profit without getting emotional or greedy. This was the best opportunity to get a minimum of 30% approx value of coins added to my portfolio and now my portfolio is down with a similar percentage.
Its the crypto market and I have seen so many instances like this happening here in the last 3 years so I know that it will happen again and since I believe in bitcoin and crypto so nothing to worry about because sooner or later I get the opportunity again.
Thank you so much
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Yeah no one can have 100% accurate predictions all the time,overconfidence kills the investment of many traders,the overconfidence makes them to take personal decisions on the market without even verifying if the decision is right or not..
overconfidence and emotions make things bad here and we should not do this but still, sometimes it just happens.
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Yeah sometimes we cannot easily control the emotions during trading especially when the emotions have overwhelmed us already..
Well, with crypto, that is always possible, but those who correctly identify the pattern gains max - they are traders. Unfortunately, none of them is right all the time.
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yes, its possible.
I agree that no one is right all the time here but people who identity things better, get more profits certainly.
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Hi @alokkumar121, your post has been upvoted by @bdcommunity courtesy of @rem-steem!
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