Few lose as much money as the greedy. If you want to lose money, the secret is to maintain an uncontrollable and disorderly craving for money. The greedy mind lacks discipline and technique. The greedy is lazy, ignorant and superficial. He wants everything quickly and easily, but refuses to do the job. He neither examines nor studies. He doesn’t know the trade. He only knows that he wants to be rich. Its sources are rumors. “The friend who knows a lot about it.” “The friend who did it well” does what everyone does. And feel what everyone feels. So he loses money. The history of the greedy always ends in ruin.
The greedy is the one who calls you after a hike. Now he finally decided to buy. He didn’t buy months ago because he heard that Bitcoin was no longer profitable. But although he “knows nothing about it”, he wants to buy now. And the second thing he tells you is that he heard that it will reach $ 28,000 in a few months. It’s true? It would be great because he wants to change his car this year.
Well, that’s the guy who buys Bitcoin with credit card and panic when the price drops. This plague makes things difficult. And they are largely responsible for volatility. Moments like the present are delicate because the FOMO is the campfire in the forest that attracts the beetles of the night. The arrival of the FOMO is the signal. These are dangerous times.
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FOMO is a phenomenon of mass psychology. They’re just people who don’t want to miss the train. A bullish rally generates a lot of enthusiasm. And the enthusiasm draws attention. A new optimism arises and it goes viral. All this energy enters the herd and delirium begins. In this collective schizophrenia, the individual reinforces his deception with the collective deception that is everywhere. The group confirms madness. The “experts” make extremely optimistic price predictions. And this Lambo, of which we dream so much, feels closer every day. We can even breathe in the salty air of the paradisiacal beach where we will retreat.
But suddenly the price drops. Panic enters us and we cannot understand what is happening. What nobody expected. The price dropped and with it our dreams. Goodbye, Miami Vice White Lambo! Goodbye Honolulu! Hello, accounts payable by credit card. It is a story that repeats itself over and over again. The greedy always buys late and always sells early. He has no patience because he wants to get rich quickly and with little effort. He only knows that he wants to live a luxury life, but his greed hurts.
All this money that the greedy loses is actually a tax. All of these funds flow into the coffers of intelligent investors. That is, the losses of the greedy are the gains of “smart money”. Here’s an open secret. Whales eat plankton. In other words: sharks feed on small fish. The clever investor sells to the optimists and buys from the fearful. He is worried in times of greed and optimistic in times of fear. Don’t get carried away by the herd. Make decisions based on your own criteria. Make your own assessment and trust your personal judgment. And you never waste time listening to price predictions.
Rationality and patience are the main virtues of the intelligent investor. The enemy is the herd’s irrationality. The worst thing we can do is listen to the people. Be careful with the big headlines. Be careful with great predictions. Be careful with the supposed influencers. We have to remember that most people make mistakes more often than individuals. When everyone says Bitcoin will go up, these are dangerous times.
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Why is greed counterproductive? Well, greed wants more for less. And that’s human nature. So the greedy win in a democracy because they are more. Man is a social animal. In most cases, it works through imitation. That is, he leaves because he sees others running. If others start walking with his hands, sooner or later he will start walking with his hands. This is because the group gives security. And the loneliness of the individual is terrifying. In other words, Most people make the same decisions as others, believe in what others believe, and act just like others. Only extraordinary people dare to take the first step and go against the grain.
Bitcoin price increases when there are more buyers than sellers. And these buyers buy because they think the price will go up. I mean, they’re optimistic. Optimism creates optimism, and the price can continue to rise and become a self-fulfilling prophecy. The energy is such that the plankton arrives. That is, the taxi drivers, the hairdressers, the housewives, the person on foot. The amateur. Rumors and recurring sentences begin. “They say it will continue to rise.” “They say it will reach $ 50,000 by the end of the year.” “My friend never fails with his predictions.” “Pepe is rich in it.” “We’ll be rich.”
The optimism is so great that everyone who wanted to buy has already bought it. The money is already in Bitcoin and everyone is waiting. Before the hike they bought the big ones and the professionals. They bought the most attentive during the hike. And finally, the plebs come. People who read the headlines and buy because of the rumors. Emotional buyers who feel the energy and want to get rich quickly and in return. However, what actually happens is that liquidity is exhausted. There are no more buyers because the money has been used up. That is, a bubble formed.
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The price is stagnating at the top and the first sales are arriving. These are the people who want to collect profits. But there is no more money available because everyone is optimistic about Bitcoin. What happens? The price drops. Everyone said the rise would continue, but the surprising decline came. The plebs panic because they don’t know what is happening and the breakdown is safe. Greed did it again. The population lost money again and the smart investor is now richer. The whales ate the plankton again.
Patience is the ally of the intelligent investor. It is cheap and it is expensive. You have to be skeptical of the collective euphoria. Never fall into the mass trap. We should never assume that the majority is correct. If the price goes down, take it easy. If the price goes up, take it easy. The most important thing is the strategy. The price fluctuations cannot take our sleep. You don’t have to pay attention to the predictions of the supposed experts. Eliminate greed from your soul. Greed is ruin. Perseverance, patience, study, hard work, here is the secret of wealth. Don’t fall for the FOMO. Be a smart investor.