Imagine someone named Xiao Ye, who works the evening shift at a neighborhood convenience store. When there are few customers, he props his phone up beside the cash register and watches the market. But when prices surge too quickly, he often doesn't dare to act, afraid that the price will rise again right after he sells.
On November 6, $ZIL opened at 0.001646. He bought some at that opening price. It first dipped to 0.001643 that day, just 0.18% below the opening price of 0.001646. Later, it reached a high of 0.001987, 20.72% above the opening price of 0.001646. Looking at the high, he thought he would wait for it to stabilize a bit before selling, but he never got around to it. It closed at 0.001758, 6.80% above the opening price of 0.001646. From the high of 0.001987 back to the closing price of 0.001758, it had fallen 11.52%.
On November 7, it opened at 0.001761, just 0.17% above the previous day's close of 0.001758. He thought it might reach the previous day's high of 0.001987 again. That day, it first rose to a high of 0.001857, 5.45% above the opening price of 0.001761 and 12.82% above his cost of 0.001646, but 6.54% below the November 6 high of 0.001987. It then dipped to 0.001669, 5.22% below the opening price of 0.001761. It closed at 0.001682, 4.49% below the opening price of 0.001761 and just 2.19% above his cost of 0.001646. From the November 6 high of 0.001987 to the November 7 close of 0.001682, the price had fallen 15.35%.
Xiao Ye later told a coworker on the same shift: “I bought at the November 6 opening price of 0.001646. It reached a high of 0.001987 during the day, 20.72% above my cost, but I was afraid of selling too soon, so I did nothing. By the close, the gain was down to 6.80%. The November 7 close was 0.001682, just 2.19% above my cost.”
If you caught a price surge of 20.72% above the opening price during the day but didn't sell, and by the next day's close it was only 2.19% above your cost, would you still hold on to that intraday gain because you were afraid of selling too soon?
On November 6, $ZIL opened at 0.001646. He bought some at that opening price. It first dipped to 0.001643 that day, just 0.18% below the opening price of 0.001646. Later, it reached a high of 0.001987, 20.72% above the opening price of 0.001646. Looking at the high, he thought he would wait for it to stabilize a bit before selling, but he never got around to it. It closed at 0.001758, 6.80% above the opening price of 0.001646. From the high of 0.001987 back to the closing price of 0.001758, it had fallen 11.52%.
On November 7, it opened at 0.001761, just 0.17% above the previous day's close of 0.001758. He thought it might reach the previous day's high of 0.001987 again. That day, it first rose to a high of 0.001857, 5.45% above the opening price of 0.001761 and 12.82% above his cost of 0.001646, but 6.54% below the November 6 high of 0.001987. It then dipped to 0.001669, 5.22% below the opening price of 0.001761. It closed at 0.001682, 4.49% below the opening price of 0.001761 and just 2.19% above his cost of 0.001646. From the November 6 high of 0.001987 to the November 7 close of 0.001682, the price had fallen 15.35%.
Xiao Ye later told a coworker on the same shift: “I bought at the November 6 opening price of 0.001646. It reached a high of 0.001987 during the day, 20.72% above my cost, but I was afraid of selling too soon, so I did nothing. By the close, the gain was down to 6.80%. The November 7 close was 0.001682, just 2.19% above my cost.”
If you caught a price surge of 20.72% above the opening price during the day but didn't sell, and by the next day's close it was only 2.19% above your cost, would you still hold on to that intraday gain because you were afraid of selling too soon?