Let me analyze the psychology of people who miss out on opportunities and the reasons why many people lose money in the short term.
Psychology of the person who misses out:
Starting from 28,000, Bitcoin is currently just rebounding, and the rebound is for a better waterfall. The technical perspective shows that there will be a bigger waterfall behind it.
It’s not 30,000 at all if it’s less than 30,000. It’s just a technical rebound. It didn’t break through the previous high. It’s just to get retail investors on board.
It's now 31,000. If you don't believe me, I believe there will definitely be one last drop. I haven't gotten on board yet. I'm looking for an opportunity to short.
The price is now 32,000. I guess it’s a direct reversal? I won’t miss out. I’d better wait a little longer.
Then BTC keeps going higher and higher, and seeing the market sentiment getting more and more excited, you go all in with a large position, and then the callback comes.
Reasons for short-term losses:
Every time there’s a slight pullback, I think to myself, I bought at such a high position; it won’t rally, and if it drops, I’m done, so I’d better stop-loss quickly.
Did I just blow up as soon as I stop-loss? What’s going on? After a few operations, my money keeps decreasing while Bitcoin keeps rising.
Losing money in contracts:
The first kind, I short and stop-loss, it doesn’t work so I go long, and as soon as I do, it drops, damn it, hurry up and stop-loss, and as soon as I stop-loss, it rallies.
The second kind, am I a fool for insisting on trading a falling imitation contract? Stop-loss and I get liquidated.
The third kind, I missed out on spot trading, I must open a hundred times and go long, but as soon as I enter, it crashes, and I get liquidated again.
These are the various mindsets of novice traders that I’ve witnessed along the way; very real and very helpless.
Many people incur losses and always say it’s due to their lack of skills.
In fact, there is such a rule in the financial market.
In the long run, good assets do indeed keep rising. However, during the process of rising, most of the time they are actually declining. The time spent rising might only account for 10%. The time spent in a major rise accounts for 5% of that 10% of rising time. In other words, you make big money in just a moment; if you miss that 5% within the 10%, you lose out on significant profits.
If you don't believe it, you can open your trading software and check any asset.
Any asset's pattern is like this: the first phase is consolidation and fluctuation, the second phase is takeoff, the third phase is peak formation, and the fourth phase is decline.
Regular investment is perfect for buying in the first phase, the second phase. The third phase is for selling. The fourth phase can be for buying some, or you can choose not to buy.
Many people always ask around, at which point can I bottom-fish?
In fact, if you want to buy, there’s no need to hesitate. You’re asking how to buy to make the most profit, not what range I can buy to get decent returns.
Your mind is constantly thinking about making the most money with the least amount of money.
Buy at the lowest, sell at the highest.
Once you have the concept of bottom-fishing and the idea of top-tapping in your mind, that’s when the loss begins.
You just need to know to buy during a pullback, hold for a few years, and the probability is that you will make 3-5 times. So why not consider buying? What’s there to hesitate about? Opportunities are fleeting in such hesitation and indecision. It’s not just in the crypto space; it's the same in other places. Character ultimately determines fate.
I’m done writing, keep it up, I am Wanshu.
Currently, the situation is dynamic, and we almost share passwords every day.
Still the same saying, if you don’t know how to do it, click on my avatar, follow me, spot planning, contract passwords, and I will share for free.
I need fans, you need references. Guessing randomly is worse than following.
