How the Mindset Moves from Investing to Trading

[Saltysugar99]

Holding is difficult, and the temptation increases when the price rises, this is the most common problem seen in reality. Many people are afraid when the price falls, but people make mistakes on the upside too. When the price starts rising, the thought of getting profit enters their mind. They think of selling it now as a profit. When the price falls, they decide to buy it later because more profit will come. This is where investment gradually turns into trading. Because decisions are no longer driven by a plan, they are driven by price mood.

Someone made a stack in 6-12 months by doing DCA regularly. Then the price doubled. Then two thoughts come to their mind. One is to lock in profit, the other is to make more profit. They start trading in the middle. It becomes a matter of selling today, buying again tomorrow. But the market did not follow his rules, he sold, the price went up even more, then by FOMO and re-entered at a higher price. After a few days, when the dip came, he panicked and sold again. As a result, at the end of the year, he saw that his BTC was lower than before, but he wanted to be smart. This phenomenon is so common that most people actually destroy their stack by trading.

Why does this happen? Because if there is no holding rule, people get stuck in their own stories when the price goes up. Set some rules in advance so that the price does not make you dance. You should never think about the trading mentality in the accumulation phase. If you are still building a stack, then your job is to buy regularly. Do not get out repeatedly.

Cash reserves are different. Many people want to take profits because they are in cash pressure to pay for life expenses or buy something big. If the reserve is in order, this temptation is reduced.

Holding in the long term is difficult, especially when profits are seen with greed. Because profit tempts people to be smarter, and trading starts from that greed. But the most common mistake in Bitcoin is to make more and end up with less. So to avoid trading, make a system in advance. Regular DCA, separate reserves, write down goals, and make sure that decisions do not change with price-mood. With this setup, you will not be broken even if the price rises, and you will not be afraid even if the dip comes. You can just keep stacking.

[Mhizlove]

Okay I think this is not about the market but the way humans behave like is about human behaviour because once people see how the market moves they do let their emotions to control decisions and this will make them abandon the initial plan that they have only made not just that once the profit keep coming that's when greed enters and lastly when dip comes people will panic or be afraid.

If there is no enough cash backup and the rules that been made isn't clear this will made alot of people overtrade and at the end it will only reduce it  rather than growing it. The only thing I will say is that when I investing you just have to be consistent and have discipline because it's the core thing when it comes to investment, rather than trying to play smart with price changes or market movement

[Hypnotizer]

Holding in the long term is difficult, especially when profits are seen with greed. Because profit tempts people to be smarter, and trading starts from that greed. But the most common mistake in Bitcoin is to make more and end up with less. So to avoid trading, make a system in advance. Regular DCA, separate reserves, write down goals, and make sure that decisions do not change with price-mood. With this setup, you will not be broken even if the price rises, and you will not be afraid even if the dip comes. You can just keep stacking.

Discipline…

That’s all it, People like that often lack discipline and that’s why they try to time the market when they see raw profit in their investments, with proper discipline towards archiving investments goal even when you’re tempted by greed about the price and the possible profit you can get, you’ll stay grounded and you wouldn’t fall for it.

Actually since we as humans are of somehow greedy, it isn’t really that bad if someone decides to take small profits from his investments and buy when the price goes down, but in no occasion should someone who does so FOMO-buys if the price keeps rising…..he should have a target price to re-enter the market again.