In a bull market, people often feel greedy due to the rapid rise of the market and want to seize the 'last surge'. However, once the market reverses, this impulse can often cause you to lose the profits you had already gained.
1. FOMO without a plan.
When a popular project suddenly becomes hot, many may impulsively buy in due to fear of missing out (FOMO). However, once prices peak, the hype often fades quickly, leading to losses for investors.
How to avoid:
Before you start investing, ensure you have a clear investment logic and goals.
Do not blindly follow the market sentiment; avoid impulsive trading.
2. Ignoring risk management.
Overconfidence is a major taboo in investing; it can lead you to make reckless decisions such as betting everything, using high leverage, or only investing in high-risk assets. These actions expose your portfolio to significant risks.
How to avoid:
Reasonably diversify your investments by allocating part of your funds to stablecoins or low-risk assets to balance overall risk.
Set stop-loss orders (automatically selling when asset prices drop to a certain level) to reduce potential losses.
3. Lack of patience; exiting too early.
Some investors choose to sell before a project has fully realized its potential, missing out on larger gains. This lack of patience often stems from an excessive focus on short-term market fluctuations.
How to avoid:
Trust the research you have done and do not easily change your plans due to short-term fluctuations.
Reduce the time spent frequently checking market conditions and give your investments more time to grow.
4. The strategy is too complex.
Some investors like to rely on numerous technical indicators or complex analytical tools, but these tools may cause hesitation, leading to missed opportunities.
How to avoid:
Simplify your investment strategy and focus on a few key indicators, such as market trends and fundamental analysis.
Maintain clarity and decisiveness in your decision-making; do not be distracted by excessive information.
5. Overtrading can erode profits.
Frequent trading not only incurs high transaction fees, but may also increase the probability of investment mistakes due to emotional decision-making.
How to avoid:
Reduce the number of trades and focus on those investment opportunities you truly have confidence in.
Let your investments grow naturally, avoid over-intervening, and refrain from frequent actions due to short-term fluctuations.
6. Selling off well-performing currencies to chase 'potential' coins.
Many investors make a common mistake in a bull market: selling off strong-performing currencies to invest in speculative 'hidden gems', hoping to find the next big opportunity. However, this behavior often leads to diminished returns or even losses.
How to avoid:
For well-performing investments, hold them 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. Blind confidence in a bull market.
In a bull market, the widespread rise in the market can easily lead people to mistakenly believe that their success is entirely due to their ability, overlooking the element of luck. This overconfidence may lead to high-risk decisions such as over-investing or increasing leverage, thus increasing the likelihood of losses.
How to avoid:
Stay humble, recognize the unpredictability of the market, and do not be too confident.
Control the size of your investment positions to avoid putting too much money into one project, reducing risk.
8. Over-diversifying investments.
Trying to seize every opportunity may overly diversify your portfolio, leading to scattered focus and diluted returns. Instead of pursuing quantity, focus on a few truly reliable projects.
How to avoid:
Focus your attention on 2-3 projects that you have researched deeply and truly believe in.
Remember, quality is more important than quantity—an investment strategy that is less but more refined often succeeds more easily.
9. Chasing the dream of '100x returns'.
Many people become obsessed with finding the next project that can bring '100x returns' during a bull market, but these projects often lack fundamental support and may 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 misled by fantasies of quick profits. Holding quality assets for the long term is often the key to achieving high returns.
10. Final advice.
Succeeding in the altcoin season is not just about seizing market uptrends, but more importantly, avoiding mistakes that could lead to significant losses.
Regardless of how the market fluctuates, maintaining discipline and executing a clear strategy is the key to success. Focus on your goals and make every investment decision carefully. Good luck!
