Author: BTC_Chopsticks
Compiler: Deep Tide TechFlow
In a bull market, people often feel greed due to the rapid rise of the market and want to catch the "last surge." However, once the market reverses, this impulse often causes you to lose the gains you have already made.
How to avoid these risks? Here are 10 common mistakes we have summarized, along with corresponding solutions.
1. FOMO without a plan
When a hot project suddenly becomes popular, many may impulsively buy in due to fear of missing out (FOMO). However, once the price peaks, the hype often dissipates quickly, leading to losses for investors.
How to avoid:
Before you start investing, ensure you have a clear investment logic and objectives.
Do not blindly follow market sentiment, and avoid impulsive trading.
2. Ignoring risk management
Overconfidence is a major taboo in investing; it may lead you to make reckless decisions, such as betting everything or using high leverage, or only investing in high-risk assets. These behaviors expose your portfolio to significant risks.
How to avoid:
Diversify investments reasonably, allocating some funds to stablecoins or low-risk assets to balance overall risk.
Set stop-loss orders (i.e., automatically sell when the asset price drops to a certain level) to minimize potential losses.
3. Lack of patience, exiting too early
Some investors choose to sell before a project has fully realized its potential, resulting in missed larger gains. This lack of patience often stems from excessive focus on short-term fluctuations in the market.
How to avoid:
Trust your research and do not easily change your plans due to short-term fluctuations.
Reduce the time spent frequently checking the market, giving your investments more time to grow.
4. Strategy too complex
Some investors like to rely on a plethora of technical indicators or complex analytical tools, but these tools can lead to indecision, causing missed opportunities.
How to avoid:
Simplify your investment strategy, focusing on a few key indicators, such as market trends and fundamental analysis.
Maintain clarity and decisiveness in your decisions, and do not be disturbed by excessive information.
5. Overtrading erodes profits
Frequent trading not only incurs high transaction fees but may also increase the likelihood of investment mistakes due to emotional decision-making.
How to avoid:
Reduce the number of trades and focus on investment opportunities that you truly believe in.
Let your investments grow naturally; do not interfere excessively and avoid frequent operations due to short-term fluctuations.
6. Selling strong performing coins to chase "potential" coins
Many investors make a common mistake in a bull market: selling strong performing coins and investing in speculative "hidden gems," hoping to find the next big surge. However, this behavior often leads to reduced returns or even losses.
How to avoid:
For high-performing investments, hold patiently and let them continue to grow.
Do not easily give up on projects that have already proven their value to chase unverified new opportunities.
7. Blindly confident in a bull market
In a bull market, the overall rise of the market can easily lead one to mistakenly believe that their success is entirely due to their abilities, ignoring the role of luck. This overconfidence may lead you to make high-risk decisions, such as over-investing or increasing leverage, thereby increasing the likelihood of losses.
How to avoid:
Stay humble, recognize the unpredictability of the market, and do not be overly confident.
Control the size of your investment positions, avoiding putting too much money into any single project to reduce risk.
8. Over-diversification of investments
Trying to seize every opportunity may overly diversify your portfolio, leading to insufficient focus and diluted returns. Rather than chasing quantity, focus on a few truly trustworthy projects.
How to avoid:
Focus your attention on 2-3 projects that you have thoroughly researched and genuinely believe in.
Remember, quality is more important than quantity—fewer but better investments often succeed more easily.
9. Chasing the dream of "100x surges"
Many people get addicted to finding the next project that can bring "100x returns" in a bull market, but these projects often lack fundamental support, which can ultimately lead to losses.
How to avoid:
Prioritize projects with strong fundamentals (such as technical strength and team background) and real application scenarios.
View the market rationally, and do not be deceived by the illusion of high profits. Holding high-quality assets for the long term is often the key to achieving high returns.
10. Final advice
To succeed in the altcoin season, it is not just about seizing the market's upward opportunities; it is more important to avoid mistakes that could lead to significant losses.
Regardless of market fluctuations, maintaining discipline and executing a clear strategy is the way to victory. Focus on your goals and make every investment decision carefully. Good luck!