Emotions can make or break you. How you manage yours will either make you a successful trader or a "bag holder". I my past I have held more bags than I care to mention. I did not understand this very truth. I kept buying in stocks at bad entry points and selling after the bottom fell out. This chart shows exactly what happens in whatever market you are in and can be applied to Bitcoin or any other cryptocurrency.
This happens every time in anything you invest in. Smart traders who know charts can evaluate the chart and make solid entry and exit strategies. This is the successful trader. Flying by the seat of your pants or planning your entries and exits on what you see on Youtube or read on Twitter will only separate you from your money faster than a shady preacher on any given Sunday.
The issue with Mr. Emotional trader is he does not do his homework and goes with popular trends by whatever social media tells him. By the time social media has peaked on a stock or even Bitcoin you may have missed the bus. If you did buy in high on Bitcoin in the upper 2000's, just hold it. Bitcoin is unlike any stock. But the issue for Mr. Emotional is that he gets in at 2800 then the price dumps because of profit takers from Mr. Successful trader, then panic, fear and worry cloud any good judgement Mr. Emotion may have. He ends up selling on the way down for a loss. He wonders what happened. Well, he got in too late and then sold off in fear. Pure emotion.
No matter what your experience level is, you need to understand the chart and learn how it works. Knowing the chart, you will get a feel for the pulse of the market. You will be able to distinguish the psyche of the other traders. You will begin to see profit takers on the move leaving bag holders. When the bag holders freak and sell then you will see the profit takers back in raising the price making Mr. Emotional scratch his head in confusion then chase the trend and buy back in when Mr. Successful is about to dump for profits. Hence, the cycle starts all over again.
Please take time and educate yourself on charts and become Mr. Successful instead of Mr. Emotion the bag holder.
All the BEST!