Many investors new or old to the space aren’t prepared for the harsh reality of what really goes on behind the scenes. When investors have a heavy position setup in any asset whether crypto, commodities, or equities the last thing they want is a bearish market with poor market sentiment, most investors out there fail because they follow false hopes and fabricated information from online news, the Fed and other channels. Investors make moves based on rumors, some speculative TAs, and other random information with poor data to back it up just like the current stock market momentum, the fed speaks and we have a rally, they did it to give the start of the year a positive position showing a gain which gives hedge fund managers, investors, brokers, and corporations a false sense of a good start of the year which allows the market to pump itself over a broken market backbone. So they will keep investing until things go south again, unsustainable due to artificial breaks.
Please understand that when money is involved emotions take control, investors and new fish prefer positive feedback & analysis as it creates a false sense of security and adrenaline rush and then that same rush overtakes the investors’ mind to a point where a non-calculated decision is made that leads to poor execution and eventually a loss.
If you are one of those then you will have a hard time in this space or any market for that matter. You have to learn to take a loss, ride a bear market and piggyback downtrends in order to build leather skin or suffer from the market volatility.
This is all suppose to happen and those who standby the battlefield with their heads high will prevail.