High fives everyone! Bitcoin broke $60K for the first time (and hopefully the last time ;D).
Some look at All Time Highs as the perfect time to take profits.
The thinking goes:
- Time the market by selling at the ATH
- Let the price fall as other people sell to take profits thereby tanking the price
- Then buy more stocks or coins at that cheaper price to end up with more gains than if you just bought and HODLed through the ATH price correction
The problem with that is your timing has to be pretty good all the time. Just one or two bad trades and you can get rekt. More than one trader has been ruined by this line of thinking ever since stocks and bonds were invented.
It's called "outhinking the market" and is a common trap for many investors, both new and veteran traders alike. You can't deny that massive gains *can* be made from Technical Analysis - that S2F model is scarily accurate - but no model is 100% accurate and one Black Swan event - especially combined with leveraged trading - can sometimes lead to massive losses.
Some people like to learn the hard way but if you want to make it to become a Crypto OG, you'll heed the words of crypto veterans that the path of least resistance and less stress to building bags of crypto over the long run that:
DCA + HODL = FTW
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