... In fact, prices change on a constant basis in the crypto currency market. This is because perceptions change on a constant basis.

You could be buying into a coin because you have completed hours of research and are now dead certain that it’s price is going to climb and provide you with a substantial profit. You will have been pumped up and exited to buy your way into that coin. In your mind, you will have already calculated all of the things that you are going to spend your profits on.... Then, you log onto bitcointalk forums, read one line of negative publicity and, within the space of 5 minutes, your entire perception will have been altered. You will have gone from a state of perceiving value, to now being in a state of panic and fear. This will cause you disregard the dozens of hours you have spent in research, and to sell all of your holdings, even at a loss.

But, just like you determined in your original research – that same coin will begin to creep upwards. Then it will begin climbing powerfully through price range after price range... then it’s will begin to skyrocket in value almost by 150%...

...then, strangely, your perception will have changed yet again. No longer are you fearful because, clearly, this coin has just had a major advancement in value – in fact, now, you will have retuned into a state of perceiving value, and those thoughts of future profits and how you are going to spend them have returned... so what do you do? You buy back in...

Then... and the story is very common... the price begins to plummet directly into the ground almost as soon as you have bought back in.. It drops 20% of value, but this time – you don’t sell.. this time, you hold on – because you just watched this coin climb 100% so now the image of profit is too real for you to let go... The price drops by another 20%, but still – you don’t sell... this time, you continue to hold because everyone on twitter is swearing on their grandmother’s ashes that this coin is going “to the moon”... Eventually, you wind up with a 60% loss and again, you refuse to sell because now, you have decided just to wait for the coin the return back a level where you can get out at even...

But that’s it.. a couple of days go by and the price has still not lifted.. a week has gone by and now you finally decide to sell at a 60% loss.

Then... the price rallies again, this time higher than it did during the last rally.

You see guys, this is a quirk in the way the human mind works in regard to risk and gain. People shy away from risk when it comes to gains, but they will take the largest and most irrational risks when it comes to avoiding losses.

In the above example, there was an initial opportunity to buy and to profit – however, the decision was made to back out of the trade due to the risk of loss.

Then once the coin advanced in price, the buy was locked in and sealed.. but due to jumping in during the wrong stage of the price advancement, the price began to fall.. Yet this time, there was no perception of risk at all, there was no decision made to sell until 60% of the coins value was lost.

The human mind is geared so that you gamble to avoid loss, but you evade and shy away from taking risk when it comes to gains.