In the cryptocurrency world, there is a common phenomenon of the "80/20 rule", that is, 80% of the time may be dull, and the real profit opportunity only appears in 20% of the time.

Since we cannot predict when those violent fluctuations will come, you must make sure you are always present. This means that your position management cannot be to wait for the rise with an empty position and then chase the high with a full position, which is not common. The ideal state is to maintain a heavier position when it rises and a lighter position when it falls.

However, most people do the opposite. They adopt an inverted pyramid strategy of increasing their positions. In other words, as the price of the currency rises, their positions also increase. At the bottom of the currency price, the position is light. As the price of the currency continues to rise, greed intensifies, and they begin to increase their investment. Once the market reverses, they will suffer heavy losses.

This is no different from gambling. You place small bets when you are profitable and continue to make small profits, but once you place a big bet and the market falls, all previous profits may be wiped out. Investing in accordance with human nature may make you feel happy, but it is often difficult to achieve real profits. There is a saying that has been mentioned repeatedly: Be greedy when others are fearful, and be fearful when others are greedy. At the high point of the market, when others are scrambling, you should give them the chips, and pick them up again at the low point of the market.

This anti-human investment method may make you feel uncomfortable, but you must understand that it is always a minority who make profits. Most people follow human nature, and you can only succeed in the market by going against human nature.

Greed often comes from the hope of making up for previous losses through the rise of a coin, so the more it rises, the less willing you are to sell it. This is an extremely wrong way of thinking, a typical gambler's mentality. Eat the middle part of the fish, the head and tail are not delicious, you need to learn to discard them at the right time.