The market is red, one time green candles have now turn red. If the bear market is again upon us? Is an article I will leave for another day. The crypto market is scrambling, the suggestion of 'maybe I should have held my peace just a little' or 'should have invested earlier' now sets in. I did write an article that the bull market is not for medium investors. Zig-zag lines in the market are normal, just that it doesn't always favor everyone.
Some are already in the market trap. I don't know if you are already part of it. A friend of mine just told me candles turned red as soon as he entered the market. I couldn't just stop laughing because I know how such a scenario always feels. What more was he expecting when he was chasing hypes, memecoin and token. The saying that the rich get richer is no strange conversation, it is just as true as you hear it. While some waited for over two years for a market recovery, others achieved that in just a few months.
As surprising as it may be, a lot already find themselves trapped in this current market dip.bitcoin is currently trading around the $63,000 dollars mark; not too convinced about that as it has possibilities of a comeback. Worse is what has happened in the altcoin industry. All those hype and fear of missing out (fomo) projects are just dying off. I always keep on advising, make sure you throw your money on reputable projects so at least you could have assurance of a bounce back after a long wait.
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Truth be told, to some projects, you can't call it a trap from here, it's actually game over. So what actually is 'the dip trap'? Apologies if I have not mentioned it till now; I see it as market positions with no going back. A lot are in such a situation as we speak, if you try to get out, you have to be prepared to bear the loss (financial). One of the renowned ways to get out is to 'buy the dip' but you have to note, 'dip buying' requires backup capital and not all can afford such.
You can't just blame anyone when faced with such unfavorable market conditions, you chose to swim. Investing can be very dangerous water when you do away with proper research. Here, the game is simple 'win or be won' when you are pursuing price. This both side rope drag between bulls and bears will be unending as long as the market is involved. investors portfolios are already in distress as I speak. First was the liquidation some weeks earlier followed by this retrace. Can't kick against any of such occurrence, market must always correct itself.
How fair a market is all depends on your financial intelligence in making crucial market decisions and market hypes is one of the most important ones. Distraction is everywhere when trying to build a future in the financial market. How do you hold yourself and stick to investment plans when green candles are set loose. I just read an article of a project that moved from $0.02 dollars to $1.2 dollars within the space of four hours.
With just $10 dollars you would be going home with $600 dollars, looks like honey from the honeycomb right?. There was a later retrace to $0.3 dollars. Do you know what it means?, gains for early adopters and loss for the late comers, they're all stuck in a dip trap praying that project developers don't abandon such ships soon.
Greed has always played a huge part in unhealthy financial decisions when it comes to the market. The hunt for quick gains can be fun yet a different ball game when you become addicted to it. It deprives you of professional investing and sets you loose for such continuous pursuits. The idea from here will be, 'why wait long' when I could gain overnight? That's why the market are full of gamblers and there is one characteristics of market gamblers, they don't make profit in the market. You may ask why? Whatever they make, they'll loose it and more on a later date.
The dip trap has such an effect that a lot have spent years in the market without result. If hypes and FOMO's produced best results then king of stocks like Warren Buffet would have had no such market title. A lot are already out for this year's investing because of early green candles pursuit. I learnt this lesson some years ago and have promised to now stick to investment plans.
If the market will bounce back soon depends on who is hungry more between the bull/bear pair. Medium investors ought to grow wiser when engaging in the cryptocurrency open market. You can't pursue hypes and boast healthy investment. Right questions like 'what if' and 'how can' will help a lot. :What if' in the angle of if the market dips unexpectedly and 'how can' in the sense that you have a capital strategy to get out of tight corners.
To conclude, let me add, the dip trap is real. You can't pursue hypes and FOMO's and go scot free when you are just a medium investor. Even if you do, it's not financial intelligence, just mere luck if I may say and you have to hope you don't run out of it. Dip traps deters investment portfolios, worse of all, can end investment plans when it goes out of hand. There is a need to show focus especially in a volatile market like crypto by waving off short term distractions.
