Recently, a fan asked me a question: He said that he had been in the cryptocurrency circle for more than three years and two months, with a capital of 100,000 yuan. He had experienced a bear market and this bull market. Why is he still spinning in circles, not making money, and even starting to lose money? His current position is only more than 80,000 yuan.
When I heard the time when he entered the circle, I already understood why he didn't make money or even lost money.
More than three years ago, it happened to be the first year of the bull market, which was the beginning of 2021.
In order to verify my thoughts, I asked him three questions.
1. When you first entered the circle, did you buy small positions first and then large positions in the process of making money?
2. Did you basically only buy and rarely sell? Or did you constantly change positions and increase positions based on market sentiment and news?
3. When you saw that the sentiment was very bad last year and the end of the year before last, did you cut your losses after the sharp drop, and then buy back after seeing the market continue to rise?
Unsurprisingly, basically all three of these were true.
In fact, his situation is basically the same as that of many retail investors.
Taking this round as an example, there are three big bargain hunting opportunities in total. No matter which one, as long as you seize it, you will basically at least double your position. According to the increase in the price of the pie, it should also be achieved.
However, the real bargain hunting tests everyone's emotions and the ability to control positions. Few people can do it. I am one of them who can do it.
In this circle, many people lose money, accounting for 80%. These people have the following common conditions:
1. They have no concept of the cycle.
2. They have no management of positions.
3. They have no control over their emotions.
The above three points will cause bull market chasing, bear market killing, rising FOMO, and falling.
In the bear market, I played in advance. When entering this circle:
First, you must prepare for a 50% retracement of the principal, so you cannot borrow money or take key funds to gamble, because "important funds" determine how big the pattern is.
Secondly, you must look at the cycle accurately. It is best to plummet. After a period of decline, find the bottom of the box and arrange in batches to pull to a relatively bottom price, and then ensure good emotions and less operations.
The most important thing is that the conservative exit strategy is to use the currency standard, double the price and sell out half, then for every 50% increase, sell out 10%. You can reap the dividends of the entire bull market without getting hurt.
When to buy is crucial. This is relatively simple, but it seems to be a bit difficult for most people, because they missed the opportunity and were not patient enough to wait.
Most people lose money in the bull market for this reason.
For cryptocurrency trading, most of the time should be spent waiting, waiting to buy, waiting to sell, and the operation time should not be even one percent.
Those who can do this will of course be hurt in the retracement last month (human nature), but in the long run, they must have accumulated enough wealth.
In the absence of desire, getting results often means seeking but not getting, and not seeking but getting. Do what you should do
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