Why do most people still lose money in a bull market?
1. Poor timing:
Even if the opportunity is seized, managing positions is still a challenge. It’s easy to get frightened during market corrections, leading to frequent chasing highs and cutting losses.
2. Wrong choice of cryptocurrency:
The coins bought do not rise, while those held by others do. After being unable to bear the psychological gap, they sell at a loss and switch positions, resulting in being stuck, cutting losses again, creating a vicious cycle.
3. Lack of understanding of cycles, lack of rhythm:
Easily influenced by market sentiment, lacking clear expectations for the peak cycle and target positions.
4. Blind confidence at high positions:
As prices rise, confidence increases, even to the point of borrowing or selling homes to enter the market, with the crazy atmosphere of the bull market making inexperienced investors particularly evident.
5. Lack of awareness and learning:
Unwilling to spend time and energy improving understanding, lacking summary and reflection. High leverage, heavy betting becomes the norm, trading lacks logic and planning, falling into a day-to-day gambling operation, lacking a long-term stable trading system.
6. Not understanding stop-loss:
Blindly following trades without setting stop-losses leads to unplanned and continuous accumulation of losses.
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