Your invested into a certain coin, for this example I will use Ripple. As you watch the market IOTA starts to jump significantly in price. So you sell your Ripple and buy into IOTA.
IOTA stops rising in price and either falls or stays the same. The next day you see Monero start to rise in price. So now you sell your IOTA and buy Monero.
Monero stops rising in price and either falls or stays the same. But now Ripple is rising in price from where you sold at. You haven’t made any profit from your trades and if you had just stayed in Ripple you would of actually gotten a profit.
This is why you do not want to chase prices. Coins will rise and fall. But if you diversify your portfolio and invest in strong coins, the odds your coin will rise in price is pretty good.
Best pic ever:
