The market is impermanent and unpredictable: the rise and fall of the market is often not controlled by personal will, so we should not easily predict the top or bottom of the market. Just as many people have doubted whether Bitcoin can stand at a certain high price, but the madness of the market is often beyond our imagination.
Building positions in batches to reduce risks: Building positions in batches is an effective risk management strategy. Through small and multiple transactions, we can effectively reduce the risk of a single transaction, and at the same time have more opportunities for trial and error and adjustment. This strategy is especially important for investors with smaller funds.
Understand the main cost: In the currency market, the main force often needs to invest a lot of money in various expenses, such as publicity and distribution fees, chip fees, development fees, etc. Therefore, we cannot judge the true value of a currency based solely on short-term price fluctuations. We need to understand the cost structure of the main force so as to more accurately judge the long-term trend of the market.
Seize the bull market opportunity: The bull market is the best time for investors to turn over. In the bull market, the overall trend of the market is upward, which provides investors with more profit opportunities. However, we also need to be alert to the risks of the market and avoid blindly chasing highs in the bull market.
Limitations of technical indicators: Although technical indicators can provide some useful market information, they often have lags. We cannot rely solely on technical indicators to make buying and selling decisions, but need to combine the market's fundamentals, news and other factors to comprehensively analyze the market.
Confidence and persistence: In the cryptocurrency market, confidence and persistence are very important qualities. We need to believe in our investment strategies and decisions, but also need to maintain patience and perseverance, and continue to learn and adjust our investment strategies. Only in this way can we succeed in the long run.