Panic selling vs Panic buying - page 6.

monkeydominicorobin

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Quote from: Beerwizzard on November 03, 2017, 01:09:06 AM

Hey there!
A question of panic selling was already discussed on this forum a billion times. But whats bad here? If you are sure that the price will grow back then you can just buy some BTC in better rates. The more dangerous will be the situation when someone is buying BTC while being afraid of loosing some profits despite the fact that pump has already happened (I'm calling it a panic buying). Thats seems like a straight way to lose money and make a bubble.

You never think about the receiving end which is why you are asking this question. When you are in a panic buying mode you need sellers to make it work. When you are in a panic selling mode, you need buyers to make it work. But in cryptocurrency there is no such thing as end of the trading day. Since it will always be open for transactions. And applying stock market terminology in this case is worthless.

Herbert2020

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Quote from: Za1n on November 03, 2017, 01:47:11 AM

Quote from: Herbert2020 on November 03, 2017, 01:37:03 AM

it is usually called FOMO (fear of missing out).

and in any market there will always be people who make irrational rushed decisions like this. these people think of trading as a form of gambling. they think all the profit and loss they are experiencing is purely based on their luck and nothing else. they know nothing of speculation and analysis and make rather random decisions.
in bitcoin and mostly altcoins these people have a bigger portion of the market but as the market grows like bitcoin's their portion becomes smaller and with it their effect on the price.

I was also going to point out the fact that it is normally called FOMO and not really panic buying, although I suppose it can be considered as such.

Anyway, just remember that so far no one has lost money by buying the "top" in Bitcoin, although they may have had to wait some time to breakeven again. Case in point, people who bought at the absolute peak back in late 2013 probably felt pretty bummed out in 2014 and 2015, assuming they didn't sell at a loss. However, right about now anyone that managed to hold their 2013 peak purchase is probably feeling pretty good about themselves.

I am not saying this will always be the case, but so far Bitcoin has been a pretty safe bet even for those who are inclined to FOMO (panic buyers) occasionally.

Panic sellers on the other hand, it is a different story. Those who may have panic sold after the 2013-2014 crash at sub $200 levels would have had to buy back in at a loss. Same thing earlier this year when bitcoin rose above $1000 and under again, people who sold at sub $800 again had to buy in higher. No telling how high it will eventually get, and taking some profits off once in awhile is a good idea, but I wouldn't recommend playing the shorting game as in the long run it seems risky.

well buying in a bubble, at the peak or whatever is not a bad thing at all. for example people were calling bitcoin a bubble ever since it passed $1200 (the first ATH) and you can see that them calling it bubble was completely wrong.
even if you buy at the peak of the price (lets say at $1200 back in 2013) it is not the end of the world. what you do afterwards determines your fate. for example you could have held bitcoin and said it is too valuable for me to sell at this pong and i don't mind holding it for a long time. or you could have cut your losses, sold and waited for the bottom to buy back. although 2013 was an exception that will never be repeated because of how small market was back then and how MtGox was controlling all of it.

mobnepal

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Panic buying is term used when people get in peak price like right now bitcoin is considerably at peak price but trend shows there is still room for some rise so the one who are buying right now might not loss anything.

The important point that made difference between profit and loss in panic buying is what point you will make exit. Like some will sell for just 5-10% profit while others get greedy and keep buying at different peak prices hoping for over 50% profit, they will eventually make panic selling for loss.

Za1n

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Quote from: Herbert2020 on November 03, 2017, 01:37:03 AM

it is usually called FOMO (fear of missing out).

and in any market there will always be people who make irrational rushed decisions like this. these people think of trading as a form of gambling. they think all the profit and loss they are experiencing is purely based on their luck and nothing else. they know nothing of speculation and analysis and make rather random decisions.
in bitcoin and mostly altcoins these people have a bigger portion of the market but as the market grows like bitcoin's their portion becomes smaller and with it their effect on the price.

I was also going to point out the fact that it is normally called FOMO and not really panic buying, although I suppose it can be considered as such.

Anyway, just remember that so far no one has lost money by buying the "top" in Bitcoin, although they may have had to wait some time to breakeven again. Case in point, people who bought at the absolute peak back in late 2013 probably felt pretty bummed out in 2014 and 2015, assuming they didn't sell at a loss. However, right about now anyone that managed to hold their 2013 peak purchase is probably feeling pretty good about themselves.

I am not saying this will always be the case, but so far Bitcoin has been a pretty safe bet even for those who are inclined to FOMO (panic buyers) occasionally.

Panic sellers on the other hand, it is a different story. Those who may have panic sold after the 2013-2014 crash at sub $200 levels would have had to buy back in at a loss. Same thing earlier this year when bitcoin rose above $1000 and under again, people who sold at sub $800 again had to buy in higher. No telling how high it will eventually get, and taking some profits off once in awhile is a good idea, but I wouldn't recommend playing the shorting game as in the long run it seems risky.

Herbert2020

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Activity: 1946

Merit: 1137

it is usually called FOMO (fear of missing out).

and in any market there will always be people who make irrational rushed decisions like this. these people think of trading as a form of gambling. they think all the profit and loss they are experiencing is purely based on their luck and nothing else. they know nothing of speculation and analysis and make rather random decisions.
in bitcoin and mostly altcoins these people have a bigger portion of the market but as the market grows like bitcoin's their portion becomes smaller and with it their effect on the price.

davis196

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Quote from: Beerwizzard on November 03, 2017, 01:09:06 AM

Hey there!
A question of panic selling was already discussed on this forum a billion times. But whats bad here? If you are sure that the price will grow back then you can just buy some BTC in better rates. The more dangerous will be the situation when someone is buying BTC while being afraid of loosing some profits despite the fact that pump has already happened (I'm calling it a panic buying). Thats seems like a straight way to lose money and make a bubble.

We should forget about any emotion when we trade.
I would say that both panic selling and panic buying are wrong actions,because people are driven by emotions when they execute such actions.All the buying and selling decisions must be done after proper tachnical and fundamental analysis of the market.
Anyway,all the panic selling and buying made by the newbie traders is good for the experienced traders,because they make profits from other traders mistakes.

Beerwizzard

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Hey there!
A question of panic selling was already discussed on this forum a billion times. But whats bad here? If you are sure that the price will grow back then you can just buy some BTC in better rates. The more dangerous will be the situation when someone is buying BTC while being afraid of loosing some profits despite the fact that pump has already happened (I'm calling it a panic buying). Thats seems like a straight way to lose money and make a bubble.

Topic: Panic selling vs Panic buying - page 6. (Read 1788 times)