In the current market environment, why do many people lose money instead of making money?
I believe that at this stage, if you don’t make money, you will feel a little anxious. The group is full of comments every day: "Fuck, it’s taking off!", "Damn, this push back feeling is so cool!", "Damn, the inner plate is stuffed with X SOLs, and now it has doubled X times!" and so on. However, once you get into the market, you always lose money.
In the first-level "dog-beating circle", there is a law of bad luck: group members always make money, and you lose money as soon as you get in. Why is it always you who are unlucky? There are reasons. Here are a few reasons to see if you are suitable!
1. Circle - Are you in a circle where information flows and get first-hand information?
2. Cognition - Do you have enough understanding and analysis ability of the market?
3. Courage - Do you have enough courage to make decisions under high risks?
4. Experience - Can past investment experience help you make wiser decisions?
5. Bullets - Do you have enough funds to support your investment strategy?
6. Extremely fast information source - can you quickly obtain and process information about changes in market hot spots?
Lacking one of these elements and blindly entering the market often leads to capital losses or even direct zeroing.
When the bull market comes, there are always various temptations to consume your principal. Profit drawdown is not terrible, but when the bull market comes, you have no principal. For those who have no experience in "beating dogs", they should still focus on the areas they are good at. When you want to step out of your comfort zone, you often have to pay a high tuition fee. If you have unlimited bullets, just ignore what I said.
The same is true for contracts. If you really want to play, it is recommended not to exceed 5X leverage.
I wish everyone can make a lot of money in this bull market!