The problem with "Buy Low, Sell High"

I often look at graphs of coins that mooned and envision myself buying low and selling high. Yet there's a reason why that never happens.

When we see a coin that's low, we don't want to buy. There's a recency effect. We think it's a loser. It's like if a girl sees you get rejected by other girls, of course she's going to reject you too.

Similarly, when a coin is exploding, everybody is singing its praises, extolling its virtue. The coin literally can do no wrong. It is a thing of beauty. It's been so good to you, baby, do you dare show your ungratefulness and sell? Of course not.

Suppose you do buy a coin that's low, and you watch miraculously as it pumps. If you believe in it, you'll stay loyal through minor hiccups. Then you can see its true potential, because you believe. But then, once it's peaked and everyone else can see that it's going to drop, YOU can't, because you have blinders on. You believe, and it's been good to you.

Now if you don't believe in the coin, and you see it pumping, you anticipate massive drops in every little dip. You become skittish and nervous, and you dump that thing at the first sign of trouble - and hence it never peaks for you.

To sum up, when a coin is low, there is massive inertia - you don't want to buy. When a coin is high, you're literally intoxicated with giddiness - you don't want to sell. If you believe in it, you'll watch it peak and then you will get disappointed by it in the end. If you don't believe, you will get rid of it much too early and never see it moon.

So remember that you can never win at this. These are fundamental forces of nature that conspire against you. It's a rigged game. It's impossible to just "buy low, sell high." So what do you do? Well, you do the exact opposite. You buy high, and you sell low.

Or just trade according to an ob/os indicator.

God fucking dammit you're retarded.

Thank you wise one.

Your words will not be used in vain.

1. DYOR
2. Don't Buy To Wait for Pumps
3. 5-10% gain goals are fine.
4. Create a formula where you can buy back if it continues to dip 5% -10%. The odds of retracement are in your favor if you're playing the right Coins.

>Iq brainlet discovers pithy saying isn't actually actionable advice.

Oh wow, what next? "Where there's smoke there's sometimes NOT fire???" "He who hesitates is NOT necessarily lost???" "The early bird doesn't always get the worm???"

Or, you just wait for a good buy in point, when it looks oversold, buy in for quick profits, so you hit the ground running with a few percent up and don't worry so much about whether you should sell.

Start on faith, and don't ever buy in all at once, because it will always dip after you buy so you should buy more.

Noob trader here and your words definitely hit the spot. Learned it the hard by losing money. But now we can make better decisions and try not to be greedy. I find I do make smart trades around 10% gains and then just go ham and jump on board with hype and pumped up coins. Now I'm just going to stick to smaller but more consistent gains.

I'm starting to think biz is just a waste of time. It's only beneficial when you already own a coin before someone hypes it up or mention that it's pumping.

Did any of you even read till the end?

I did, and it's fucking brilliant

Hence money management
Picks are a matter of finding something before the rest of the market does
How you buy into those picks and close your trades is what defines how successful those trades will be
Incremental entry/exit in conjunction with tight stop losses if you're trading breakouts will keep your losses extremely small in comparison to your wins
And remember: This is the smart money stage of the market still, prices are based on speculation and not performance. Therefore riding hype is the only way to make profit in short term trades. There is a lot of longterm upside potential in some coins too, but it is important to remember the immense risk in buying into a company without a developed product.

But with that said I just read the final line and realised I wasted my time writing this whole thing out. fuck me days OP ya got me

I did and I wish I didnt

>I'm starting to think biz is just a waste of time. It's only beneficial when you already own a coin before someone hypes it up or mention that it's pumping.

I saw lumens threads at 500 and bought at 540. There is money to be made on Veeky Forums.

And they said their name was... they said we're called "The Aristocrats"!

I just keep buying as it goes down instead.

...

OP, we cannot predict the market but traders have some tools that can help them make a pretty good guess. Those tools often revolve around logic, psychology and statistics but rarely do they have anything to do with emotion. What you described I think is a perfect example of emotional trading, especially when you compare the coin to a girl. So you're already breaking one basic rule - don't do emotional trading. Yes, there is instinct sometimes but you should always reinforce your instinct decisions with something more concrete like the tools I mentioned.

However, I don't mean to say that what you wrote is wrong, it's a spot on description on how psychology would work for some people, but I do dispute your claim that it's all 'rigged'.

>Veeky Forums memes: the rationalisation

>Look at decent projects like omg and ark
>wait for 50% pullback
>buy
>great project and Dev team, can only go up
>trades sideways and down
>never goes anywhere

Buying dip isn't always helpful.

>I can’t wait more than a few weeks for my 20+% profits
With hands this weak, how are you ever gonna make it

20%? Wtf
Omg and ark going to the moooon baby!!!

this
I just recently decided to dabble in daytrading. I made 9/11 predicted outcomes and felt confident that I could make a profit. My first actual trade was a success, I came out 170$ profit but I was nervous and if I held out I would've made my predicted 400-500$. My second trade would've been a success but I let my emotions get to me and listened to biz fud and lost my profited stack, but then my third attempt made back my profit stack and added 50-60$ on top.

This is all within a three day period. Not too bad. Thing is never trade when your emotions are driving you.

Hurr durr the market is not predictable.
Just buy and hold when you see adoption kicking in

Wrong.
There is one fucking rule you need to trade and one rule only:

Trends are always more likely to continue than repeat.

That's it.

Than reverse I mean. Very drunk forget it.

sometimes the trend is really long term. like in the case of omg it was dropping for a whole month because it was bullish for 2 months

this, stop chasing huge gains

>decent projects like omg and ark

you cant divorce emotion entirely, thats impossible, but you can discipline your strategy.
buying low and selling high, reading the market is based largely on instinct and luck. taking profit at a good time and not fomoing is discipline

Oh, I bought coins after dips
Big dips, even
And then they fell even more
Bitcoin pumped and they fell even more
I followed dumbshit graphs and indicators, they fell even more