In investing, especially in the crypto or stock market, most people share a common desire: buy at the bottom – sell at the top. But in reality, even when the price truly bottoms out, most investors are hesitant to buy. And when the price reaches the top, they don't want to sell, always hoping it will go even higher.
This is the trap of greed.
Why Is It Difficult to Buy at the Bottom and Sell at the Top?
Waiting mentality: When prices drop, many people think it will drop further, so they hesitate and miss opportunities. Greed mentality: When prices rise sharply, instead of taking profits, they expect even higher, leading to unexpected reversals. There is no "perfect point": The market is always volatile, and no one can accurately predict the lowest or highest point.
Solution: Capital Allocation – Buy and Sell in Portions
This is an important principle that helps investors reduce risk and stabilize their mentality:
Allocation when buying (build position):
Instead of putting all your money in at once, divide your capital into several parts. For example: if you plan to invest 100 million in a coin, split it into 4–5 purchases at different price levels. This way, if the price drops further, you still have capital to average down. Allocation when selling ( taking profit ):
When the coin has increased, don't wait for the absolute peak. You can take profits in parts. For example: sell 25% when you have a 30% profit, sell another 25% when you have a 50% profit, and hold the remaining part for the long term. In this way, you both preserve profits and have the opportunity to enjoy additional gains.
The Significance of "Accepting Being Stuck" and "Accepting to Sell"
A little bit squeezed: When allocating purchases, you may buy earlier than the bottom, resulting in a "temporary loss." But that's normal, as you still have capital to balance. Selling a bit early: When allocating sales, you may take profits too early and then the price might still rise. But at least you have real profits in hand, not "paper profits."
This is indeed positive feedback from the market – helping you both learn and maintain discipline.
Conclusion
Investing is not a game of guessing peaks and bottoms. Those who always dream of "catching the entire wave" are often the ones who incur the most losses.
On the contrary, those who know how to control their greed, allocate capital, and accept imperfection will have a more sustainable long-term path.
👉 Remember that: "Investing is a game of patience and discipline, not a game of chance looking for the top and bottom."
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Smart Capital Allocation: Why Is It Important to Know Buy Allocation and Sell Allocation?
In investing, especially in the crypto or stock market, most people share a common desire: buy at the bottom – sell at the top. But in reality, even when the price truly bottoms out, most investors are hesitant to buy. And when the price reaches the top, they don't want to sell, always hoping it will go even higher. This is the trap of greed.