Have you ever wondered why novices always lose money when they buy in the financial market? Just like last night, the shorts took advantage of the Americans' vacation and the Chinese's deep sleep to launch a surprise attack, rushing to 55k, breaking through the low of 56.5k on May 1, 2024. They wanted to draw a downward trend, and this goal was largely achieved by "washing" the novices.

The spot Bitcoin ETFs that have been touted by U.S. institutions in the past six months, as well as the newcomers attracted by the Bitcoin halving event, are the main targets of this market cleanup. They rushed into the market with hope, but often stood guard at high positions, disheveled in the wind.

The novice village in the financial market is completely different from the novice village in online games. There is no protection for novices here, but it is full of extra challenges. Both novices and veterans want to make money, but novices often have no chips in their hands, while veterans take the opportunity to sell and earn the funds of novices.

The fun of the financial market lies in its tricks. In a time section, you cannot see who is making money and who is losing money. You must examine the time dimension as a dimension to discover the secrets behind it. Just like those who sold at a high price of $70,000, they made money from those who sold at a loss later. If you can break through the one-dimensional thinking of the "arrow of time", you will find that making money and losing money can actually be transformed into each other.

However, what is more fatal is that this is far from over. Did those who sold $70,000 in March really make money? The answer depends on how you view "money". If you think that money is just an increase or decrease in numbers, then you are wrong. Because unless they never buy again, they will definitely buy again at a higher price one day in the future, resulting in a net loss.

Why do novices always lose money as soon as they buy? To a large extent, it is because their cognition is not deep enough and they do not understand the deep logic of the market. They are often confused by superficial phenomena and driven by the fear of missing out, so they go all in at high prices and suffer losses.

To avoid this situation, novices need to constantly improve their cognition and understand the laws of market operation. They need to learn to slow down and make decisions step by step instead of being driven by emotions. At the same time, they also need to do a good job of risk control and cash flow management to ensure that they have enough strength to cope with market fluctuations.

In short, the financial market is a place full of challenges and opportunities. If novices want to gain a foothold here, they need to continue to learn, improve their cognition, and be fully prepared to deal with various situations. Only in this way can they gradually grow into experienced investors and move forward steadily in this market.


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