The four most taboo things in cryptocurrency trading! If you choose two of them, you will be cheated!
1. Heavy positions in unpopular altcoins:
Blindly invest a large amount of money in unpopular and risky altcoins, hoping that they can make you rich overnight. However, these currencies often lack a stable foundation and liquidity, and once the market fluctuates, the losses will be difficult to recover.
2. Floating loss and adding positions:
Continuously adding positions when losing money, hoping to recover losses by increasing positions, but often falling into a vicious cycle of losing more and more. This is a common mistake made by many investors and an important reason for capital loss.
3. Technical indicators:
Over-reliance on technical indicators for trading decisions ignores the fundamentals and actual trends of the market. Although technical indicators can provide a certain reference, they are not omnipotent. Excessive superstition may cause investors to miss real investment opportunities.
4. Frequent trading:
Frequent trading, pursuing short-term profits, and ignoring long-term investment value and strategy. Frequent trading not only increases transaction costs, but may also affect investors' mentality and judgment, and ultimately lead to investment failure.
