Three Common Issues That Hinder You from Earning a Million a Year in the Cryptocurrency Market
1: Holding on to losses indefinitely, selling immediately upon making a small profit or breaking even, without considering trends or trading volume, only focusing on your own account's profit and loss, ultimately resulting in unlimited losses and minimal profits.
The correct approach should be: hold onto profits indefinitely, set stop-loss at the cost price, let profits run, and exit early if the trend does not meet expectations. For example, if your loss reaches 5% of your principal after buying, you can take a step back; at 10%, you should take profits. Even if you only have a 50% win rate, your returns will still be positive. However, the difficult part is human greed; very few people can achieve unity of knowledge and action.
2: Ignoring trading volume. Many retail investors buy cryptocurrencies without looking at trading volume or studying it. The price of a cryptocurrency rises only when real money enters the market, yet most retail investors overlook this indicator.
3: Holding too many coins. Retail investors often have limited capital but hold dozens of different cryptocurrencies, hoping that one of them will increase a hundredfold and make them rich. This is a misunderstanding; after diversifying funds, the profits from any increase are minimal. Typically, only a few coins rise, while all fall together during a downturn. The key point is that no one can hold onto a coin that increases a hundredfold unless they forget about it and rely on luck. #NFT市场回暖 #加密货币社区 #币圈新机遇