1. Why do most retail investors lose money? It’s not that retail investors don’t know how to choose coins. A big reason is that retail investors don’t know how to operate. They either operate frequently or enter the market with a full position, and they don’t understand the general trend of the coin market.
I watch the market every day when I have time. I get nervous when I see a decline and want to make a move. As a result, I easily miss the big market. Sometimes the coin has an obvious downward trend, but I still have to hold on. Short-term operations turn into long-term holdings, and I end up losing more and more. The correct operation is to choose a coin with good project fundamentals and good growth potential. As long as it is in an overall upward trend, you can keep embracing it.
2. Falling brings opportunities, rising brings risks. Retail investors often like to chase rising prices and are afraid of falling prices. They feel uncomfortable when they see that the coins in their hands do not rise for a day, so they want to chase the rising coins, but the result is that they always stand guard at high positions. They cannot stand the big adjustments of the coins in their hands, and they do not care about the general trend of the coins. The result is that they miss the strong coins and miss the big profits. In fact, falling prices are opportunities, especially the shrinking callback in the rising trend. This opportunity is a golden pit.
3. Only operate within your own system. When you have your own operating system, you will find that it is easy to trade in cryptocurrencies. You will no longer be attracted by market hot spots, but will be calm. For example, if I am doing trend value operations, I will only look for undervalued sectors with good fundamentals, and then add them to my own selected sectors. When market funds enter the market, I will follow the trend operations, leave after making money, and look for the next target. It is clean and neat. Therefore, I rarely get stuck at high positions. It is only possible that the price trend of the currency is not as expected, and I will leave the market in the end.
4. Set up stop-profit and stop-loss. Cryptocurrency trading is a probabilistic event, with success and failure. For most cryptocurrency traders, setting up stop-profit and stop-loss is very important.
When the price of the currency is not as expected, or falls below the trend, then you must stop loss unconditionally, and don't waste time. Similarly, the price of the currency has already made a lot of profit, and it is a good decision to leave at any time. Don't feel sorry. Very few people can withdraw at the highest point. It's almost enough for us to leave at a relatively high point.
5. Learn to split positions and don’t put all your eggs in one basket. For example, if you are very optimistic about a coin and enter the market with all your positions, but end up being trapped by 10%, you have no choice but to stare blankly. However, if you enter the market with 30% of your positions, you can choose to cover your position or leave the market, because the loss will not have a big impact on the overall situation.
6. Be patient. Waiting is also a kind of operation. We are not gods. It is impossible to make money as soon as we enter the market. Many times we need to wait, and time can make up for the mistakes in operation level. If you are not good at trading coins, then use time to make up for it.