Author: BTC_Chopsticks
Compiled by: Deep Tide TechFlow
In a bull market, people often feel greed due to the rapid rise of the market and want to catch the 'last surge'. However, once the market reverses, this impulse can often lead you to lose the profits you have already gained.
How to avoid these risks? Here are 10 common mistakes we've summarized, along with corresponding solutions.
1. FOMO without a plan
When a hot project suddenly becomes popular, many may impulsively buy due to fear of missing out (FOMO). However, after prices reach a peak, the hype often fades quickly, leading to losses for investors.
How to avoid:
Before you start investing, make sure you have a clear investment logic and goals.
Do not blindly follow market sentiment; avoid impulsive trading.
2. Ignoring risk management
Overconfidence is a major taboo in investing; it can lead you to make reckless decisions like investing all your funds, using high leverage, or only investing in high-risk assets. These behaviors put your investment portfolio at great risk.
How to avoid:
Diversify your investments reasonably, allocating part of your funds to stablecoins or low-risk assets to balance overall risk.
Set stop-loss orders (i.e., automatically selling when the asset price drops to a certain level) to reduce potential losses.
3. Lack of patience, exiting too early
Some investors choose to sell before a project has fully realized its potential, resulting in missed opportunities for greater returns. This lack of patience often stems from excessive focus on short-term market fluctuations.
How to avoid:
Trust your research and do not easily change your plans due to short-term fluctuations.
Reduce the time spent frequently checking market conditions, and give your investments more time to grow.
4. Strategy too complex
Some investors prefer to rely on a large number of technical indicators or complex analytical tools, but these tools may cause you to hesitate, leading to missed opportunities.
How to avoid:
Simplify your investment strategy, focusing on a few key indicators, such as market trends and fundamental analysis.
Maintain clarity and decisiveness in your decision-making, and do not be distracted by excessive information.
5. Overtrading erodes profits
Frequent trading not only incurs high transaction fees but can also increase the likelihood of investment mistakes due to emotional decision-making.
How to avoid:
Reduce the number of trades and focus on investment opportunities you truly believe in.
Allow your investments to grow naturally; do not over-intervene and avoid frequent operations due to short-term fluctuations.
6. Selling high-performing cryptocurrencies to chase 'potential' coins
Many investors make a common mistake in a bull market: selling strong-performing cryptocurrencies and instead investing in speculative 'hidden gems', hoping to find the next opportunity for a surge. However, this behavior often leads to reduced earnings or even losses.
How to avoid:
For high-performing investments, hold patiently and allow them to continue growing.
Do not easily give up on projects that have already proven their value to chase unverified new opportunities.
7. Blind confidence in a bull market
In a bull market, the general rise in the market can easily lead people to mistakenly believe that their success comes entirely from their abilities, ignoring the element of luck. This overconfidence may lead you to make high-risk decisions, such as over-investing or increasing leverage, thereby increasing the risk of losses.
How to avoid:
Stay humble and recognize the unpredictability of the market; do not be overly confident.
Control the position size of your investments, avoiding putting too much money into any one project to lower risk.
8. Over-diversifying investments
Trying to seize every opportunity may lead to an overly diversified portfolio, resulting in insufficient focus and diluted returns. Instead of pursuing quantity, focus on a few truly trustworthy projects.
How to avoid:
Focus your attention on 2-3 projects that you have researched thoroughly and truly believe in.
Remember, quality is more important than quantity— a focused investment strategy is often easier to succeed.
9. Chasing the dream of '100x surges'
Many people become obsessed with finding the next project that can deliver '100x returns' during a bull market, but these projects often lack fundamental support and may ultimately lead to losses.
How to avoid:
Prioritize projects with strong fundamentals (such as technological strength and team background) and real application scenarios.
View the market rationally and do not be deceived by the illusion of high profits. Holding quality assets for the long term is often key to achieving high returns.
10. Final advice
Succeeding during altcoin seasons is not just about seizing market upswings; it is also crucial to avoid mistakes that could lead to significant losses.
Regardless of market fluctuations, maintaining discipline and executing a clear strategy is the key to success. Focus on your goals and make every investment decision carefully. Good luck!
