Is it more profitable to do short-term or long-term trading?
In the cryptocurrency circle, people who over-speculate often fail, while those who only seek ordinary returns may become rich.
There are generally two ways for leeks to speculate in cryptocurrencies:
Short-term operation: use more funds to operate active coins, use stop-loss orders to protect principal and predict the trend of currency price fluctuations.
If the prediction is right, wait and see and wait for the opportunity to sell.
If it is wrong, sell at the stop-loss point.
However, when this method encounters a sudden waterfall or a decline and misses the stop-loss point, the mentality will cause them to choose to cut their losses after being trapped, and they may repeatedly operate after the market rebounds and cause losses.
At the same time, it is also necessary to judge whether to stop loss based on different periodic trends (such as weekly and monthly lines). If the judgment is not scientific, it may lead to wrong operations.
So what is value investment:
We need to consider the general direction of the currency operation, the relationship between the price and value of the currency, and have confidence in the value of the currency in the next few months.
Correct value investment should be built in batches, and not be confused by short-term gains.
Short-term and long-term investors have different perspectives and ways of thinking, and short-term investors are easily affected by the market.
Emotional instability; long-term investors only need to enter the market at the relative bottom of the bull market to arrange potential coins and then patiently wait for the bull market to peak and cash out.
Retail investors in the market are influenced by the main force to form a leek mentality. When you are greedy and want to make more money in the short term, you should consider your own ability.
The financial market follows the 80/20 rule. Investors who want to change their fate need to think about how to become the 20%.
In a bull market, there are more longs than shorts, and in a bear market, there are more shorts than longs. Generally, there will be no losses.
It is normal to be trapped in currency speculation, and being trapped does not mean being harvested. In the currency circle, people are often reluctant to retreat, but it is necessary to retreat at the right time and accept the cycle of gains and losses.
Whether it is short-term or long-term investment, defense (building positions in batches) is more important than offense.
