Zoom Out Peeps
I want to share a very important concept about panic buying and panic selling. The truth of the matter is that over ~90% of all short term traders lose money, not make money!
You see, an inexperienced trader looks for hype cycles and parabolic moves without the slightest understanding of what they are buying. I’d argue that they aren’t buying an investable asset at all, rather they are gambling for higher price action. Now there is nothing wrong with price speculation bets, but expecting you can keep doing this and actually win more than one time is the same as not understanding how Las Vegas has some of the most expensive and glamorous hotel/resorts in the world. Here’s a hint, nobody wins in Las Vegas…NOBODY. They either get you at the slot machine, on the tables, in the clubs, at the bar, or during a show. This analogy is perfect because you might get lucky every once and awhile speculating on some dog shit DOGE COIN pump and dump, but in the end they all go to zero.
Pro Tip: If you don’t know what you’re doing, just buy Bitcoin and never look at it again for a decade.
Crypto is growing at an incredibly fast rate and there are many people who will become millionaires over the next 6 to 18 months because of it, BUT buyer beware! Getting sucked into The Altcoin Forest and trading leverage (margin trading) is a one-way ticket to REKT CITY!
Pro tip: Never Ever Ever…trade with leverage!
Just yesterday we saw a massive liquidation of Noobs that are playing with fire, aka Leverage trading. Hence the panic selling occurs because too many are gambling and not investing.
Pro tip: If you have a hard time sleeping at night, then you have too much money in the market. You will surely lose because you won’t hold a winner long enough to realize the asset appreciation and then panic sell a short term pull back on a shit coin you banked your life savings on.
Summary
Gambling is unbelievably fun and addicting. What’s even more intoxicating is to take $1000 and use 25:1 leverage and instantly have $25,000 to trade with! This all sounds amazing until the market moves just 4% down and instantly your $1000 is liquidated!
Take a longer term approach to investing and get rich slowly, rather than gambling your life savings away because some YouTube “Expert” gave you an affiliate link to BitMEX to trade with.