Most retail investors look at the price; institutional "smart money" looks at value and liquidity. The Psychological Trap: When the market bleeds, the human brain screams "Run!" even though that is mathematically the best time to lower your average entry price. The "Knife" Factor: As the saying goes, "Don't try to catch a falling knife." This is why your point about trend confirmation is vital. Buying at $60k on the way down is "catching the knife"; buying at $61k once it has bounced off $59k is "trading the reversal."
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#WhiteHouseTalksStablecoinYields 🧠 Why "Smart Money" Thinks Differently
Most retail investors look at the price; institutional "smart money" looks at value and liquidity.
The Psychological Trap: When the market bleeds, the human brain screams "Run!" even though that is mathematically the best time to lower your average entry price.
The "Knife" Factor: As the saying goes, "Don't try to catch a falling knife." This is why your point about trend confirmation is vital. Buying at $60k on the way down is "catching the knife"; buying at $61k once it has bounced off $59k is "trading the reversal."