The bull run in the altcoin market is always full of temptations and risks. When prices soar, many investors are prone to emotional decisions, which leads to losses.
In the early morning of December 20, the market's reaction to the Fed's "hawkish" decision to delay rate cuts the day before expanded, and the crypto market continued to fall. Bitcoin fell to below 96,000 USDT, and Ethereum fell from a high of 3,900 USDT in the early morning of the 19th to 3,322 USDT. The violent fluctuations caused the 24-hour contract liquidation volume of the entire network to exceed US$1 billion, and the decline of altcoins was generally more tragic.
What strategy is suitable for the current copycat market?
Not setting clear profit targets
When the market is rising, it is easy to indulge in the fantasy of "just a little more", and ultimately lose the realized gains when the market reverses.
How to avoid:
Set clear profit targets for each investment.
Gradually stop profit in stages and lock the profits into real funds.
Following the hype without a plan
The allure of hot projects is hard to resist, but chasing high prices often leads to losses when the heat fades.
How to avoid:
Have a clear reason to invest before entering the market.
Avoid impulsive trading driven by FOMO (fear of missing out).
Ignoring risk management
In a bull market, investors tend to be overconfident, investing in full positions or using leverage, or even holding a single high-risk asset, which can lead to devastating losses.
How to avoid:
Diversify your investment portfolio and move some of your funds into low-risk assets such as stablecoins.
Set a stop loss to reduce the potential risk of a single investment.
Trading strategies are too complex
Too many technical indicators and analysis may lead to hesitant decision-making and missed opportunities.
How to avoid
Simplify your trading strategy and rely on only a few key signals.
Keep your operations clear and don't hesitate by over-analyzing.
Overtrading causes gains to evaporate
Frequent trading not only increases transaction fees, but also easily leads to emotional decision-making, resulting in more errors.
How to avoid:
Reduce your trading frequency and focus on a small number of high-conviction trading opportunities.
Let the investment grow on its own and don't rush to make profits every day.
Abandoning investments that have performed well
Selling strong performing tokens for so-called “potential stocks” is often not worth the effort. Winners win because they are persistent.
How to avoid:
Let your winners continue to grow and don't abandon current successful investments in search of new opportunities.
Overconfidence leads to increased risk
When the market is rising overall, investors tend to mistakenly believe that they have mastered the rules of the market, and thus take on greater risks.
How to avoid:
Stay humble and respect the uncertainty of the market.
Always control your positions and avoid exposing yourself to too much risk due to overconfidence.
Excessive diversification of investments
Trying to capture every opportunity can lead to a portfolio that is too diluted and makes it difficult to focus on maximizing returns.
How to avoid:
Focus on 2-3 projects that you truly understand and believe in.
Focus on high-quality investments, "less is more".
Profiting in a bull market requires not only seizing opportunities, but also avoiding risks. By clarifying goals, making plans, managing risks, and staying calm, you can avoid making fatal mistakes in this altcoin season, maximize your gains, and maintain success in the long run.
The altcoin market is full of temptations, but discipline and strategy are the keys to success.
