🚫 Avoiding the Foolish Dream:
New traders often aspire to buy at the lowest point and sell at the highest, aiming for maximum profits with full leverage. However, this approach can be challenging and often leads to disappointment.
📈 Unpredictability of Market Movements:
Cryptocurrency prices are inherently unpredictable, making it challenging to pinpoint exact highs and lows. Even if a predicted target is reached, the actual market movement may vary within a range.
📊 The Fish Theory:
"Never think about selling at the highest point and buying at the lowest point. This is a foolish dream. I adhere to the [eating fish theory]. Eat only the fish body, don't eat the head and tail."
🐟 Understanding the Fish Theory:
Focus on capturing the substantial part of a market movement (the fish body) rather than attempting to catch the exact top or bottom.
Avoid the extremes (head and tail) that may lead to overtrading, liquidation risks, and missed opportunities.
🤔 Practical Advice for Traders:
Embrace a realistic approach by aiming for significant price movements rather than perfection.
Use risk management strategies to protect against potential losses and liquidation.
Stay informed about market trends, news, and technical analysis to make informed decisions.
💡 Conclusion:
The Fish Theory encourages traders to prioritize realistic goals and avoid the pitfalls of chasing elusive extremes. By focusing on capturing substantial market movements, traders can adopt a more practical and sustainable trading approach.