Recently, I encountered many spot traders suffering losses, and I had simple communication with these people.
In the end, most people actually end up with one result: being trapped.
Why do I say they were trapped? Because there is too much of one voice in the market—spot should just be held mindlessly.
Is spot just mindless holding? Nonsense!!!
This is what I've seen the most on online platforms and in some groups: holding spot mindlessly. In my years in this circle, I have seen many people trading coins. At the end of 2021, I was most impressed by how many so-called experts appeared, whether in spot or contracts.
Those who have no basic concept of bull and bear cycles in the market just hold on mindlessly. When various black swan events occur, those people disappear, leaving behind a mess of retail investors. Now, encountering those who shout to hold on mindlessly, I really dislike these people. They say things like, 'As long as you don't cut your losses, the market can't cut you,' or 'If you hold spot from the bear market to the top of the bull market, you can make money,' and many other similar things.
First of all, most people have no concept of bull and bear cycles. Most retail investors are chasing highs and selling lows, and do not know how to sell high and buy low. Therefore, the few who manage to buy at the bottom of a bear market and sell at the top of a bull market are very rare. Most buy at the bottom and then cut losses at the bottom.
Those who say to hold spot mindlessly do not understand the conversion of bull and bear cycles or only look below the daily line. Please stop coming out to harm others. If you can’t play short cycles with spot, then keep it to yourself and don’t express your opinions. This will harm most people. Because no matter what platform you're on, as long as your follower count rises, even if you just make a noise, there will be people who believe you and follow your trades. At such times, those who trade with you will only end up on a dead-end road.
Why is it not recommended to hold spot mindlessly?
The market has cycles. If you can really buy at the bottom, then holding for the long term isn't a problem. The key issue is that many retail investors can't buy at the lowest point; they are always chasing highs and selling lows. Therefore, we need to pay attention to the market's periodic peaks. Similar to when this wave was around 70,000, I personally saw a wave of correction. When I reminded people of the risks, many came to criticize me, saying I was wrong for being bearish.
I am speechless. These people have no basic defensive awareness. Even with spot trading, there should be a risk awareness.
So many people have been cut in half. You might say that the market will go up again, as long as you hold on, it will be fine. But there is a problem: many retail investors are small funds. To maximize their utilization, they must avoid significant downward trends to accumulate quickly, rather than being stuck for months or even years.
How should small funds profit from spot trading?
Periodic operations do not require mindlessly holding on all the time, nor do they require short-term trading. Regarding how to play spot, I have mentioned before not to elaborate too much.
Crossing the bull and bear: The simplest and most straightforward way to trade spot in the cryptocurrency circle.
In short, holding spot for the long term must have a certain strategy; a good strategy can lead to good returns, and small funds can achieve large profits in long-term trading.