Price crashes. You fear this is the bottom, must buy now or miss the pump. You jump in to catch the bottom. You jump in to catch the bottom price drops another 30%. You fell for Downside FOMO.
🔸 Psychological Mechanism:
You have cheap hallucinations. You compare current price to ATH and think it's a steal. But the market cares about the current trend, not the past peak.
You are afraid of missing the train. You view missing the bottom as a potential loss. This fear drives hasty, irrational action.
🔸 Wait For Signal Strategy:
Do not guess the lowest point. Let the market form the bottom first.
The rule is Only buy when price breaks bearish structure or forms a clear Double Bottom.
Better to pay 10% above the bottom for safety than to buy cheap and get halved.
🔹 A bottom is a zone, not a point. And bottoms are usually accompanied by boredom (low liquidity), not urgency.
Are you buying because of a reversal signal or because you fear others will eat your lunch?
News is for reference, not investment advice. Please read carefully before making a decision.
