The core reason ordinary people encounter losses in the process of trading cryptocurrencies is actually quite simple: they hold relatively small positions during price increases, but have substantial positions during price declines.
Why does this situation occur? To trace it back, it is a problem caused by trading habits.
For example, when purchasing a cryptocurrency that is on the rise, the initial position is relatively small. As the price continues to rise, there is a feeling of 'missing out,' which makes it difficult to resist the urge to increase the position. However, when a wave of price correction arrives, the small position's profits have not yet solidified, while the large position is already deep in losses. Of course, there are times when adding to a position is the right move, but given that trading cryptocurrencies is a long-term investment activity, such trading habits will inevitably lead to significant losses sooner or later.
To effectively avoid such situations, it is essential to abandon the bad habit of 'chasing highs and selling lows' and to achieve the ideal trading state of 'selling high and buying low.' Specifically, improvements can be made from the following three aspects:
First, implement a fixed position building strategy. Absolutely avoid arbitrarily changing positions to prevent excessive increase during price chasing.
Second, establish the principle of only reducing positions after building them. Once a position is constructed, subsequent operations should focus on reducing the position, rather than blindly adding to it.
Finally, adhere to the bottom line of not randomly building positions. Especially when the market trend is unclear, it is better to choose to hold and observe than to rashly enter a trade.
In conclusion, for ordinary investors, one must not blindly imitate those so-called 'cryptocurrency trading experts.' True investment experts possess their unique logical thinking and operational methods during trading activities, while ordinary investors urgently need to cultivate stable trading habits and gradually improve their investment level and overall quality.