Topic: panic sell in trading (Read 273 times)

That's why they are NEWBIES. Do you think without those mistakes and errors they will be improved? Even professional traders today got into panic selling at some cases. Any advice won't be understand much by newbies without experiencing the actual situation being in a pressure of selling.

Just let these newbies do what they think is right because if they fail they will just end up in 2 scenarios:
- continue trading and learn from mistakes or,
- quit trading for good.

I believe many newbies that join the cryptocurrency market with the impression that the market is the venue where people invest money giving it some time and it will pump have this impression because of the misinformation provided by most crypto influencers.
It is quite sad that after most new join the crypto market their experience is usually not a good one unless the newbie is someone that joins this forum or has the right tutor in their crypto journey.

Thats the beauty of taking cautious on everything. Crypto isnt an easy way for all but there are some guys who can make a lot there easier than others. If you can do that easily then good but if you go in the hardway youll understand how volatile crypto and the safest way to survive is be wise and smart on what you do onchain or even on trading.

The crazy thing about panic sell is that most of those who do it may not even know what caused the crash in the first place. They see the market dipping and quickly they freak out and sell off. I was once in that category, maybe I'm still there (can't say for sure). Even last week we observed something similar when Bitcoin crashed from around $103,000 to below $93,000. It went up back to over $102,000 that same day. It was an unbelievable turn around. I'm sure so many people fell to that and regretted dumping their coin, prematurely.

Anyway, for me, eventhough the action of panic sellers cause market to be gloomy and lose revenue, their activities are very vital in the redistribution of wealth in this space.

Because it is trending up then they believe it will definitely go up again ... that's their thinking and don't know how big the altcoin is if it can reverse direction if the price is high then never just enter without doing any analysis.

It's still better if they trade on the spot, try if they trade futures and do high leverage then if the wrong step the loss will be even greater in the face.

Traders who panic are usually afraid of bigger losses.
More fomo to buy certain coins.
And can't see what the market trend conditions are.

Crypto means risky, here you have to trade with risk. Trading is not for everyone, not everyone can trade and earn profit. Yes newbies get excited to buy pumped coins, when the price of that coin starts to drop a bit they panic and are forced to sell at a loss. If buying a coin, if the price drops a bit, it is better to hold for a few days without panicking. Now before trading you should gain knowledge about trading, learn to analyze the market, and don't be too greedy, if you are too greedy then you will face loss. It is better to take profit if you buy a coin and gain some profit. If one does not have good knowledge about trading then one should not do trading. If you buy bad coins without understanding then you can face huge losses.

Trading is like gambling, when you enter the market late without being patient to hold, you might lose your money.
Every trader need to be wise and ready to take profit at anytime their strategy indicates a sell.
I know that it's not everyone that is using a strategy to trade in the market, some traders use technical analysis while some are also trading due to fundamental analysis. Whatsoever way you want to trade the market, it is better to use a method that is profitable and tested to avoid losses. Every trader should be concerned about how to advance their strategy for a better reward.

Maybe those beginner lack of knowledge about crypto so they enter to crypto when the trend is increase. If they learn first before they join, they will not buy crypto when the price increase but will wait until the price is down and prepare to buy. But if they buy the coin and the price still down, they will not panic but prepare to buy for more because they know that the down will be over and replace the up trend. But not just beginner who will panic sell in trading but many traders who have experienced. That is because they are not ready with any situation on the market and will not think that the price can be up and down. If they are ready, they will accept for anything that can happen so they will not regret it.

In fact, no one likes losses, everyone wants profits and even very large ones. That is a very natural thing, because after all we trade or invest to make a profit and not to see the losses.
But here what makes the difference is whether we are ready for the loss or not, because if we are not ready for the loss then I do not recommend entering trading or investment at all. Because what will happen when we are not ready for it, then we will be frustrated.
There are many strategies that can be done when there is a decline, one of which is DCA, this is a popular strategy used by many people.

Depends on what price we buy. If we buy at the dip then there is also a high chance that the price can now rise moments later after buying. This is why waiting for the dip is also beneficial apart from doing a DCA at any price points. Closing the trade to cut loss is also good than continuing and losing further but that is impressive if a newbie can do that, as we know that newbies like to go big or go home. They might only regret though when they see a pump like you said there. Sometimes it works like that. It is crazy to think about but if we opposed it, it will not happen anymore and we still can regret more because we just lose for real this time.

Actually, I think that you could explain a best opinion in your comment. So I am also agree with your prefer comment. We know that trading is one of the best profitable source in cryptocurrency world. But if we want to get best profit from cryptocurrency trading, we must understand in cryptocurrency market. Because if we can not understand in cryptocurrency market or trading, it will be very harmful for any traders or investors. Because we know that cryptocurrency market is always depending on up and down, so in this situation we must understand in trading system. So we should trying to understand all cryptocurrency world for earn best profit.

