Looking back, it makes sense; why does BTC keep hitting new highs? Let's list the mistakes made by retail investors.
1. No research, following the trend and buying blindly.
2. When the amount of funds is small, holding too many positions.
3. After incurring losses, not understanding the situation deeply and failing to stop losses in time.
4. After incurring floating losses, choosing to lie flat without continuous follow-up, feedback, and optimization of holding strategy.
In fact, as long as we continue to track - feedback - optimize, and continue to research and learn, it is possible to reduce losses and expand profits. A clear pattern is that when Bitcoin slightly declines (2-3%), altcoins generally plummet, and when Bitcoin slightly rises (3-5%), altcoins generally surge.
One thing that many beginners may forget is that at the same price level, after a drop, it needs to rise more to come back. For example, if you buy at 10 and it drops 50% to 5, it needs to rise 100% to break even.
The reasons for missing out can be summed up in four common problems.
First of all, we are always lazy and fear trouble.
Even when seeing Bitcoin prices continually hitting new highs, we are reluctant to actively understand. We hold a mindset of potential crashes at any moment, waiting to see the spectacle. The root of this mentality lies in our not having a strong desire for money, causing us to miss many opportunities. Additionally, we have an inherent resistance to new things. We always prefer familiar things and instinctively resist the unfamiliar. However, if we can combine the unfamiliar with the known, turning it into something we are familiar with, we can more easily accept new things. Nevertheless, most people blindly criticize and mock Bitcoin without understanding it, thinking it is a bubble. This approach undoubtedly causes us to miss wealth opportunities. Only when we fully understand and recognize the value and potential opportunities of new things can we make informed decisions.
In addition, there is the spirit of adventure, or the gambler's mentality.
Even if we fully recognize the investment value of Bitcoin, we still fear failure and are reluctant to invest too much money. This mentality limits our investment scale and potential returns.
We tend to listen to others' opinions instead of conducting our own in-depth research on new things. This behavior not only causes us to miss wealth opportunities but also limits our personal growth and development.
If we cannot overcome these issues, even if another opportunity for wealth arises, we are likely to miss it.
The secret to a 10x return: efficient methods for trading cryptocurrencies that can easily double your investment!
Master low-priced chips, invest steadily, and do not be influenced by market noise. When investing in the cryptocurrency market, one must first realize that low-priced chips are hard to come by and should never be easily taken away by market fluctuations. Hold firm beliefs, stay calm, and prevent yourself from being disrupted by strategies like market manipulation or price dumping. Chasing highs and selling lows, as well as going all-in, are often major investment taboos. If the overall market trend is favorable, gradually building positions during a downturn can more effectively control risks, reduce costs, and increase profit margins compared to chasing highs. The key lies in reasonably distributing returns, maximizing the vitality of funds, rather than blindly increasing positions. When the market rapidly rises, lock in some profits in a timely manner and seek to win steadily; when the market plummets, do not rashly withdraw funds, keep your main positions intact, and stabilize your mindset. Avoid speculation, do not be greedy for quick gains, do not fear market fluctuations, and always maintain a steady mindset to avoid operational errors. Early low-price layouts or private placements of low-priced coins stem from an estimation of market experience and future potential, while the game in the secondary market relies more on technical and information analysis. Reasonably distinguish between different stages to ensure that every step has clear logic and direction.
Building positions and unloading:
Building positions and unloading: step by step, controlling risks and returns.
Investing in cryptocurrency is a complete process from building positions to unloading, where layered and segmented operations are particularly crucial. Gradually widening price levels can effectively control risk and profit ratios, creating a more flexible operational space. Investors also need to be familiar with the interconnected effects and observe the trends of multiple cryptocurrencies. Each cryptocurrency's performance in the market is interrelated; they may seem independent at first glance, but they actually influence each other.
The positions of value coins balance investment risks and profit returns; being overly conservative may lead to missed opportunities, while being overly aggressive may face high risks. Value coins are more stable, while hot coins fluctuate wildly, making appropriate allocation crucial.
Balance mindset: fund management and risk prevention: balance mindset.
In cryptocurrency investment, maintaining account liquidity, that is, 'having coins in the market, money in the account, and cash in the pocket', is an important safeguard against market uncertainty. Never go all-in; reasonably allocate funds and master risk control methods. This not only stabilizes the investment mindset but also effectively controls risks. Using spare money for investment rather than borrowed capital is the foundation of investment. Master basic operational skills and thought processes, cultivate the habit of recording and summarizing, and treat the highs and lows of each operation as valuable experience to gradually develop the ability to filter information and make decisions. The market is currently turbulent, and walking alone can be lonely; follow my updates for daily spot potential layouts and bull market strategy layouts.
