-31% drop, $MUBARAK was smashed all the way from 0.0873 to 0.05005, and the trading volume is still 438M—showing that both the ones cutting losses and the ones trying to catch the bottom are frantically switching hands. The most common mistake in times like this is: taking "it has fallen so much" and treating it as "it’s cheap."
After 31 percentage points, many people’s minds automatically pop up the words "a rebound is imminent." But the magnitude of the drop is never a valuation basis. A 30% fall in $MUBARAK doesn’t mean it’s worth more than yesterday; it only means those who bought yesterday are bleeding today. I’ve seen too many people use "it’s already down so much" as a reason to bottom-fish, only to watch it fall another 31%.
The real signal is when the buying/selling volume finally runs out—not how far the price has dropped. With 438M in trading volume right in front of you, bulls and bears are still fighting. Entering now is just feeding fuel to the market.
In a sharp sell-off, "cheap" is an illusion. Wait until nobody’s talking about it anymore.
After 31 percentage points, many people’s minds automatically pop up the words "a rebound is imminent." But the magnitude of the drop is never a valuation basis. A 30% fall in $MUBARAK doesn’t mean it’s worth more than yesterday; it only means those who bought yesterday are bleeding today. I’ve seen too many people use "it’s already down so much" as a reason to bottom-fish, only to watch it fall another 31%.
The real signal is when the buying/selling volume finally runs out—not how far the price has dropped. With 438M in trading volume right in front of you, bulls and bears are still fighting. Entering now is just feeding fuel to the market.
In a sharp sell-off, "cheap" is an illusion. Wait until nobody’s talking about it anymore.