Be careful of stupid investors

[freightjoe]

The full article is linked to below, an excellent read if you have the time.

The short concluding parts:


Following the “herd,” has always ended badly for investors. In every full-market cycle, there is an inevitable belief “this time is different” for one reason or another.
It isn’t. It has never been. And this time will not be different either.

However, what has always separated out the great investors from everyone else, is they have acted independently of the “herd.” They have a discipline, a strategy and a driving will to succeed.

They don’t “buy and hold.” They buy cheap and sell expensive. They avoid losses at all costs and they deeply understand the relationship of risk to reward.

They are the “non-stupid.”

These are the ones you want to follow.

Not the ones screaming at you on bitcointalk telling you to “buy, buy, buy.”





The full good article: http://realinvestmentadvice.com/5-universal-laws-of-human-investment-stupidity/

[jseverson]

I don't see people screaming buy, buy, buy, though. What people usually say is "buy the dip", which is coincidentally what you're saying is smart. Few people would disagree with you if you tell them that they should buy low and sell high -- the trick is in the timing.

I would argue against not holding, but pretty much every evidence we can come up with would be anecdotal, so I'll just agree to disagree. I would just like to point out that trading is not for everyone.

[Harlot]

If you follow the "herd" aren't you considered as a stupid investor yourself? Because any investor/trader in their right mind won't let their emotions ran over their decisions because they are seeing the market in the state of panic. This is what separates the real investors from the fake ones as they know what to do during these times and they don't follow the hype, FUD, or anything else that will lead them in a bad position. The real investors also are the ones who are taking advantage of these "stupid investors" as they are the ones who are buying and selling their mistakes.

[Haunebu]

There are way more FUD threads than HODL threads if you ask me in this forum. It is natural for people to panic and sell their coins to keep their losses to a minimal which in no way makes them stupid investors as you describe them op. At the end of the day, it is their money that they invested and it is completely up to them what they wish to do with it. Calling them stupid for selling is itself a stupid statement. Better to spread advice rather than calling each other stupid on this forum.

[keycellko]

Buying low and selling high has always been the dream of everyone whether it be bitcoin or stocks. Of course we want profits. But like now, bitcoin isnt moving so that's the reason why people would say buy and hold. Hold means you wait for the right time to sell. Coz if you bought at the time btc was at 11,000 then it went 18,000 thats still considered buying low. But if you bought btc at 11 but it went down to 7,000 or 6,000 if you look at it, selling is not a very good option for you so thats why you hold and wait for the time btc will go back to 11,000 to break even or wait for it to go back to 18,000 by chance.

[GeorgiyBilyk]

very interesting article! as long as there are people who behave the same way as the bulk of people, it makes sense to earn!))) how much I would not listen to the opinion of different experts or amateurs - it still never worked out as they said! You need to have a feeling for growth and fall, as well as at least a little bit understanding of the schedule and the news!

[cryptoroi]

I think buying less and selling high is a good idea. But some people will try to manipulate the market without having clear observation. So some volatility may come and accept it with in depth knowledge.

[Tooevilforyou]

People who are not smart are the ones who FOMO into the market and buy high and then when the market drops they sell low. they have weak hands.

[Caesar Cung]

People who are not smart are the ones who FOMO into the market and buy high and then when the market drops they sell low. they have weak hands.

Worse, he ignored everyone's warnings here, bought with money he wasn't prepared to lose close to ATH, sold at a huge loss and now wants everyone else to buy high and sell low like he did so he doesn't feel so stupid.

All the ones shouting 'HODLing is stupid' are people who don't understand BTC and will not make any money.

It's almost like everyone here didn't tell them to only buy what you are prepared to lose and to HODL because there will be wild price fluctuations. They were warned, they were just dumb and greedy and got their fingers burned.

[swogerino]

People who are not smart are the ones who FOMO into the market and buy high and then when the market drops they sell low. they have weak hands.

And exactly these kind of persons are the sole responsibles for the bitcoin price during recent time. They don't know a damn thing about it yet they have learned that bitcoin can make you money and buy. Of course bitcoin makes you money but you should know the basics of how it works, bitcoin history and price volatility. If these persons take sometime to educate themselves about bitcoin , we surely would have a better bitcoin price now.

[Jating]

If you follow the "herd" aren't you considered as a stupid investor yourself? Because any investor/trader in their right mind won't let their emotions ran over their decisions because they are seeing the market in the state of panic. This is what separates the real investors from the fake ones as they know what to do during these times and they don't follow the hype, FUD, or anything else that will lead them in a bad position. The real investors also are the ones who are taking advantage of these "stupid investors" as they are the ones who are buying and selling their mistakes.

I don't know if you can call them stupid, maybe irrational at times, How many have we seen buying at the top price and easily burned when the bearish trend suddenly take over and the herds are never to be found around the corner? That's the sad part for those investors (usually newbies) who jumped in and thinking that we can go parabolic forever. Common sense will dictate that it will not the case so unfortunately for them once they enter the whole picture suddenly changes. I'm sure that they all learn their lesson in a very expensive way. And I don't think they realized what really happen until they sold everything to cut their losses.

Of course buying low and selling high sounds like a great plan, until you actually try to execute it. This requires an in-depth understanding of the mechanics of the market, something most people simply aren't willing to put the time into uncovering. Simply holding has done well for the last few years, but obviously isn't the optimal way to grow your investment.

