Taboos of currency speculation: Four iron rules to teach you to stay away from the "leek" trap!
1. Heavy positions in unpopular altcoins
Remember, don't put all your funds into those unknown altcoins! These currencies often lack solid support and liquidity. Once the market is disturbed, your investment may be lost. The fantasy of getting rich overnight will only make you fall into a deeper quagmire.
2. Add positions when there is a floating loss, and the more you lose, the more you lose
When you lose, don't blindly add positions in an attempt to recover losses by increasing your holdings. This vicious cycle of "the more you lose, the more you lose" will only make your financial black hole bigger and bigger. Remember, investment is not gambling, it requires calm analysis and decision-making.
3. Superstitious technical indicators and ignoring fundamentals
Although technical indicators can provide a certain reference, they must not be used as the only basis for decision-making. Over-reliance on technical indicators and ignoring the fundamentals and actual trends of the market will only make you miss real investment opportunities. Investment requires comprehensive consideration, and don't be confused by a single indicator.
4. Frequent trading, pursuit of short-term profits
Frequent trading will not only increase transaction costs, but may also affect your mentality and judgment. Pursuing short-term profits while ignoring long-term investment value will ultimately only make you lose your way in the currency circle. Remember, investment is a marathon that requires patience and perseverance.
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