Why Does the Market Drop When I Buy — and Rise When I Sell?
A Guide for New Crypto Traders
If you’ve recently entered the world of cryptocurrencies, you’ve probably asked yourself this painful question:
“Every time I buy a coin, the price drops… and when I sell, it goes up! Is the market against me?”
You’re not alone. Many traders — especially in their early days — feel like the market moves in the exact opposite direction of their decisions. But in reality, there are logical and psychological reasons behind this feeling. Let’s break them down, and then explore practical solutions to avoid falling into this common trap.
🔍 First: Why does this feeling happen? 🤯
1. Emotional Trading
Most trading decisions are driven by fear or greed. For example:
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Fear of Missing Out (FOMO) makes you buy after a big rally.
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Fear of Loss (Panic Selling) forces you to sell at the bottom.
Result? You enter at the top and exit at the bottom.
2. Lack of a Trading Plan
Without a clear plan that defines your entry/exit points and risk management, you become vulnerable to emotional swings and short-term volatility.
3. Hindsight Bias
After selling, when you see the price go up, it feels like you always “miss the opportunity,” even though your decision might’ve been reasonable at the time.
Your mind remembers regret more vividly than smart decisions.
✅ Second: How to avoid this trap?
1. ✍️ Create a Clear Trading Plan
Define:
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When you’ll enter (based on a strategy or analysis)
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When you’ll exit (take profit or stop loss)
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How much capital you're willing to risk
2. ⌛ Use Dollar-Cost Averaging (DCA)
Instead of going all in at once, split your investment across several entries. This helps you reduce the impact of market volatility.
3. 🧠 Train Emotional Discipline
Trade like a robot. Don’t celebrate profits too much, and don’t panic when you lose. Sticking to your plan is more important than emotional reactions.
4. 📓 Keep a Trading Journal
Log every trade:
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Why you entered
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What you expected
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What happened
After a month, you’ll be surprised how many mistakes you can fix just by reviewing your own records.
5. 📊 Use Technical Analysis or Follow Experts
Avoid making decisions based on tweets or rumors. Learn the basics or follow reliable analysts who explain the market with logic and clarity.
💡 Conclusion
The market isn’t out to get you — but it doesn’t forgive random actions. Every successful trader today has faced the same frustrations you’re going through.
The difference is: they learned from their mistakes and created rules they don’t break.
Start today. Make a plan. Train your discipline.
And always remember:
“A loss is just a moment — but learning from it is a long-term win.”
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