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This majorly applies to the investors and not traders, and also from what he said here, we must be able to employ a sustainable withdrawal strategy, which means we are not just only going to sell at any point in time because we feel like doing so, but it must be done on a thorough and orderly manner to which will be a profitable decision for us to sell after adopting the use of a particular selling strategy, i have witnessed some selling at loss, thinking it is more saver for them than to have an elongated loss session on their investment, we have several examples related to when some have made a selling decision at loss and some are making profits in the same way because of the strategy they all used make withdrawal.
Selling at a loss is in fact not a good decision if at the same time they have additional capital to accumulate. I know some holders may be afraid of having their investment value drop any lower due to high selling pressure, but in reality the market will only recover after over selling.
If I have to sell, then I will not sell some, but I will sell everything at the same price and plan to reinvest at a later time. I don't fully know what the purpose of selling some of it is if in the end the held asset is sold at a lower price considering market dynamics that are difficult to predict. Price volatility provides an opportunity for anyone to buy at low prices and sell at high prices, this cycle can be exploited by anyone.
Why buying an investment if you know that at the end of the day,you will have to sell it at a loss, there is no need buying it if you cannot buy and HODL it for a long-term, as a Bitcoin investor, before starting to buy and accumulate, you need to be prepared by putting necessary measures into places, like having your emergency funds which you would have built for up to 3 months from your expenses and these funds can only be used for emergencies maybe when you loss your job and have an increased expenses.
You must also have a reserve funds to backup your expenses which can be used for any other extra expenses, or saving for something else like buying more Bitcoin during the dip if needed, also the
Float funds,these is Goten from several months which you have consistently kept funds aside not knowing when the exact expenses will be, and when it comes up it will be converted to reserved fund and then used for it.
If all these necessary measures are not put in place that is why you find yourself selling your investment before time, at a lesser amount of purchase due to fear of the market price still dropping.
I think the people you are actually talking about are traders yes, because they already know they won't stay much longer in the market and if you observe they always like buying when the market price is low so that when the market appreciate they will be on profit even after knowing that the market doesn't just work that way. Mate, you should understand that no one is God that is to say that an investor can not actually tell for certain or sure that they won't invest and hold for long because we all don't know what the future holds, someone can invest today and tomorrow the person might encounter a challenge that will require the person to use up all his or her savings you know why? Because there are some challenges that our reserve funds, emergency etc can not take care of.