There are a lot of newbies and/or even poor folks who do not engage in good cashflow management practices, and they are more easily shaken from their investment as compared with a rich person who might already have a lot of back up funds in place, including friends and relatives who might be able to bail them out when they screw up their cashflow management. Poor people do not tend to have a lot of back up funds that are naturally in place as compared with more well-off investors.
Permit me to tag this set of newbies or folks has weak hands, most often they are the ones that usually panic sell when the market is dipping due to fear of actually losing. This newbies or not so bouyant folks already have the narrative that bitcoin usually pumps and gives profits, even though bitcoin has historically proven that the market price will go up there is no guarantee that this will happen or when it will happen. So just like what you said it is best for every investor to actually have risk management what to fall back to when the market doesn’t pump.
It is not always that you use discretionary capital or funds you have but as an investor can you handle the risk if the investment hits a stone, having back up funds doesn’t only save you from risks but also helps you to be able to hold for long regardless of the market conditions and that’s the tool to been profitable in the bitcoin