Recently, a fan asked me a question: He said that he had been in the cryptocurrency circle for more than 3 years and 2 months, with a principal of 100,000 yuan, and had experienced a bear market and this bull market. Why is he still spinning in circles, not making money, and even starting to lose money? His current position is only more than 80,000 yuan.
When I heard the time when he entered the circle, I already understood why he didn't make money or even lost money.
More than 3 years ago, it happened to be the first year of the bull market, which was the beginning of 2021.
In order to verify my idea, I asked him three questions.
1. When you first entered the circle, did you buy small positions first and then large positions in the process of making money?
2. Do you basically only buy and rarely sell? Or do you constantly change positions and increase positions based on market sentiment and news?
3. Last year and the end of the year before last, when the mood was very bad, did you sell at a loss after the sharp drop, and then buy back when you saw the market rising?
Unsurprisingly, basically all three of these are true.
In fact, his situation is basically the same as that of many retail investors.
Take this round as an example, there are a total of three major opportunities to buy at the bottom. No matter which one, as long as you seize it, you can basically at least double your position. According to the increase in the price of the pie, it should also be achieved.
However, the real bottom-fishing tests everyone's emotions and ability to control positions. Few people can do it, and I am one of them who can do it.
In this circle, there are many people who lose money, accounting for 80%, and these people have the following common situations:
1. No concept of the cycle.
2. No management of positions.
3. No control over emotions.
The above three points will cause bull market chasing, bear market selling, FOMO when it rises, and spray when it falls.
I have made advance arrangements during the bear market. When entering this circle:
First, you must be prepared for a 50% retracement of the principal, so you cannot take out a loan or take key funds to gamble, because "important funds" determine how big the pattern is.
Secondly, you must look at the cycle accurately. It is best to plummet. After a period of decline, find the bottom of the box and arrange in batches to pull to a relatively bottom price, then ensure a good mood and operate less.
The most important strategy for exiting is to be conservative in the currency standard, double half, and then every 50% increase, take out 10%, you can get the dividends of the entire bull market and will not be hurt.
When to buy is crucial. This is relatively simple, but it seems to be a bit difficult for most people, because they missed the opportunity and were not patient enough to wait.
Most people lose money in the bull market for this reason.
For cryptocurrency trading, most of the time should be spent waiting, waiting to buy, waiting to sell, and the operation time should not be even one percent.
Those who can do this will of course be hurt in the retracement last month (human nature), but in the long run, they must have accumulated enough wealth.
In the absence of desire, getting results often means seeking but not getting, and not seeking but getting. Do what you should do, stick to what you think is right, strengthen your ability, and the rest should be done without desire.
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