The market always has a way of causing the majority to make wrong decisions, and the sideways phase is the sharpest sword. Not as noisy as during a sharp decline, nor as exciting as during a sudden rise, going sideways silently erodes investors’ confidence in the most brutal way.
Just a few days of observation are enough to see: a coin with unchanged fundamentals initially has high expectations for a strong increase. However, after a few sideways sessions, the majority’s profit target automatically drops. From “a big gain” to “a little happiness.” The coin remains the same, the investment logic unchanged, only human psychology is worn down by time.
Going sideways doesn’t hurt you immediately, but it makes you start doubting yourself. And that is the most dangerous thing.
Why Is the Sideways Phase the “Harvest” Time for the Market?
When prices fluctuate within a narrow range for a long time, investors’ nerves gradually tire. Humans are not good at enduring uncertainty. At this point, a psychological phenomenon often appears: overemphasizing short-term developments and forgetting the long-term picture.
During the sideways phase, large trading volumes do not entirely come from natural transactions. Often, this is how big players “use time to change space,” creating frustration, causing retail investors’ confidence to crack little by little.
Interestingly: when most only dare to think about immediate profits, no longer hoping for the long term, the big trend quietly forms. The market doesn’t need you to be desperate; just losing patience is enough.
Why Do Small Investors Usually Fail to Maintain Profitable Positions?
Behavioral finance reveals a harsh truth: the pain of heavy losses is much greater than the joy of multiple profits. Therefore, when the account is just in the green, the first instinct is to take profits quickly to “stay safe.”
Conversely, when experiencing losses, people tend to hold on to losses hoping the market will turn around. The result is a familiar cycle: sell early when in profit, hold long when in loss. It’s not about choosing the wrong asset but leaving the game too early when the big trend begins.
The biggest challenge in investing is not predicting the right direction but having enough courage to go all the way when you are correct.
The Market Always Repeats Old Scenarios
Financial history shows that after each strong volatility phase, the market often enters a prolonged accumulation period. Those who panic and sell at the bottom are often the same people standing on the sidelines when the recovery occurs.
In the cryptocurrency market, psychological round price levels often become “trust test points.” Prices continuously hit and pull back, creating the illusion that they cannot be surpassed. These fluctuations cause retail investors to waver, while large capital quietly prepares for the next move.
The herd effect makes everything worse. Rumors and unverified opinions spread continuously, turning waiting into an invisible fear.
How to Avoid Being “Knocked Out” During the Sideways Phase?
The most important thing is to have a clear system. Before entering a trade, you need to know why you are buying and when you will sell. If the reason hasn’t changed, short-term volatility alone is not enough to break the plan.
Capital management plays a crucial role. Dividing positions into smaller parts, deploying funds at different price zones helps reduce psychological pressure and limit risks when the market hasn’t chosen a direction yet.
Additionally, developing emotional control is a significant advantage. When you are not swept away by each candlestick, you stay calm enough to see real opportunities.
Personal Perspective After Many Years of Experience
Over time, I realize that going sideways is the harshest test. It doesn’t test knowledge but tests discipline and perseverance. Many skilled technical analysts lose because they can’t endure the market’s silence.
Conversely, many seemingly ordinary investors, simply because they stick to their initial plan, end up enjoying the full wave of growth afterward.
When you feel like giving up, ask yourself: has the asset’s fundamentals changed, or is it just my emotions that are declining?
In the cryptocurrency market, big rewards often go to those who can go through the cycle. That doesn’t mean blindly holding, but being patient when the reasons for investing are still valid.
Conclusion
The market operates in cycles. After a sideways period, there is always a direction to take. Those who maintain faith during the most boring phase are often the ones rewarded the most.
In an era where everyone wants to get rich quickly, patience might be the least appreciated but most effective strategy. Keep a cool head, stay patient. The market always rewards those who truly understand it.
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The market always has a way of causing the majority to make wrong decisions, and the sideways phase is the sharpest sword. Not as noisy as during a sharp decline, nor as exciting as during a sudden rise, going sideways silently erodes investors’ confidence in the most brutal way. Just a few days of observation are enough to see: a coin with unchanged fundamentals initially has high expectations for a strong increase. However, after a few sideways sessions, the majority’s profit target automatically drops. From “a big gain” to “a little happiness.” The coin remains the same, the investment logic unchanged, only human psychology is worn down by time. Going sideways doesn’t hurt you immediately, but it makes you start doubting yourself. And that is the most dangerous thing.