1. Blindly following the opinions of self-media personalities:
Many retail investors buy in during a bull market based on advice from self-media personalities, but without their own analysis and exit strategies. This leads to uncertainty about when to sell, continued holding during price declines, and ultimately larger losses after leveraging.
2. Shorting against the trend:
Shorting in a bull market is a high-risk behavior because the overall trend is upward. Even if there is a possibility of a pullback, short-term market fluctuations may lead to liquidation, especially in small coins.
3. Adding a large amount of principal in the later stages of a bull market:
Newbies often add a large amount of capital after seeing the market rise in the later stages of a bull market, but this is usually a signal of the market top. When a correction occurs, the losses can be significant.
4. Overusing leverage:
While leverage can amplify returns, it also magnifies risks. Newbies often start with a small multiple of leverage, but as greed increases, the leverage ratio also rises, leading to liquidation.
5. Heavily investing in a single non-mainstream asset:
Investors may concentrate their investments too heavily in a small coin, neglecting mainstream major coins. The probability of non-mainstream coins becoming mainstream is low, with high risk.
6. Frequent trading:
Overtrading can lead to high transaction fees, easily offsetting profits and even resulting in net losses.
7. Blindly bottom fishing:
Attempting to bottom fish during a market downturn without stop-loss and trading discipline leads to additional investments when prices decline further, ultimately exhausting funds when the real bottom arrives.
These methods are particularly dangerous in a bull market, as the market's rise conceals potential risks, causing you and me to easily overlook basic investment strategies and risk management.
I hope you can learn from these summaries to avoid repeating mistakes in future market cycles.
Pay attention to smart oil cakes, earn clearly, and understand losses.
