In the cryptocurrency circle, filled with opportunities and risks, I experienced a three-year investment nightmare. From an initial capital of 1 million to only 70,000 left, it has been a journey full of lessons. Today, I will review my trading records with you.
His mistakes:
Out of control capital management: I did not divide my funds into smaller portions for investment, but instead invested a large amount every time. Each loss greatly weakened my morale, ultimately leading to irreversible losses. If I had followed the strategy of dividing my funds into five parts and only investing one-fifth each time, perhaps I would have had a chance to recover.
Counter-trend trading: I often frequently bottomed out in a downtrend instead of trading with the trend. The market repeatedly proved the wisdom of 'trend-following' trading. I missed those 'golden pits' in an uptrend and instead got stuck in losses during downtrends.
Chasing short-term surging coins: I was always attracted to coins that surged in the short term, ignoring the basic principle of not touching coins that had rapidly surged. The result was that these coins, after stagnating at high levels, inevitably led to declines.
Ignoring technical indicators: I rarely used technical indicators like MACD to assist in judging trade points. If I had noticed the golden cross below the zero line and the death cross above the zero line in MACD, I might have been able to enter and exit the market more effectively.
Blindly averaging down: When I was in loss, I chose to average down instead of adding to my position when I was in profit, resulting in increasing losses. I realized too late that one should never average down while in loss.
Ignoring trading volume: I did not realize that trading volume is the soul of the market, and I missed many opportunities, especially during low-level breakout volume.
Choosing the wrong trend: I often tried to find opportunities in a downtrend instead of focusing only on coins in an uptrend. If I could have followed the trend judgments of the 3-day line, 30-day line, 84-day line, and 120-day line, I might have avoided significant losses.
Lack of review: I did not regularly review my trading strategies, leading to a sluggish response to market changes. Insisting on reviewing each session and adjusting strategies is an important lesson I learned later, but it was too late.
Conclusion:
Through these three years of experience, I have learned a lot about trading strategies and deeply felt the ruthlessness and cruelty of the market. I hope my story can make you more cautious and less blind in trading. Remember, every trade is a lesson; the key is how we learn and grow from it.
In the cryptocurrency circle, opportunities and risks coexist. May my lessons serve as a beacon on your journey, guiding you towards a more rational and successful investment path.
Disclaimer: This article is a personal experience sharing and does not constitute investment advice. Investment involves risks, and one must be cautious when entering the market.