Exactly. The old adage has been preached million times but there are still investors who are tempted to sell at the smell of every dip. As much as we want them to HODL, they do the opposite. Well, its not that easy though, really take years of practice not to be affected by a sudden dip or even a major crash.

[ram64GB]

This is exactly what I am afraid of.   I am new to Bitcoin and I still have to learn more about it. Hope there are no scams I will face in the future.  

[TheGodFather]

The full article is linked to below, an excellent read if you have the time.

The short concluding parts:


Following the “herd,” has always ended badly for investors. In every full-market cycle, there is an inevitable belief “this time is different” for one reason or another.
It isn’t. It has never been. And this time will not be different either.

However, what has always separated out the great investors from everyone else, is they have acted independently of the “herd.” They have a discipline, a strategy and a driving will to succeed.

They don’t “buy and hold.” They buy cheap and sell expensive. They avoid losses at all costs and they deeply understand the relationship of risk to reward.

They are the “non-stupid.”

These are the ones you want to follow.

Not the ones screaming at you on bitcointalk telling you to “buy, buy, buy.”





The full good article: http://realinvestmentadvice.com/5-universal-laws-of-human-investment-stupidity/

That’s why the point of every business decision is that you think independently and not just listen to what others do. I always say that this is an opportunity to buy more, however I am also open and well aware of the fact that there might be a consequence to that but I am prepared to garner that loss because my gut and my belief is telling me that I should hold and wait. However that may not work for everyone and that is why it is encouraged that you do your homework yourself and make a decision for yourself

[nidacoinlove]

They don’t “buy and hold.” They buy cheap and sell expensive. They avoid losses at all costs and they deeply understand the relationship of risk to reward.

WOW! What a wonderful information have you revealed to us. Like we don’t know kiddo?
I really didn’t get the purpose of this thread, for what reason it has been created? By the way how does it happen without HODL to buy it cheap and sell it expensive?
Yes for sure there is a great relationship between the risk and reward. Every investor has his own strategy and accordingly he knows better when to drift and shift. This is impossible to sell at high price without holding but you need to be intelligent enough to recognize and judge the movement of all the variables involved to effect the market upwards and downwards. To be successful you only have to work on these variables.

[wanimulyo]

The best strategy to earn profit in cryptocurrency market is “buy low and sell high”. The work is not that easy. To buy bitcoin at a low price and hold for price one should gain knowledge about this and will have to be much updated about the market condition and do google regularly to learn more about bitcoin.

yes, its right. buy low and sell high not easy. you must gain knowledge about this and know the market condition.

[1Referee]

I don't care about others, I just combine holding with some occasional trading to maximize the opportunities this market offers me. I use seperate stashes for both purposes, where the holding stash won't ever get touched, but just filled up further with profits from trading this market. I was more of an active trader before the massive bull run, but took a few steps back due to the state we're in, because it's very expensive to buy coins back in current days. If I suffered a loss from trading of like 0.1BTC back in the days, I could just buy it back for $30-$50, where currently it would take +$700 which is exactly why I no longer actively trade. Currently I'm just focusing on repetitive patterns within an obvious range, and it's working out well - it's pointless to push yourself further in a market like this, because overestimating youself can cost you badly.

[w5pn73]

So everyone who bought at 7000 will sell again at 14000 and we will repeat the cycle? 

[Tipsters]

The full article is linked to below, an excellent read if you have the time.

The short concluding parts:


Following the “herd,” has always ended badly for investors. In every full-market cycle, there is an inevitable belief “this time is different” for one reason or another.
It isn’t. It has never been. And this time will not be different either.

However, what has always separated out the great investors from everyone else, is they have acted independently of the “herd.” They have a discipline, a strategy and a driving will to succeed.

They don’t “buy and hold.” They buy cheap and sell expensive. They avoid losses at all costs and they deeply understand the relationship of risk to reward.

They are the “non-stupid.”

These are the ones you want to follow.

Not the ones screaming at you on bitcointalk telling you to “buy, buy, buy.”





The full good article: http://realinvestmentadvice.com/5-universal-laws-of-human-investment-stupidity/

It is very true that a successful person is not a dependent person. He has his own characteristics, traits, and skills that is set for success. You cannot fully achieve success if you don't have a blueprint or plan for it. The plan involves getting to the highest point without experiencing significant amount of losses. All those people who encourages you to buy and the ones buying it are considered the unsuccessful person because they use ignorance instead of strategy on their way to success.

[Farma]

The best strategy to earn profit in cryptocurrency market is “buy low and sell high”. The work is not that easy. To buy bitcoin at a low price and hold for price one should gain knowledge about this and will have to be much updated about the market condition and do google regularly to learn more about bitcoin.

yes, its right. buy low and sell high not easy. you must gain knowledge about this and know the market condition.

many people think it's something easy, because it has an easy theory. as others feel, working harder than saying it. well, we have to think of really good steps before we invest in something we think will be profitable in the long run.

[Kahoy01]

This article was a good eye-opener to the people who are planning on investing on the cryptocurrency. The article clearly states how it is unhealthy for both the investors and bitcoin itself for these investors to exercise panic selling when the price was dropping, I'll definitely recommend this to people who are planning to invest as well as the newbies in the bitcoin industry.