If they are a beginner, then I agree with you that they cannot be blamed for panicking and selling. Because their knowledge has not reached the stage that is truly ready to see the market moving every second.
FOMO is indeed one of the biggest problems, but as you said, FOMO occurs when they see a lot of posts on social media that only share about their profits. While almost no one posts about the big losses they get.
Some people even create a hype because they feel a loss and hope that when the hype occurs they can return their capital or even profit. But that can only be done by influencers.

We are once a newbie on which it will really be that just a very normal condition or action to be made specially at the time or the moment that we are just that starting up on which it is really that understandable that there will really those kind of errors or mistakes due to lack of knowledge and awareness on how trading works or simply on how this market behaves but at the time or moment that you do gain up that experience and sufficient knowledge then this is where you would be finding yourself that be able to handle up this market volatility but of course it wont really be an assurance that you can make profitable trades anytime on which we know that market is really that unpredictable and there's no way that you can be able to know on where it would be going.

Panic selling is the result of having no awareness on how this market works. Somehow even experienced or old timers do still suffer or experience this stuff because they are anticipating or hoping that much about positive results or outcomes into their current positions on which we know that everything ill really that remain speculative. This will be that survival of the fittest and if you are anticipating about positive outcome anytime, then it will really be just that bringing up that kind of disappointment.

FOMO is like a disease that keep newbie away from making profit, you see market pump, you will also see so many newbie buying at high price without seeing the fundamental or at least wait until dip happens.
can't blame them though, so many posts in social media always sharing big gain after pump to attract people to become their liquidity, newbie with zero experience will more likely fall into the trap.
then after that they will make decision to abandon the market or learning from the past mistake and learn to not easily gets FOMO.

but if i'm being honest, panic seller are what makes the market interesting, they just keep making the price go up even when other people don't want to buy anymore just because greed and dump it at low. basically going against the very first principle of trading, buy low sell high.

Even the old investors I think would panic sell when they find out that prices are just plunging. The experienced traders are the only ones selling to accumulate but the ones who are here who want to make money for short term trades are the first to panic.

Is this really the start of bear market or we are still going up? That's something to wait.

They know it's unpredictable, but they're just too confident in what they follow. Newbies jump in because they read that the bull run is here and Bitcoin will pump with no limit. When that doesn't happen, they panic and dump, even if it's just a minor correction. That's why they end up losing their investment.

There’s actually no panic sellers in trading if these traders know precisely when to buy and when to sell, and not just ride with the hype because that’s simply unacceptable in trading. However, since most newbies these days decide to jump in trading because of hunger for profits, not knowing that a single mistake in trading would end up ruining all their funds and even affect their finances. Unfortunately, these newbies fail to realize that, until they decide to quit early in trading because they think this trading is a big scam and they fall victims on it.

That’s how newbies trade unknowingly, buying when the price is high, selling when price in dips in order to cut their losses, so that make them losers in the end. My point here, newbies aren’t intended to trade, because they don’t have the knowledge, skills and experience that a successful trader should have. They should focus on acquiring more knowledge and develop their skills instead. Trading should only be for experienced ones, not for newbies who are easily get influenced by FUDs and trade with greed.

You can only make one hard decision and you'll not make any more decisions but you'll still be wealthy. You can decide to only buy Bitcoin and remove your eyes from the other crypto that others are buying. You can make your focus in the industry to be accumulating Bitcoin and you do that all the time when you have money. Making this decision and staying by it will help you more than putting yourself in a situation that you'll making difficult calls like when to sell or not to sell. Panic selling is very active in the market but you can avoid this by preparing your mind for anything that's about to happen and when you're conscious about the things to expect from the market then you'll not be suprise when it happens. You don't have to take risks in the market by trading or buying altcoins to make profits because buying only Bitcoin is enough.

Most people that are buying at the top and are selling when the price drops are newbies, mostly newbies are the ones that do panic after buying coins, and they notice the price is dropping. Whenever there is a dump in the market, that’s the right time to buy a particular coin, but most newbies don’t buy during that period because they always have the mindset that the coin will keep dumping, and they don’t want to enter the market during that period. Whenever the market bounces back and coins are already pumping, that’s when most of them will start buying coins, and don’t be surprised that after buying sometimes, the trade will end up going against them.

Some people know that crypto is risky, but they don’t want to lose when taking the risk, they want things to always be in their favor, so when they are losing, they are always panicking. When trading, we should always know that it’s just full of profits and losses, you can’t be a trader, and you won’t be losing, that’s not really possible.