Why do many people come into this industry and keep losing money, and it gets worse and worse over the years?
The reason is that they are constantly summarizing their failed experiences.
Every time they lose money, they have different experiences to summarize, but they are all failures, and the financial market changes in countless ways, making it impossible to exhaust the lessons of failure.
Take the market in the past six months as an example: Bitcoin dropped from 73,000 to around 50,000; when it rebounded for the first time, they didn't sell, and when it rebounded for the second time, they still didn't sell, concluding that they shouldn't hold on too tightly.
After that, when Bitcoin rose to around 70,000 for the third time, they sold, only to see it surge to 80,000. Oh no, the recently summarized experience was a mistake.
Then, when Bitcoin reached 80,000, they thought it would drop and continued to wait, only to see it rise to 90,000, still waiting, and then it reached 100,000 and they started summarizing again, concluding that they should hold long-term, that the bull market has arrived, and not to miss out.
However, as soon as they entered the market, oh no, it dropped again.
There are many other failed experiences, such as buying altcoins earlier, then seeing that altcoins weren't rising and concluding that 'there is no bull market for altcoins anymore,' selling their altcoins, only to see them rise again recently, and then summarizing that 'altcoins are about to take off,' only to enter the market and see them drop by half recently.
This is the consequence of thinking that they have been in this circle for a long time, have experienced a lot, and have gained experience.
Yes, they do have experience, but it is all failed experience, not how to succeed.
They just summarize after the fact, thinking that they shouldn't have entered at that position, and that they should have sold at that position, and after the market moves, they summarize how they failed, which is meaningless.
What should truly be summarized?
What should be summarized is: I didn't enter at this position, and it went up afterward, so how can I identify when the market has stopped falling and can enter at the 3rd position?
What should be summarized is: The market dropped significantly, I got trapped, but I should have sold at this position because I failed to identify the signals. Next time, how can I recognize such signals as sell signals so that I can sell in time and avoid being trapped?
