The price of Bitcoin has soared, directly breaking through the $81,000 mark, just looking at it makes your heart race.
But did you know? Even in such a bull market, there are still people losing money!
When we are in the cryptocurrency space, we must always stay clear-headed, treat things calmly, and not act impulsively. In the crypto world, impulsiveness is the devil; one misstep can turn you from wealth to debt, especially for us retail investors, caution is key.
To be honest, this market is even harsher than the 80/20 rule; the 90/10 rule would be considered polite. Those who can enter the 20% of people who don’t lose money are already experts. But don’t forget, not losing money doesn’t mean making money; there’s still a long way to go in between.
Take my surroundings as an example; during the last bull market, everyone was full of confidence wanting to make big money, but what happened? Now, 80-90% have exited the market, and among those left, even though Bitcoin has reached a historical high, they are still losing money. This is the reality of the crypto world, cruel and realistic.
So, when we trade, we need to clarify our positioning and goals. Are you doing short-term, swing trading, or contracts? Don’t try to do everything; in the end, you won’t do anything well. As I said before, if you are focused on short-term candlestick trading, then bull and bear cycles are just decorations for you.
The most important thing is that we need to change our mindset and have the correct understanding. Don’t let temporary success cloud your judgment, and don’t let temporary failure undermine your confidence. If your mindset is wrong, then the results will surely not be good.
Also, many people cannot understand market trends, cannot distinguish the transition of cycles, thinking they are following the trend, but in fact, they might be going against it. In this way, when the market corrects and they are stuck, they hold on tightly, waiting for the main upward wave of the bull market to come, but out of fear of losing the profits they have made, they end up selling everything.
In fact, bear markets do not let retail investors and newcomers lose big money; fear and anxiety in bear markets won’t lead to significant losses. The real money loss happens in bull markets because that’s when greed and ignorance take over, with no respect for the market.
So, we must always stay clear-headed and not let the results brought by trends cloud our judgment. Remember, that is not a result of your own abilities; don’t regret it when the nightmare begins!
