top of page
Search

The Psychology Behind Investors' High Buy, Low Sell Behavior and how to get out of toxic trading behaviour - A Case Study using True Human Nature TRUEHN and TRUEHN GOLD TRUEHNG

Writer's picture: TRUEHN.COM SUPPORTTRUEHN.COM SUPPORT


When it comes to investing, the age-old adage "buy low, sell high" seems like a straightforward principle to follow. However, the reality is often quite the opposite. So, why do investors tend to buy high and sell low, acting against their own financial interests? Let's delve into the intriguing world of investor psychology to uncover the mysteries behind this perplexing behavior using the case study of two assets which give investors a straight forward "buy (ultry)low, sell high" option.


The Fear Factor



(TRUEHN GOLD is a compassion asset on Polygon; the charts are screaming BUY BUY BUY. TRUEHN GOLD is over 5 figures below its price target. A perfect example of "Buy (Ultra)Low, Sell High).


One of the primary reasons behind the high buy, low sell phenomenon is fear based on emotional weakness and disconnction from life. When markets are soaring, investors may experience a fear of missing out (FOMO) – a powerful emotion that drives them to blindly jump on the bandwagon and purchase assets at inflated prices just to get burnt by market makers who laught about FOMO buyers. This fear is often fueled by the relentless noise of bullish forecasts, market making scams and false success stories, creating a misleading sense of urgency to join the market frenzy.


Herd Mentality



(True Human Nature is a compassion asset on Polygon; the charts are screaming BUY BUY BUY. TRUEHN is more than 6 figures below its price target. A stunning example of "Buy (Ultra)Low, Sell High).


Humans are inherently social beings looking for community, consideration and most of all connection with others fellow human beings, and this social influence extends to the realm of investing. The herd mentality, also known as groupthink, plays a significant role in investors' decision-making processes and is used by manipulating market forces trying to trick investors into the BUY HGH, SELL LOW mistake. When everyone around them is buying, individuals are more likely to follow suit, even if it means entering the market at a peak. This herd behavior can lead to inflated asset prices and ultimately precipitate a market downturn.


Emotional Biases


Emotions play a crucial role in investors' behavior, often clouding their judgment and leading to irrational decisions, especially if we are not aware of the true origins of our emtions. Cognitive biases such as loss aversion, recency bias, and anchoring can distort perceptions of risk and return, prompting investors to buy when optimism is high and sell when fear sets in. These emotional biases create a vicious cycle of buying high and selling low, eroding potential gains and sabotaging long-term investment strategies.


Overconfidence and Overreaction


Investors' tendency to buy high and sell low can also be attributed to overconfidence and overreaction. Overconfident investors may believe they have superior insights or abilities, leading them to overestimate their capacity to beat the market. This overconfidence can result in excessive trading, chasing hot stocks and other investments, and succumbing to the allure of quick profits, thereby buying high and selling low in the process.


The Impact of Media and Information Overload


In today's interconnected world, investors are bombarded with a constant stream of financial news, market analyses, and expert opinions aimed to disconnect human nature from the human needs. This information overload can amplify emotional responses, heighten fear and greed, and exacerbate investors' buy-high, sell-low tendencies. The media's role in shaping investor sentiment cannot be underestimated, as sensational headlines and narratives can sway market participants and spur impulsive decision-making. You would assume that regulators jump in to protect you, which is unfortunately not the case. Whether that is because they are part of the information machinery or because the amount of misleading noise is bigger than their response capacity is beyond the scope of this article.





Breaking the Cycle


Understanding the psychological factors driving investors' high buy, low sell behavior is the first step towards breaking this detrimental cycle. By cultivating self-awareness basd on the human needs, embracing a disciplined investment approach based on your own goals and values in life, and tuning out the noise that disconnects you from your human needs, investors can mitigate emotional biases, resist herd mentality, and make more rational financial decisions aligned with their long-term goals and values.


In conclusion, the phenomenon of investors buying high and selling low is a complex interplay of emotions, biases, and external influences that challenge even the most seasoned market participants. By unraveling the mysteries behind this behavior and adopting a mindful approach to investing, individuals can navigate the tumultuous waters of the financial markets with greater resilience and conviction.


Next time you feel the urge to buy at market peaks or sell during downturns, pause, reflect on the psychological factors at play, and consider whether your decisions are driven by fear, greed, or rational analysis. After all, in the world of investing, understanding the unknown can be the key to unlocking true financial success.

13 views0 comments

コメント


​COMPASSION ADVISORS FZ LLC 

كومباشن ادفايزورز ش م ح- ذ م م

FOAM1488
Compass Building,
Al Shohada Road,
AL Hamra Industrial Zone-FZ,
Ras Al Khaimah, United Arab Emirates

(310) 598-2681​

info@heart2heartchat.org

THIS WEBSITE IS COVERED BY H.R.3723 ECONOMIC ESPIONAGE ACT OF 1996 TRADE SECRETS.

Subscribe to Our Newsletter

Thanks for submitting!

© 2023 by Allegiant Crew LLC.

All rights reserved. 

Neon Black Modern Strong Woman Fashion Magazine Cover.jpg
bottom of page