Participating in this round of BTC market, you must avoid the psychological account trap

Everyone who wants to participate in this round of market must avoid misunderstandings. The first misunderstanding is called the psychological account theory:

What is my cost price? How much did I earn today? How much did I lose? If you have this mentality, you will definitely not be able to invest well. Put all these things aside.

This is why Buffett doesn't even look at the market. What is Buffett busy looking at? Looking at financial statements.

Fans often ask me, what should I do if I lose today, what should I do if I earn today?

What if I bought it for 10 yuan and it has now fallen to 6 yuan?

What if I bought it for 10 yuan and it has now risen to 15 yuan?

This is all wrong thinking. I call it the psychological account trap. Does the rise and fall of the stock market have anything to do with how much you lose or earn, and how much money you buy a certain stock?

In fact, it has nothing to do with our rational thinking. Just like some people say that the market is volatile today, some people say that they have earned 20%, and some people say that they have lost 5%. These things are not important at all. What is the most important thing?

We use funds and news! There are also fundamentals to analyze the future trend of this market. Are we still in the bull market? What stage of the bull market are we in?

We have a clear judgment on the direction. As for whether I make a little today and lose a little tomorrow, it doesn’t matter what the cost price is.

If I judge that the market has been over-bubbled, Bitcoin has begun to tighten, and the valuation is too high, I will sell it. Who cares how much I make?

If you think the bull market is still there! ! Capital is still protecting our market, the good news is still increasing, and a steady stream of incremental funds is still entering the market. Moreover, the valuation is at a historical low, and the Federal Reserve is still cutting interest rates to open up our space, then it is still in the bull market.

What changes have there been in the economic fundamentals and capital? There are no changes. Tell me how much you made today, how much you lost, how much the holding cost is, and how much each coin costs is not important. If you can't let go of the misunderstanding trap of your mental account, you can't make a good investment!