Popular crypto trader and analyst Lark Davis says the majority of investors will lose money during the current bull cycle, despite rising prices.
Speaking in a recent YouTube video, Davis told his subscribers 90% or more of crypto investors will lose money and squander their gains in the long-term. He highlighted the pitfall created by fear-of-missing-out (FOMO) as a primary detractor for most investors.
Davis warned against buying into hype-generated market rallies and to avoid panic selling during times of price pullbacks.
He said,
Most investors, they will buy the top, sell the bottom, buy the top, sell the bottom, rinse and repeat ’til they’re broke.
Davis cited research by Santiment showing bullish market sentiment corresponded with a better time for investors to sell crypto-assets, rather than buying at elevated prices. He also recommended his followers ignore social media pundits, especially during times of extreme bullish or bearish activity.
Davis said the majority of traders failed to outline their acceptable risks before investing, causing them to get “way in over their heads.”
He concluded by imploring followers to take profits on gains, rather than holding for too long.
He said,
Here’s the thing: if you never hit the sell button, you’re never going to realize your gains. You’re never actually going to make a profit. It’s all theoretical until you click ‘sell.’ Make a habit of taking profits.
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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
