It is easy to smile when things are going well.
But what a difference a day makes for some people. Markets turn red for a few hours, and the elation turns to despair, and the confidence melts into fear.
Market corrections.
Expectation corrections.
People tend to underestimate how quickly we get accustomed to conditions, and this is even faster when times are good. We rapidly swing into a sense of entitlement, even when we logically know that we don't own and have limited influence, if any at all, over the markets. Yet still, we believe that we get comfortable and settle in for an upward ride.
A day or two ago I was getting excited messages of price love. Today, sullen messages wondering if the relationship is over.
Maybe it is symptomatic of the polarized culture today, where we are more often emotionally on or off. Instant gratification mentality. We are used to getting what we want on-demand, which has resulted in us becoming more demanding.
Beasts of consumption.
We are likely all emotionally affected in some way by the markets, but similarly, it might be about volatility. While some people swing wildly between red and green daily, others have more of a zoomed-out perspective, less peaks, less troughs, more of a smooth wave, never bottoming out, never hitting peaks.
I guess ultimately, there shouldn't be too much "excitement" around investments, but rather, just the more objective management of them. When they are managed well there will still be ups and downs, but all it affects are the options available at the time, and the decisions to be made as to which to take. Is it time to sell, hold, buy? Take profits and convert to something tangible, or reinvest into something else instead? And there are no perfect decisions.
Mistakes get made.
Bought too late. Sold too soon.
For me, I think experience has brought a more pragmatic view of mistakes, making the "emotional recovery" shorter. And, since I am a holder, up or down is just a question of time. My position is that ultimately, the crypto markets will be up, so while I might make errors today, eventually it won't be that bad. Sure, hindsight can make the decisions look very bad indeed, but foresight is always imperfect. Sometimes lucky that our expectations were met, sometimes not.
Often, when people get lucky I the markets, they put it down to the trading prowess, and their amazing knowledge. But, what they forget is that while they might buy or sell the right thing at the right time, they probably have no control over what they are buying, or those who manages the business of it.
Or mismanages the business of it.
The small correction today wasn't much to write home about, but it is worth taking note of how you feel when you see red on your PnL - even if it is just a twinge, it is an indicator of emotional impact. At 10% it feels one way - at 40% another. And, it is also worth considering that when it is 40%, what options are available - did you sell the day before and are ready to gobble up the dip? Or did you buy the day before and are now in a holding pattern, waiting for the clawback?
Is your stack of tokens going to grow, or remain static?
I find it all very interesting as to how we operate in different environments and under different kinds of conditions. But perhaps the most surprising thing is that even though we are very predictable and most people think they know themselves, most people also think they know how they will be affected by market swings. Yet, if we did actually know this and understand it, why aren't we prepared? Because if we were prepared, we wouldn't have the polarized volatility, the heartbeat monitor reactions. It would just be a smooth wave.
Another day, another dollar.
A day later, a dollar lost.
It is easy being green.
Should it be easy being red too?
Taraz
[ Gen1: Hive ]
Posted Using InLeo Alpha
It's not about the gains and the losses, it's about who I am as a person. Am I the prescient wizard/alchemist who turned lead into gold, or am I the pathetic loser who worked hard for money, and then just lost it gambling, like a chump?
Man, Blackrock has a lot of influence over my self-image right now.
It is is interesting don't you think? The inevitability of the price, is still going to depend on the same micro set of organizations to pump it. The fact is, ordinary people who would benefit, just don't have the wealth to spare.
👈
👍
You definitely have a penchant for red. Is it a political statement?
No. I'm not the political type. Not a statement either. But if I wanted to be creative I could say: Everyone shows a picture of the outside. This is a picture of the inside.
It is better than a dick pic.
PS I really like the photo up there in your post.
You would know. lol
Walked right into that one buddy.
I can never get the angle right.
This is why the stock market isn't for everyone, and why having a plan for one's trades are important. This is even more the case with crypto, where price changes are bigger and faster. The people that expect BTC to rise after the halving or expect >100k price are just chilling right now even with the dips. They might be buying some because of the lower price. Those that have no target range are the ones worrying right now, and they should make a plan for themselves.
It is interesting how people expect the upside - but think the downside should be like traditional stocks.
I guess it's a combination of positive thinking and wishful thinking. They should be comparing it more to penny stocks instead of blue chips.
Well since volatility is a prime factor to look out, early or late really isnt anything that matters or to be considered as something. Those who loves to hold can stay back for the time he is comfortable with.
There is no fixed law or rules to play with, in crypto own laws are greater than any morals or precepts.
Being red or green is just a personal choice and own imposed laws also.
But, out of buy or sell, nobody should feel hesitant of being loser for a moment. Because, win-lose is just inseparable part of it and that carries on alongside the journey.
In a world where people have decreasing emotional control - they should expect to be affected with more volatility.
I think the only thing that surprised me about the correction today is how quickly it recovered. Quite impressive.
It was an engineered drop- shake a few hands, see what falls out of pockets.
An investor should know that nothing can be in uptrend forever, there correction is need. I think that putting a limit and taking profit is reasonable. Then see what's going on.
The thing in crypto is that the gains some assets might see in a few years, can be seen in a few days. The turnaround is very fast, and people act on it as if it has taken a long time to get there, and will take a long time to fall. At any moment, 30% up or down is possible.
Looking at the chart constantly just feeds into the FUD/FOMO. I think they need to look at the chart over a longer period. BTC is up and I would try to follow the trend that shows. Personally unless they are selling/buying, I don't think they need to be so fixated on what the price is.
When in doubt, zoom out, right?
It really is about resolution - in a couple meaning of the word.
Market growth is impossible without pullbacks. I don't care about today's red color :)
And today's green?
Doesn't matter either. I'll get excited at new highs, 80k 100k etc.
An investor should always know that there will be some reds in the market and that’s why I always wonder why people wail when the price is facing the downtrend
Isn’t this what we signed up for before engaging in cryptocurrency?
I mean it's just perfect seeing you this happy and the greens showing in this content. It's not easy to go green this days but if it worked out for you. I guess you shouldn't keep the joy to yourself alone. I just appreciate you sharing this joy. To others it might have a positive growth in their emotions as well
I find myself enjoying these finance-related posts because they are so relatable. I think everyone is affected by the ups and downs of the markets, including myself, but over time, I have grown to accept that it's nothing bad feeling happy or sad because I am human. For me, I think it's one thing to be emotional, but it's another thing to be objective, which is why I think DCA helps because it takes away part of the subjectivity.
I thing luck Plays important role in life along with prayers. Being a positive person brings positive things towards us