Guide to Avoiding Pitfalls in the Crypto World: What Have You Experienced?
1. Impulsive Buying
Seeing a desirable coin, clearly not the right time to buy, but unable to resist chasing it at a high price. As a result, you focus only on that coin and miss out on better opportunities.
2. Value Investment Trap
When doing value investing, you only look at the price. If it rises, you think it's great, but when the price drops, you search for various fundamental positives to support it. Ignoring that the coin's price is at the end of a major cycle with diminishing upward momentum, leading to deeper losses.
3. Emotional Loss of Control After Being Stuck
When trapped in a trade, emotions take over, and you become a staunch bull, unable to hear any bearish opinions. Rational judgment disappears, and you only want to listen to bullish analyses.
4. Not Acknowledging Mistakes
Clearly judged incorrectly and should have cut losses, but because you only allow yourself to profit and not to incur losses, you end up losing more, turning a short-term position into a long-term one.
5. Past Hurts
A coin once harmed you, and you no longer want to touch it. Even when a great opportunity arises, you turn a blind eye.
6. Regret of Selling Too Early
Seeing a coin that you sold short-term soar, feeling there’s still much room for growth, even if you buy back at a slight increase in cost. But you refuse to chase it, resulting in a missed opportunity.
7. Frequent Trading
Wanting to buy coins every day, even without a buying signal, just to buy randomly, exhausting the last penny in your account. As a result, the account is always fully invested, increasing risk.
8. Lack of Patience
Unable to hold onto coins, you can’t stand not making a move for even a short time. Frequent trading results in more losses than gains.
9. Rigid Thinking
Sticking to a certain pattern for too long, losing money for a long time, yet unwilling to change your mindset. As a result, you continue to lose money.
10. Gambler's Fallacy
After consecutive losses, you become desperate, convinced that you must win at least once. Then you continue to increase your bets, resulting in greater losses.
11. Dilemma of Profit-Taking Points
Making a 15% profit, short-term signs indicate a slowing increase, but you insist on waiting for a 20% profit to take profits. As a result, you miss the best exit opportunity.
12. Averaging Down Trap
Being down 5% on a 10% position, but unable to understand the structural trend, you refuse to cut losses and insist on averaging down. As a result, you end up heavily invested and trapped, until there's no way back.
In crypto trading, don't be rigid. If you're heading in the wrong direction, adjust accordingly; if you're right, make judgments based on the situation. Know when to run and when to hold. Don't repeat these mistakes.