Recently, I've encountered many spot traders who are suffering losses, and I've had simple communications with these people.
In the end, most people actually end up with one result: being scammed.
Why do I say people are being scammed? Because there are too many voices in the market saying—holding assets should be done mindlessly.
Is holding assets mindlessly the way to go? Nonsense!!!
This is what I see the most on online platforms and in some groups, where they advocate for mindlessly holding assets. After being in this circle for so many years, I remember vividly that many influential figures emerged at the end of 2021, whether in spot trading or contracts.
Having no basic concept of bull and bear cycles in the market just leads to mindlessly holding onto assets, waiting for various black swan events to occur, and then those people disappear, leaving behind a mess of retail investors. Now, encountering those who shout to hold assets mindlessly, I despise these people the most, saying things like 'as long as you don't cut losses, the market maker can't cut you' and 'if you hold through a bear market to the peak of a bull market, you can make money'—there are many such sayings.
First of all, most people lack a concept of bull and bear markets. Most retail investors chase after rises and sell on dips, and they won't sell high and buy low. Therefore, very few people manage to buy at the bottom of a bear market and sell at the top of a bull market; most end up buying at the bottom and cutting losses there.
Those who say to hold assets mindlessly don't understand the transition of bull and bear cycles, or they only look at charts below the daily line. Please stop coming out to harm others. If you can't play the small cycles, then play quietly by yourself and don't express your opinions, as it will harm most people. Because no matter the platform, once your follower count rises, even if you make a silly comment, people will believe it and follow your actions. At that point, those who follow you will only find themselves in a dead end.
Why is it not recommended to mindlessly hold assets in spot trading?
The market has cycles. If you can really catch the big bottom, then holding for the long term isn’t a problem. The key issue is that many retail investors can't catch the lowest point and often chase after rises and sell on dips. Therefore, we must pay attention to the cyclical peaks of the market. For instance, when this wave of the market was around 70,000, I personally anticipated a pullback. When I warned of the risks, many people criticized me, saying I was wrong to be bearish.
I find it very frustrating that these people lack even the most basic defensive awareness. Even in spot trading, there should be a risk awareness.
That's why so many people have been cut in half. You might say that the market will go up again, and as long as you hold, there’s no problem. However, there’s an issue: many retail investors have small capital. If small capital wants to maximize its utilization, it must avoid major downturns to accumulate quickly, rather than being trapped for months or even years.
How should small capital in spot trading profit?
Periodic operations do not require mindlessly holding assets all the time, nor do they require making short-term trades. Regarding how to play spot trading, I have previously mentioned not to elaborate too much.
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In summary, holding assets long-term in spot trading must have a certain strategy; good strategies lead to good returns, allowing small capital to gain significant profits in long-term trading.