People are not confused by the things themselves, but by their views on those things-- Ancient Greek philosopher
A book states: "Mediocre generals, when faced with complex environments, will list a pile of difficult problems and question marks for themselves, getting overwhelmed and unable to find direction. A true general, however, cuts through the confusion with a sharp knife, seeing the essence and crux of seemingly ordinary situations at a glance, and acts decisively." This is similar to investment decisions; excellent investors are adept at identifying the main contradictions in both the market and companies, and can see the details.
The 'logical fulcrum' that forms the overall and final decision.
What is mindset? Simply put, mindset is your attitude towards things. There is also a more advanced version that says, mindset is simply having a bigger heart.
The importance of mindset for a person is self-evident; mindset determines destiny. Those with a good mindset often have better opportunities, healthier minds, and find it easier to be happy. Those with a poor mindset, filled with grievances, will miss many opportunities.
The most important point in entering the speculative circle is to control your mindset. Next comes technical analysis, fundamentals, and news. If your mindset collapses, then you are doomed to lose money, and your life and spirit will be greatly affected. Most retail investors have fragile hearts; only a few can truly comprehend!
So how to control your mindset?
Here’s a little advice I hope will help you.
1. Understand the essence of speculation: distinguish between primary and secondary, mainly speculate while treating it as a side business, consider it a new way of financial management, an ability to earn extra money. Of course, if you take it as your main job (professional speculator), then I won't say anything.
2. No need to watch the market every day: there is no need to watch the market every day. Watching the market is the duty of insiders. Most people just need to slowly invest spare money, wait for it to grow in the pool, and then scoop it up later. Speculating on coins is that simple, not as complicated as you think.
3. View the ups and downs calmly: in the process of investing, we need to maintain a calm mindset to view the situation, not to calculate every day how much we have lost or gained. Because regardless of the commodity, prices will always fluctuate within a cycle; they will drop when crazy and will recover during a downturn. These fluctuations are normal; if you worry too much about short-term gains and losses, your mindset will follow the price fluctuations, and in the end, you will definitely be the loser.
4. Remember not to be greedy: there’s no need to expect to buy at the bottom and sell at the top every time, avoid greed and panic, and view every market fluctuation with a calm mind. Avoid greed and panic, and don’t seek to become an expert in buying at the bottom and selling at the top; just go with the flow to achieve success. Otherwise, you may not be far from joining the ranks of 'experts' in buying high and selling low. Many investors hope to become experts in 'buying low and selling high' during live trading, always wishing that every trade can be perfect. In practice, this method may be a losing proposition. No one will care how much effort you put in, how tired you are, or how much it hurts when you fall; they will only see where you end up and then envy or scorn you. So, if you can’t do it alone, you need to find a way to win together!
5. Control the emotion of chasing after rising prices: chasing after highs and selling when there is a drop, selling at a loss every time the market dips.
6. Learn more knowledge: understand the essence of digital currency, learn more, and turn speculation into an investment. Your mindset will undergo a complete transformation.
7. Don’t be blindly pessimistic: people always say the market has dropped by half, optimistic people always say, 'Hey, you see the market value still has half.' Pessimists see a half-empty cup, while optimists see a half-full cup. Please maintain an optimistic mindset and don’t be swayed by the majority; after all, success belongs to the minority.
8. Not losing is also a gain: better not to earn than to lose money. For investors, not making money and losing money are two different concepts. Not making money indicates that many times your analysis and judgment are correct, but you didn't dare to stick to your views, lacked the courage to enter the market, and lost a profit opportunity. There will still be countless opportunities in the future. As long as you can summarize past lessons and maintain a good mindset, you can still earn profits.
Mistakes made in your 20s are better than those made in your 40s, errors involving $1,000 are better than those involving $100,000. Learn from them and move on. When you do these few things and set reasonable expectations for returns, the temporary fluctuations in coin prices will no longer affect your mood.
In these days, I am preparing for the upcoming layout of the divine order!!!
Comment 168 to get on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things are said three times!!!
