After buying coins, I sell them as soon as they go up a little bit, fearing a pullback. I would lose that little bit of profit and wouldn’t be able to hold on to the coins at all.
After buying the currency, the price fell, but you held on to it and refused to sell it, thinking that the price would go back up. You made a wrong decision and did not correct it, and just watched the price fall.
These situations have continued since I entered the cryptocurrency circle. It has been slightly better in the past year, but it still happens from time to time.
These situations result in us only making small profits when we earn money, but losing money is a big loss.
I believe many of my friends have encountered these situations. So what should we do to reverse the situation and make sure we only lose a small amount of money when we lose and make a lot of money when we make money?
The following methods are just my personal superficial understanding, and I am also practicing them. I think they make sense after reading them.
Just take it as a reference, and forget it if you don't agree.
The method is to learn, constantly improve cognition, constantly explore investment methods to make money, and form your own investment and money-making theory system. The most important thing in this process is statistics, statistics of our investment strategy model, that is, the way we invest and buy and sell, why do we buy? Why do we sell? What is their winning rate? If we operate according to the strategy, after 100 consecutive operations, can we have enough profit space?
Confidence is very important for investment. If we don’t have confidence, no matter how good the currency is, we will be washed out with a slight shock. After doing data statistics and having data as support, we have strong confidence to make decisions. We will keep doing what makes money until it stops making money, then abandon it, explore new investment strategies to make money, and decisively give up what doesn’t make money.
With statistical data, we will not be hesitant or timid when making investment decisions. When we invest and buy and sell, we will know clearly when to sell when we make money and when to stop loss when we lose money.
Without data statistics and a good investment strategy model, we will not have strong enough confidence.
By constantly doing statistics and building our own investment strategy model, we will gradually go from losing money to making money, first making small money and then making big money. This process is slow and painful, and it takes us many years to do it, but as long as we get through the initial stage and initially establish the investment strategy model, it will be relatively easy to gradually improve it later. Once the investment strategy model is established, making money will be simple.
But nothing is eternal. Just because the current investment strategy model is profitable doesn’t mean it will always be profitable. This requires us to keep observing the market and constantly update our investment strategy model.
In our investment process, there will always be one or two times when we make money by luck. This requires us to have a clear understanding and know clearly that this money is earned by luck, not our ability.
The above is all I have to share today. I hope it will be useful to you and have some reference value.
