The cryptocurrency market fluctuates, and do not lose rationality amid concerns of 'not rising for long' and 'friends making money'
In the tides of the cryptocurrency market, the worries of 'not rising for long' and the stimulation of 'friends making money' have caused many people to lose the ability to make rational decisions under the intertwining of fear, uncertainty, and social pressure, thus falling into decision-making dilemmas.
This may lead to distractions, blindly chasing hot trends while neglecting key trades; being unable to hold assets long-term or even distancing from the market due to pessimism and hesitation; lacking research and faith in projects, making it difficult to cope with volatility; and being eager to liquidate due to fear of market downturns, missing out on profit opportunities.
In the face of these issues, investors should focus on key points, concentrating on one or two specific fields or hot narratives within the blockchain, clearly choosing between on-chain or secondary trading directions, and accurately positioning high-return areas by combining their own capital, advantages, and market environment, avoiding blind involvement in all areas. At the same time, it is crucial to clearly define whether one is investing, trading, or speculating, and to formulate strategies accordingly, without confusing concepts.
Formulating and adhering to a clear action plan is also essential, including determining the market capitalization range for entering the market, setting rules for profit-taking in batches, estimating asset target prices and realization times, and clearly defining stop-loss conditions, adjusting strategies flexibly based on changes in fundamentals, technicals, and the macroeconomic environment.
Investors also need to profoundly understand their weaknesses, such as deficiencies in experience, technology, psychology, capital management, and time; if the disadvantages are significant, they should decisively abandon competition and focus on their strengths. After each trade, it is important to reflect on the reasons for success or failure, continuously improve operational processes and decision-making methods, accumulate experience to improve win rates, and appropriately increase position sizes when hit rates improve, avoiding meaningless entanglement and repetition.
Furthermore, in the cryptocurrency market, do not fight alone; reliable partners are indispensable. They can supervise behavior and compensate for shortcomings, and quality trading opportunities often arise from teamwork. Focus on the quality of partners rather than quantity, choosing traders who are at similar or higher levels in the areas of interest, while also broadening horizons, establishing small circles in different fields, obtaining key information such as macro trends, optimizing overall market perception and strategy formulation, thus steadily moving forward in the fluctuations of the cryptocurrency market and seizing profit opportunities.