What Do Mainstream Investors Fear the Most? How Can Retail Investors Overcome Them?
A fan asked me. Mainstream investors love to exploit the fears, greed, and wishful thinking of retail investors, pushing the cryptocurrency market based on these human weaknesses. Mainstream investors are often at odds with retail investors, frequently spreading false information and creating fake breakouts to lure in and then cut off retail investors, taking advantage of their tendency to follow the crowd.
So, what do mainstream investors fear?
First, they fear retail investors seeing through their tricks. Mainstream investors like to 'wash the plate' and 'pump up' prices, scaring retail investors at the bottom and making it difficult for them to enter or forcing them to buy at high prices during a surge. If retail investors can see through this and remain calm at low levels while not chasing at high levels, maintaining their rhythm, mainstream investors will be at a loss.
Second, they fear disciplined retail investors. Mainstream investors specifically target those retail investors who chase rising prices and panic-sell, as they are easy to exploit. If retail investors have their own strategies, like mainstream investors suppressing false breakouts at low levels, entering the market in time, and decisively cutting losses at high levels to protect their capital, mainstream investors will have a headache, as there will be no one to exploit. Moreover, if retail investors have clear stop-loss and take-profit strategies, their losses will be minimized.
Third, they fear those who do not follow the crowd. Mainstream investors love to spread 'insider information' to lure in retail investors looking for shortcuts or trying to recover their investments quickly. But if there is real information, who would be foolish enough to spread it? They exploit retail investors' desire to make money easily to cut them off.
In short, mainstream investors exploit human weaknesses to harvest profits, while retail investors need to see through human nature, trade rationally, and set clear rules to avoid being exploited, and they may even profit in return. Recently, my friend Dao has been investing in Musk's little dog pp, which has low market value and high potential. The number of addresses holding Ether exceeds 16,000, definitely a big golden dog. Brothers who understand can like and ask me.