Bank of America conducted a comprehensive study of the Standard & Poor's 500 Index and concluded that panic selling often leads to missed opportunities when investing in financial markets.

                             

Bank of America strategists traced data back to 1930 and found that the total return of the basic holding strategy was 17,715%. On the other hand, if investors try to seize market opportunities, they may miss the best trading day. If the S&P 500 only missed the 10 best trading days every 10 years, the total return would fall to 28%.

For many investors, especially inexperienced investors, after a severe economic downturn, there will naturally be an urge to sell. But Bank of America found that the best trading days in the market often follow the worst declines. Panic selling during the downturn may cause investors to miss opportunities.

Savita Subramanian, head of US equity and quantitative strategy at the bank, explained:

"Keeping investment in turbulent times can help recover losses after a bear market, which takes an average of 1,100 trading days to cover losses after the bear market.

Cryptocurrency investors, especially Bitcoin holders, are known for their low time preference. Industry data shows that more than 60% of Bitcoin's circulating supply has not changed for a year or more, which reflects people's growing confidence in Bitcoin. Even during the recent price surge, only 36% of Bitcoin's circulating supply has changed in the past six months.

                         

Experienced cryptocurrency holders have adapted to the fact that in the long run, seizing market opportunities may cost them a high price.

Just like stocks, Bitcoin's top ten trading days each day are an important source of its gains. During the 2017 bull market, the price of Bitcoin rose by 1136% in the 10 best trading days of the year, which is incredible.

Some entrepreneurs try to apply artificial intelligence and machine innovations to help traders manage emotions. Take Stock Cards, for example, a browser extension designed to help investors predict and prevent FOMO and panic.

Long-term Bitcoin investors are profiting from their HODL strategy, and the upward trend in 2021 has produced thousands of Bitcoin millionaires.


(This article is from Bitpush.News)