T
T 4 minutes reading from Bitcoin

Buckle Up: Greed Will Destroy You

BTC Bull run 2021

Once the bull run has wiped out a prior high, it's now in unknown territory. An incredibly dangerous place.

No historical price action to dictate where it will stop, you're now in gambling territory.

No potential gain is worth the risk here.

Many will people will argue "But it went to 60K!, anyone who bought would have made money!"

Whilst true... it's also incredibly stupid.

Those people did make money, temporarily. It's unlikely they took profit.

Why? Because the higher you buy, the less likely you'll sell.

When it reached 60,000... this risk is of course amplified.

You need 120,000 to make 100% ROI.

This is where HODL'ers become trapped because they need the entirety of what's taken place to continue taking place to reach a 'satisfying' profit.

The last thing on your mind should be "how much higher can it go?".

Your ONLY thought should be "how much lower can this go?"

There's not only the risk of how LOW it can go, there's also the risk of how LONG it will take to reach breakeven, if ever, should price go against you.

I consider this phase of the cycle the 'wasted capital' phase.

99% of those buying this pump will not sell, because the greed that made them buy here will not allow them to settle for 100% - 200% ROI.

You're burning away valuable capital for the sake of a short-term gain.

Once the bear market starts, you now have historical price action and a reference point to justify putting money in. It's no longer gambling, as you understand how high it can go and how low it can go.

Those who waited to buy ended up far better off than those buying every pump.

Your inability to control ur greedy urges will destroy you.

Money is made in bear markets, not buying the bull market. The market will always come back down.

When the bear market comes, most now have no capital to buy dips, whilst also plagued with fear of their rekt portfolio.

The sake of a short-term gain in unknown territory doesn't outweigh the risks of long-term pain inflicted on yourself by chasing the pumps.

The bull markets start and end quickly, the bear markets bleed you dry slowly and painfully.

99% lose because of this.

Moral of the story:

Greed is single-handedly destroying your prospects of achieving a profitable outcome from crypto.

If you were too scared to buy in a bear market, you should be terrified of buying in a bull market.

The lower you buy, the less of a pump you need to win.

This post is based on this twitter thread.

Comments

Please login to comment.