The Psychological Journey Of A Crypto Hodler
As a crypto trader who have been in the crypto investment for a while, I can say that I have experienced a whole lot of psychological market cycle. While it’s always advisable to learn how to control our emotions, we can’t help but obviously state the fact that it’s not possible. We are all humans and we are not trading or investing for fun, we are investing because we want to make money. Lots of people have created a career for theirselves through trading and feed off it, so tell me, how can people not be emotionally attached to trading?
This has led us into perceiving the market in different emotional psychological ways when trading. Most people are always bullish when trading, especially the retail traders, if you are buying a coin, you expect it to go up, as for the people that always trade bears, I don’t know why they choose to short the market. It’s part of the trading life, the whales will always want to take advantage of the retail bulls by shorting the market, there by getting their positions liquidated and giving theirselves some gains. This in every way end up affecting the psychological trading pattern of the retail traders. When the whales come and short the market for long, the market then seems like it’s on an unending bear market. Destabilizing the way the retail traders see the market, they start having doubts and disbeliefs, thinking that the bull market may not come anytime soon. They don’t see strength in an uptrend movement anymore or rather anytime soon.
This is the reason we get hyped when we see little hopes of gains in the market. We have been stuck in disbelief for so long that we hype the slightest chance of hope we see. You must have seen the meme of a facial expression to show the difference between celebrating 10% gain after experiencing 50% loss in the value of your portfolio. This then create some little form of optimism for traders. We start feeling optimistic about the market, hoping that just may be, the uptrend is about to start again.
When the prices start going high, we start feeling confident and start believing that the market uptrend is back, this create more confidence to enter the market bullish with higher expectations. The market keeps going up, we keep getting confident and forget to take profit because we have been engulfed with the euphoric gains of the market. Instead of taking out our profit we end up putting more money into the market.
We all know that nothing can go up for ever, this stage, the price reaches a peak and starts falling, some of us will sense that as a brief retracement and not take our profit because we believe that the market will keep going up. I have done this lots of times because of what some people had tweeted. They said when a market retraces after a bullish trend, its just a retardement not a sign of bear market. Lots of people believe this and end up not taking profit, but instead remain complacent. But when they find out they are wrong, the market wasn’t retracing but trending downwards, they get anxious and anxiety sets in. The only option is sell those coins, take your loss and move on or you HODL(Hold On for Dear Life).
Well, this is how I became a hodler in some unnecessary coins I was just supposed to make gains and leave. Because I believe and stand by the term, you only lose in crypto when you sell, I end up not selling, I hodl till the market recovers and make my money back. This stage is called the denial stage.
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