You are partially correct because not all investor has the mindset of buying and selling back because of little profit rather what makes some people sell is because they can not control their emotions, have you ask yourself why some great Investors get moved whenever the market dip so much? Do you know what makes investors panic? Whenever the market dip they are been drive by their emotions, there emotions will make them think different things at that instant and if they can not handle it they will sell off and they sell not because it was there initial plan no, they sell because they can not get ride of their emotions. Emotions is what one should deal with before investing.
In addition many investors today struggle with emotional control which it lead to impulsive decisions making during the market downturn, most at time the market dip can trigger fear and panic causing most investors to sell, even if it wasn't their intention of selling off their assets.
One of the most important way of fighting this emotions is only when the investment is done with the money from our discretionary income meaning that you are not depending on your investment to solve your personal needs so even when the market is in downturn you will have nothing to worry about with the confident that it will bounce back and more higher over the long term unless maybe you are a short term trader looking for a Short term profit that you will get disappointed and panic during the market downturn because the only thing you are thinking of is to see Bitcoin going up forgetting that the market conprises of the ups and the downs .
Why would an investor become emotional in the first place?
That is for traders not investors, because in my own opinion, the key thing is having faith in Bitcoin and it potential on the longer run, if you really have faith in it, and you invest with an amount you can do away with for a very long time, you have no worries because no matter how dip the value of Bitcoin goes, it can always recover, it's just a matter of time, unless you don't know how the value of Bitcoin goes, it's only newbies investors that don't know how Bitcoin moves that will start panicking anytime their is a serious dip in the market, anyone that has gotten a little bit of experience or knowledge on how Bitcoin operate, wouldn't be bothered at all because he knows that it's just a matter of time before it rallies back to even much more better height.
Generally, those who invest long will not be emotional about these minor market down and turns. If you notice, you will see that those who invest in short positions expecting to make a quick profit are the ones who get emotional and sell Bitcoin during bad market conditions. Especially those who sell Bitcoin emotionally and cannot make a profit. Those who sell Bitcoin emotionally will regret it later when the price of Bitcoin increases. Bitcoin is a coin that has a very low probability of being lost. If you invest for a long time, you will get a profit, it is 100% sure, on the other hand, those who invest in short positions in Bitcoin cannot achieve such a profit. They may gain a small profit, but most of the time, they cannot.
Bitcoin has a great potential yes and it is also a nice asset that one should invest on but saying that if someone invest in long term that they will have profit and it is 100% sure is what an investor is not suppose to tell someone especially a newbie because we don't know what tomorrow holds for Bitcoin, as a matter of fact no investment that it profit or return in long term is 100% sure or guarantee perhaps we should put away the thoughts of Bitcoin profit being 100% in a long period of time, remember what we are using to invest is what we can afford to let go so telling someone for sure may look like misleading the person, that is making the person to invest more than they are suppose to... because of the assurance you gave them.