Why do veterans in the cryptocurrency circle always stay in the same place or even lose money?
A fan friend has been in the cryptocurrency circle for more than three years. He has a principal of 100,000 yuan and has seen both bull and bear markets, but his money has not increased, and now it is even less. Why? I guess that he entered the circle at the wrong time. He entered the bull market at the beginning of 2021.
I listed three questions for him, and he was caught in all of them:
1. Do you feel itchy when you make money and buy more and more?
2. Do you always can't help buying and buying, and rarely sell? And always follow the market sentiment?
3. Cut your losses when the bear market falls sharply, and then buy back in a hurry when you see the rise?
Many retail investors have these problems. Let's talk about this round of bull market. There are several opportunities to buy at the bottom. If you catch one, you can double your money. But the key is to control your emotions and positions, and most people can't do these two things.
In the cryptocurrency circle, 80% of people lose money. Why? Because:
1. Don't understand the market cycle, like a blind man touching an elephant.
2. Position management is messy and there is no plan.
3. Poor emotional control, excited when the price rises, and collapsed when the price falls.
What is the result? Chasing high in the bull market and selling meat in the bear market is a typical "leek" behavior.
As for me, I was mentally prepared before entering the circle. I was not afraid of losing half of it because I used my spare money. Both investment mentality and strategy are very important.
See the market cycle clearly, find the right time to buy in batches, and don't move around all the time. There are also rules for selling. Sell half when it doubles, and sell again when it rises again. This is stable.
But many people just can't wait, miss good opportunities and are anxious, and end up losing money in the bull market.
In the currency circle, patience is more important than anything else. Most of the time you have to wait, wait for opportunities, and wait for opportunities. When you really operate, you should do less.
Those who can do these will definitely make a lot of money in the long run even if there are short-term fluctuations. Remember, don't be greedy, stick to your own strategy, and time will give you the answer.
