Reasons for Losses
1. Selling rising coins while holding onto losing ones: Many people rush to cash out as soon as they see a small profit, which prevents them from making significant money in the long run. Conversely, they can hold onto losing investments for a long time. However, there is an unwritten rule in the cryptocurrency world: the coins that rise the most tend to continue rising, while those that fall the hardest often plummet even further. It's like a pond; if there is little inflow and a lot of outflow, over time, even the largest pond will dry up.
2. Can't control trading impulses and always go all-in: Many people do not give themselves time to breathe; even if they just made a profit, they immediately invest in another coin. They firmly believe that with enough effort, they can amass endless wealth. However, the cryptocurrency market is different from others; wanting to win every time is clearly unrealistic. Timing is crucial; if you can seize one big opportunity, you won't have to worry about making money. Frequent trading in a poor market environment will only lead to losses. Going all-in is especially dangerous. It is only in a major market downturn that one realizes how fortunate it is not to be fully invested.
3. Impulsive trading, always chasing highs and cutting losses: It is difficult for human nature not to be influenced by market emotions. When seeing other coins rise, it feels like missing out on a fortune. When faced with a decline, there is always a desire to bottom-fish and pick up bargains, but this mindset often results in buying at the peak or midway down. Maintaining rationality is key.