In the current bull market, why do many people lose money? This can be mainly attributed to the following reasons:
1. When the market falls, due to fear of further losses, people often dare not build positions in batches to buy at the bottom, thus missing the opportunity to accumulate chips at a lower cost.
2. Even if you muster up the courage to buy at the bottom, you may not be able to hold on until the bull market truly unfolds. You are often scared out when the market has a slight correction or the banker is cleaning up the market, and you will not be able to hold on to the subsequent sharp rise.
3. The chips are too dispersed, resulting in that in a bull market, even if some investments perform well, the overall returns are diluted by other investments that perform mediocre or poorly.
4. Frequent buying and selling, constant position changes, blindly chasing ups and downs, etc., not only increase transaction costs, but also easily fall into the trap of emotional decision-making, and ultimately miss the continued rise of the bull market.
5. Go all-in or hold a large position out of greed without doing a good job of risk diversification and position control. Once the market pulls back, even a small adjustment may lead to serious losses, or even forced to sell at a loss.
6. Lack of keen insight into market changes. People are afraid to enter the market when it plummets, and only realize that the bull market has returned when the market has risen significantly. At this time, the cost of intervention is often high. When the market soars, they hold heavy positions to chase the rise, and eventually they are either trapped or leave the market at a loss.
Market Analysis
Good afternoon, brothers. Yesterday, the market fell back. I told everyone to play the long game and make sure to hold on. Now BTC has stabilized at 65,000! According to the on-chain data, more than 15,000 BTC flowed out of the exchange in 3 days from September 24 to today, September 27. Yesterday, the stablecoins in the exchange began to rebound. In the past 3 days, a whale withdrew 3,501 BTC (about 221.39 million US dollars) from Binance. This whale made money 3 times. After each large accumulation, the price of Bitcoin rose sharply.
There were obvious signs of whales buying the bottom in September. There was a wallet that increased its holdings of BTC from 2,625 on September 6 to 23,732 on September 20, an increase of $1.4 billion worth of BTC. This is terrifying. It may be that the world's top billionaires such as Li Ka-shing or Bill Gates have joined the game.
At the beginning of September, many friends said that according to historical statistics, September will always see a drop. Most analysts on Twitter
The Binance Square is shorting frequently, saying that it will fall to 40,000. We are the only ones who advise everyone to hold on and not sell at the bottom. Now we finally see the results. In fact, investment analysis is not nonsense, nor can it be affected by emotions. It is necessary to make a well-founded judgment based on the Fed’s policies and on-chain data.
At 8:30 p.m., PCE data will be released. This is one of the Fed's preferred inflation indicators. If it is lower than expected, then BTC will accelerate to 70,000. If it is higher than expected, it will face a short-term correction. In any case, we still have to play the long game. We are in the early stages of a global waterproof cycle. Today, A-shares have skyrocketed. Only by holding the currency patiently can we get big results and avoid selling at a high price.
Key points that are easily overlooked when buying at the bottom
1. Fund allocation strategy:
Don’t invest all your money at once to buy at the bottom. It is recommended to buy in batches, divide the funds into several parts, and gradually increase holdings at different price levels to reduce the average cost.
Reasonably control the proportion of funds used for bargain hunting and avoid over-investment to reduce the significant losses caused by market fluctuations. Develop a suitable fund allocation plan based on your own risk tolerance and investment goals.
2. Set stop loss and take profit:
When buying at the bottom, be sure to set a stop loss to limit potential losses. If the price drops to the stop loss level, sell decisively to prevent further losses.
At the same time, set a reasonable stop-profit position. When the price rises to the stop-profit position, consider selling part or all of it to lock in profits. The setting of the stop-profit position should be adjusted appropriately according to market dynamics and personal investment goals.
Before making any investment decision, it is important to fully understand the characteristics and risks of the cryptocurrency market. It is recommended to consult a professional investment advisor and act prudently according to your own risk tolerance and investment goals.
