1. Likes to trade frequently.
In a bull market, many people lose money due to frequent trading.
For example, if a certain altcoin rises by 100% and you sell thinking you've made a profit, it may actually be due to a larger market trend.
Then, you see it rise another 100%, unable to resist chasing the price, only for the market to suddenly crash, leading to a breakdown in mindset and forced to sell at a loss.
Warren Buffett once said: 'Wall Street makes money through constant trading; you make money by being immovable as a mountain.' This statement is very reasonable.
Bitcoin rose from $1,000 to $70,000, experiencing countless ups and downs along the way.
Some people earn cyclical money, some earn money from mid-term fluctuations, but some earn by being immovable as a mountain.
In a bull market, hold on to your coins and don't sell easily, as the real big trend has not yet arrived.
2. Only buy altcoins, do not buy mainstream coins.
Many newcomers only buy altcoins because they think the price of mainstream coins is too high and hope to achieve higher returns through altcoins.
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But many people only see the profits and not the risks.
I have always suggested allocating a large position to mainstream coins because, at critical moments, mainstream coins can help stabilize our mindset.
For example, in this ETF bull market, Bitcoin hasn't dropped much, but many altcoins have plummeted, with some even halving. If you only hold altcoins, your mindset is already broken.
We often say that high risk brings high returns, but this statement is often misunderstood. Many people think that taking high risks will definitely lead to high returns.
But in reality, high returns are low-probability events. While pursuing high yields, be prepared to face high losses.
In the crypto world, investment opportunities are always abundant; the most important thing is to survive.
3. Short-termism.
Many newcomers only focus on short-term trends, drawn in by sudden surges. However, this is when the risks are highest, which is also the first tuition fee many newcomers pay upon entering the crypto world.
If your capital is small, don't rush, and don't gamble. The more anxious you are, the harder it is to make money; wealth does not enter through a rushed door. If you choose to gamble, you may end up with zero funds.
Warren Buffett said: 'Uncertainty is the friend of long-term value investors.'
When the market is full of uncertainty, choosing quality investment targets and holding them for the long term, becoming a friend of time and acting in accordance with the trend, will likely allow you to make money.
4. Likes to operate in reverse.
Some people like to operate in reverse, without a deep understanding of the project, not knowing why the price is falling.
Just seeing the price drop significantly and buying in to hope for a rebound can lead to being deeply trapped.
Warren Buffett said: 'Be greedy when others are fearful, and be fearful when others are greedy.'
This statement is correct, but the premise is that you must have in-depth analysis, ensure the safety of your principal, and have reasonable expectations for returns.
So, when trying to pick the bottom, don't blindly enter just because the price is dropping. Understand the fundamentals of the project and do your homework to better seize opportunities.
5. Likes to use leverage.
Some people like to increase their returns by trading contracts with leverage, but it is actually very dangerous.
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Even with low leverage, a market decline of 50% is possible. Especially in the altcoin market, using leverage requires extra caution, as explosive leverage in the crypto world is not uncommon.
6. No trading plan.
Whether it's short-term or long-term, you must have a clear trading plan and strictly execute it.
Many people have plans but find it hard to execute them because they cannot overcome greed and fear.
The simplest method is to formulate a trading plan, set target prices, and place buy and sell orders in advance, not giving yourself opportunities for regret and hesitation.
Then, you can do your own things because trading cryptocurrencies is not everything in life. Reduce trading, read more books, or go exercise.
It's best to write your trading plan down; regardless of whether you lose or make money, always record it. This makes it easier for you to summarize and review your experiences later.
7. Investing recklessly in unfamiliar fields.
Many people invest recklessly in fields they are not familiar with.
Warren Buffett once said: 'The important thing is to know what you know and to know what you don't know.' This statement is very reasonable.
If you don't understand a certain field, don't invest lightly. Understanding your circle of competence is a long and important process, and there are no shortcuts.
Remember, you will never earn money beyond your cognitive range; blind investment will only lead to total loss.
8. Borrowing money to trade cryptocurrencies.
Some people like to borrow money to trade cryptocurrencies, especially those without a stable income, which can make their mindset very unstable.
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When you invest with borrowed money, any loss will be magnified because you have to face not only market risks but also the pressure of repayment.
In such cases, the mindset can easily collapse and lead to distorted trading.
9. Recklessly expose your assets and earnings.
Some people like to show off their earnings and asset charts; unless you have a special purpose, doing so will only invite jealousy and trouble. It's better to keep a low profile.
Also, don't flaunt your wealthy life on social media; aside from close family, few truly wish for you to be better off than them. Excessive boasting will only invite unnecessary jealousy and trouble.
10. Likes to curse at people.
Some people like to curse at others casually, but in fact, doing so is not beneficial for oneself.
'The use of etiquette values harmony,' getting angry will only affect your financial luck.
When encountering those who drain your energy, the best way is to stay away from them directly, no need to say much.
