Most people who panic or start overreacting when the market starts crashing or dipping are newbie investors because they don't know much about the market and how volatile the cryptocurrencies are, so when they see their portfolio losing value, they start thinking that they are losing money.
That's correct but also we have old investors who panic or start overreacting when the market is experiencing a correction and that's always because they invested too much into the market and now they can't stand the loss they'll experience if the market keeps correcting and they're not out of their market ywt. Many individual still invest more than they can't afford to lose and this is a wrong way of investing as they'll regret the decision in bear market.
Yeah, I do agree, but it's seldom to see a experienced investors suddenly snap and sell his stash of bitcoin because the price in the market is free falling. I do agree that in the beginning, newbies will tend to sell and have short emotions and panic because they don't like what they are seeing. But if they have learned their lessons enough, I think they will be good in the long run and not sell and then regret their decision.
If you invested only your spare money, you can always take your eyes off the market as you won't be scared if the market is dipping because you know the market will recover and if they market doesn't recover, you can let go of the money that you invested because it wasn't much.
Yes, invest what you can afford to lose. But there are investors, not all of them though, wanted to take a big risk and just invest the money they all have right now and worry about later how they are going to go on. And that's why we heard them complaining and then just sell off everything and not coming back in the market. But they did make a mistake and hopefully for those, it's not to late to comeback again and re-invest and then uses the experience they've learn from the past to not make the same mistakes.
