So, how can we avoid losses in this wave of market? Here are 10 deadly mistakes and ways to avoid them:
1. Not setting clear profit targets
How to avoid: Set clear profit targets before each investment; gradually take profits in stages to ensure early locking in of gains and avoid giving back profits.
2. Following the trend without a plan
How to avoid: Have a clear reason for entering the market, don’t just buy because others say it’s good; avoid impulsive trading due to fear of missing out (FOMO).
3. Ignoring risk management
How to avoid: Diversify investments; some funds can be moved to stablecoins and other low-risk assets; set stop-loss orders to ensure that no single investment poses a significant risk.
4. Lack of patience, exiting too early
How to avoid: Trust your research, avoid frequently checking prices and selling too soon; give your investments enough time to mature and let the market find its own path.
5. Overly complex trading strategies
How to avoid: Keep strategies simple, relying only on a few key market signals; avoid over-analysis that leads to procrastination and hesitation in decision-making.
6. Overtrading, evaporating profits
How to avoid: Reduce trading frequency and focus on a few confident trades; let investments grow on their own, without the urgency to make money every day.
7. Giving up on well-performing investments
How to avoid: Don’t sell assets that are performing well just because you want to find new opportunities; let those well-performing assets continue to appreciate.
8. Overconfidence, increasing risk
How to avoid: Stay humble and respect the uncertainty of the market; control your positions and avoid taking on too much risk due to overconfidence.
9. Over-diversification
How to avoid: Focus on 2-3 projects that you truly understand and trust; quality is far more important than quantity, so don’t try to diversify too much.
10. Chasing unrealistic hundredfold returns
How to avoid: Invest in high-quality projects with strong fundamentals and real applications; remember, true massive returns often come from holding high-quality assets for the long term.
In a bull market, making profits not only requires seizing opportunities but also learning to avoid risks. By setting clear goals, developing strategies, managing risks, and remaining calm, you can avoid these common mistakes, maximize returns, and maintain long-term success.