Cryptocurrency Pitfall Guide Summary, which ones have you fallen into?
1. Impulsive Enthusiasm
Seeing a coin you like, even though it’s not the right time to buy, you can’t help but want to chase the price. As a result, you only focus on that coin and miss out on other better opportunities.
2. Value Investment Trap
When doing value investment, you only look at the price; if it rises, you think it's great, but when the price falls, you look for various fundamental positives to support it. Ignoring that the coin price is at the end of a major cycle's upward momentum exhaustion, leading to deeper losses.
3. Emotionally Out of Control After Being Stuck
If the trade gets stuck, once emotions kick in, you become a staunch bull, unable to hear any bearish voices. Rational judgment disappears, and you only want to listen to bullish analyses.
4. Refusing to Admit Mistakes
Clearly made the wrong judgment, should have cut losses and exited, but because you only allow yourself to profit and not to lose, you end up losing more, turning a short position into a long one.
5. Past Hurts
A coin has hurt you before, and you don’t want to touch it again. Even when better opportunities arise, you turn a blind eye.
6. Regret of Missing Out
Seeing a coin that short-term skyrocketed makes you feel there’s still a lot of upward potential; even if chasing it back only increases your cost by two points. But you refuse to chase it, resulting in missed opportunities.
7. Frequent Trading
Wanting to buy coins every day, even if there’s no opportunity, just to buy randomly, exhausting the last penny in your account. As a result, your account is always fully loaded, and the risk significantly increases.
8. Lack of Patience
Can’t hold onto coins, can’t bear not to make a move in the short term. Frequent operations lead to always losing more than earning.
9. Rigid Thinking
Sticking to a certain model for too long and losing for too long, yet still unwilling to change your mindset. The result? Continuing to lose money.
10. Gambler's Mentality
After consecutive losses, you become desperate, unwilling to believe that you can’t win at least once. Then you continue to increase your bets, resulting in greater losses.
11. Dilemma of Profit Taking
Made a 15% profit, but short-term shows signs of upward exhaustion, yet you insist on waiting for a 20% profit to take gains. The result? Missing the best exit opportunity.
12. Averaging Down Trap
With a 10% loss on a position, but unable to understand the structural trend and unwilling to cut losses, insisting on averaging down. The result? End up heavily invested and trapped until it’s too late.
Trading coins cannot be rigid; if the direction is wrong, adjust and readjust. If it's right, make judgments based on the situation, run when you should, and hold when you should. Don’t make these mistakes again.