Warren Buffett once said:

“The market transfers money from the impatient to the patient.”

Sounds simple, but behind that is a whole lot of neuroscience.

When investing, we are not just battling the market — but also battling our own brains.

🚀 When the market is rising (Bull run)

Price increases → Dopamine increases → Excitement → FOMO 🔥

The brain will urge: “If I don't get in now, I will miss out!”

Social media fuels the fire:

Dogecoin, Shiba, TRUMP coin, MELANIA coin…

Not because of real value, but because of emotions & crowd psychology.

When dopamine leads the way → easy to buy at the peak.

🐻 When the market declines (Bear market)

Price dumps → Amygdala (fear center) activates → Panic sell 😱

We hate losing money more than we like making money → Fear > Reason

This is the time:

  • Panic selling due to fear

  • Holding coins despite everything being bad because “it might recover” → cognitive dissonance

When fear leads the way → easy to sell at the bottom.

👥 Mirror neurons & herd effect

Seeing others win → Brain reacts as if we are winning → we follow.

No analysis — just copy the market's emotions.

📌 Important lesson

✅ Understanding emotions = advantage in trading

✅ Avoid FOMO, avoid panic

✅ Build discipline – do not follow the crowd

✅ Observe market psychology to catch cycles

Investing is not a game of emotions — but a game of awareness.

🎯 Conclusion

Losses are not just due to lack of knowledge — but because the brain is programmed to react emotionally.

Want to win?

Study analysis – but must master psychology first.