老陳看趋势
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Reasons for losing money in cryptocurrency trading:
Let me give you an example to make it clear
You have 1 million in assets, and you use 700,000 to buy a cryptocurrency. The next day, this cryptocurrency drops by 1%, and you lose 7,000, but you don't care; it will rise back sooner or later.
On the third day, it drops again by 3%, and you lose nearly 20,000. You are unafraid because it will eventually rise again.
On the fourth day, it rises by 2%, and you recover almost 10,000 of your initial investment. You smile, feeling in control of everything.
On the fifth day, it suddenly plummets by 20%, and you lose 140,000. You feel a bit anxious and start to fantasize about a rebound tomorrow.
On the sixth day, it rebounds by 5%, and you breathe a sigh of relief, thinking that trading cryptocurrencies still has its patterns.
On the seventh day, it rises by 1%, and you start to feel hopeful.
On the eighth day, it rises again by 1%. Although you think the rise is slow, at least there's hope of breaking even, and you feel content.
On the ninth day, it suddenly crashes by 30%, and you start to panic, doubting whether you chose the right cryptocurrency.
On the tenth day, it drops again by 10%, and you begin to feel angry.
On the eleventh day, the price no longer fluctuates significantly and starts to consolidate. You see someone online saying this is a bottoming signal, indicating that the market is accumulating momentum, and you firmly believe a rebound is imminent.
But…
In the following week, the price continues to consolidate. You go online to learn some cryptocurrency knowledge, and based on your understanding, you believe this is the so-called "institutional accumulation phase"!
You continue to hold your cryptocurrency..
A month later, the price not only fails to rise but continues to drop by 20%. You start to feel numb, thinking that if it could at least break even, you would withdraw your funds and never touch cryptocurrencies again..
But things don’t go as planned; your cryptocurrency continues to decline. At this point, you finally learn a new concept—stop-loss!
You feel immense pain and inner struggle, unsure whether to liquidate your position or continue holding..
Just then, a good friend tells you that a new cryptocurrency has surged by 200%, and shares his "leading strategy" with you!
You believed it! You actually believed it!
So you sold your cryptocurrency and told yourself,
Once you make a profit on the new cryptocurrency, you'll come back to reinvest, hold it for the long term, and discuss it once you've broken even!
So, do you understand where the root of losing money in cryptocurrency trading lies?
Let me give you an example to make it clear
You have 1 million in assets, and you use 700,000 to buy a cryptocurrency. The next day, this cryptocurrency drops by 1%, and you lose 7,000, but you don't care; it will rise back sooner or later.
On the third day, it drops again by 3%, and you lose nearly 20,000. You are unafraid because it will eventually rise again.
On the fourth day, it rises by 2%, and you recover almost 10,000 of your initial investment. You smile, feeling in control of everything.
On the fifth day, it suddenly plummets by 20%, and you lose 140,000. You feel a bit anxious and start to fantasize about a rebound tomorrow.
On the sixth day, it rebounds by 5%, and you breathe a sigh of relief, thinking that trading cryptocurrencies still has its patterns.
On the seventh day, it rises by 1%, and you start to feel hopeful.
On the eighth day, it rises again by 1%. Although you think the rise is slow, at least there's hope of breaking even, and you feel content.
On the ninth day, it suddenly crashes by 30%, and you start to panic, doubting whether you chose the right cryptocurrency.
On the tenth day, it drops again by 10%, and you begin to feel angry.
On the eleventh day, the price no longer fluctuates significantly and starts to consolidate. You see someone online saying this is a bottoming signal, indicating that the market is accumulating momentum, and you firmly believe a rebound is imminent.
But…
In the following week, the price continues to consolidate. You go online to learn some cryptocurrency knowledge, and based on your understanding, you believe this is the so-called "institutional accumulation phase"!
You continue to hold your cryptocurrency..
A month later, the price not only fails to rise but continues to drop by 20%. You start to feel numb, thinking that if it could at least break even, you would withdraw your funds and never touch cryptocurrencies again..
But things don’t go as planned; your cryptocurrency continues to decline. At this point, you finally learn a new concept—stop-loss!
You feel immense pain and inner struggle, unsure whether to liquidate your position or continue holding..
Just then, a good friend tells you that a new cryptocurrency has surged by 200%, and shares his "leading strategy" with you!
You believed it! You actually believed it!
So you sold your cryptocurrency and told yourself,
Once you make a profit on the new cryptocurrency, you'll come back to reinvest, hold it for the long term, and discuss it once you've broken even!
So, do you understand where the root of losing money in cryptocurrency trading lies?
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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