What is the root cause of losses in cryptocurrency trading?
For example, you have 1 million and use 700,000 to buy a coin. At first, you don't care about small rises and falls, and you think it can rise back. But as the price of the coin fluctuates greatly, your emotions are also affected: when it rises slightly, you are full of confidence, and when it falls sharply, you comfort yourself that it will eventually rebound.
Then, you start to learn various theories, thinking that the sideways movement of the coin price is "main force absorption" and waiting for a rebound. But a month later, it not only did not rise, but continued to fall. You feel desperate and begin to fantasize about not touching cryptocurrencies after you get your money back.
At this time, your friend tells you that a new coin has soared by 200%. So you give up the original coin and switch to the new coin, fantasizing about making a profit overnight.
In fact, the root cause of losses in cryptocurrency trading lies in emotional fluctuations and irrational decisions. The market is full of uncertainty, and investors need to analyze calmly and stop losses reasonably in order to respond steadily to fluctuations and avoid unnecessary losses.
