Almost everyone who traded Hive with HBD on the Internal market in the last few days botched their strategy, either because they were too cautious or greedy.
Greed and caution are two involuntary reactions we experience when confronted with a dip or a pump. Sometimes they are the result of our previous market experiences, and the consequences can be severe.
A person who has not made any profits tends to be cautious: they enter too early and miss potential pumps, whereas those who have made a lot of profits and probably want more tend to be greedy; they wait and wait, hoping for something better than the current price, and this is due to the confidence they gained from securing earlier profits.
When I woke up at midnight on Sunday, I said, "Oh, we are pumping," and I immediately decided to exchange my Hive for HBD. I did not think "What if we have more pumps?" I wanted to ape in and secure that profit, which could be exchangeable for cheaper Hive in a few days from then.
I was overjoyed and proud of myself, only to wake up an hour or two later to see that there was an even bigger pump. I panicked, pulled out the HBD, then bought back Hive, hoping it would continue to pump, but it then pulled back and kept pulling back, so I converted them back to HBD, and it began pumping again.
I was extremely frustrated with myself. I began cautiously, and the market duped me into a "coulda, woulda" reality, until I realized I should have been greedier and anticipated a larger pump, given that the pump itself began at 0:00 midnight.
Second place can easily be first place
In reality, I did not lose; I simply regretted not waiting a little longer to get more. I have seen a few posts from people who totally messed up their predictions.
They had some sell and buy orders that did not quite fill and strategies that did not quite work out. I believe this had to do with not being able to predict how the pump would play out, which is why people reacted based on their prior knowledge.
When there is a pump or a dump, no one really has the time to make complicated decisions or take too long to make a move.
Now it was a reflex action motivated by emotions rather than logic.
However, the sentiment that supported my reaction was caution. I wanted to make a quick profit, but if I had been logical, I would have DCA'ed, but I did not and instead went all in.
I was not thinking about anything other than securing my existing profit and perhaps returning in a week or so to load back up on any potential dip; it used to be that simple, but it was not this time.
Greed
In reality, greed has more consequences. When people are greedy, they tend to go all in, without leaving any options for a fallback or something, because going all in means that they either lose or win big. Most people want to win big without considering that they could lose just as much. Here's how greed works.
These actions and behavioral tendencies can be observed in football betting, casinos, gambling, and a variety of other settings.
When people are smartly greedy, it means they can go out while keeping their senses intact, but at the end of the day, we would not call it greed. It takes gut to be greedy especially in crypto.
You must have complete knowledge of what you are getting into, which includes controlling the things over which you have actual control.
Caution
When it comes to caution, this means using contentment, logic, and reasoning. Most people are cautious during a bear market because they do not want to buy a commodity that is about to crash.
We commonly refer to it as a falling knife. To be honest, most things that crash in a bear market eventually rise in a bull market, but even knowing this, our season of rationality will never allow us to catch falling knives, because no one wants to go to zero.
At the end of the day, we all need a combination of the two and this is because it is difficult to exit the market with high profits if greed is not present.
Everyone wants to make the most of the run, but almost everyone will miss the top or bottom and misjudge the timing, no matter how much they know about the market. As a result, a combination of all emotions is required because they will serve as the checkmate that you require to remain in line.
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Interested in some more of my works
Is it Easy To Make Money?
Nigeria: A Unique Business Market & Industry
Virtual Bank Apps In Nigeria: An Experience Of Gamification
How To Find The Next "BIG" Meme Coin
Personal Finance: Achieving Intentional "Saving" Goals
Playing The Survival Game: Human Nature In Introspection
"Un-PAYING" The Debt You Owe
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