No matter how the market is right now, looking at the historical route from #BTC shows that there is no direction other than up. First, avoid the pits, then talk about making money!
First Pit: Staring at the market for a long time
After staring at the market for a long time, you will make hurried buying and selling decisions based on the ups and downs of the market. Decisions made in haste are usually wrong unless you have an extraordinary sense for the market. Even if you have a trading plan, long-term observation can make you anxious. Remember: a calm mind will always outperform an unsettled one.
Recommendation: Create two accounts to solve the problem of staring at the market for too long. Use one account for short trading and another for medium to long-term trading. Use small funds for short trades, and when short trades double, transfer the profits to the medium to long-term account.
Second Pit: Ignoring long cycles
Many people focus on 5-minute or 10-minute trends when trading coins. The shorter the cycle, the more erratic the trends, leading to frequent trading. Recommendation: Look at the 5-day, 10-day, and 30-day moving averages on the daily level, especially the 30-day moving average, which is considered the lifeline of the market.
Third Pit: Always looking for the top
Always looking for the top to prove their judgment is correct, this easily overlooks trends. Those who are always looking for the top cannot persist and cannot manage their positions, resulting in being washed out of the market early.
Fourth Pit: Do not blindly believe media statements
Do not forget the characteristics and inherent rules of the coin market. Often, some media statements are goal-oriented and related to their own economic interests. Do not easily believe the words of big names; do not enter groups through recommendations. Learn methods and techniques, and develop the ability to make money independently in the long term. Believe in yourself.
Fifth Pit: Inquire about news everywhere
Good at inquiring, believing in strong coins, frequently adjusting positions and switching coins, very dependent on news, riding the bull and hopping like a rabbit.
Sixth Pit: Holding coins too scattered without logic
Holding coins too scattered means a lack of energy for analysis, not daring to take large positions, and even less daring to hold on. Remember, do not scatter varieties; both short-term and long-term can operate the same coin. Make short-term profits and then enter the medium to long-term.
Seventh Pit: Insatiable greed leads to high selling and low buying
Always wanting to earn more money leads to trying to make waves, going all in and out, resulting in higher costs, and even accidentally missing the opportunity, not daring to chase, thus missing out on the main surge of a strong coin.
Eighth Pit: Throw away good coins and keep bad coins
Those who make money are afraid to hold, while those who are trapped cling desperately. Pull out the flowers and water the weeds. Remember, the strong will always be strong, and the weak will become weaker.
With the weekly trading volume expanding, there is certainly capital entering the market. Look for strong coins that have value, story, and concept, and the market capitalization must be high.
Ninth Pit: Impulsive thinking despising the market
In the early and mid stages of a bull market, be cautious. When it reaches the later stages, let go of inhibitions; whatever you buy rises, and you feel like you have become a god. The more things go smoothly, the more you need to remain calm.
Tenth Pit: Always wanting to buy back at a low price after selling good coins
No one can sell at the highest point. Before selling, you must tell yourself that if you sell incorrectly, you must have the ability to buy back at a high price; otherwise, the longer you wait, the higher it will go.
Eleventh Pit: Thinking too highly of oneself at the end of a bull market
Most people start entering the market very humbly, but in the later stages of a bull market, they think they are divinely inspired, believing that making money is easy, no longer learning or thinking seriously, even anyone can start recommending coins.
Twelfth Pit: Remember not to act out of spite
Blindly competing to be strong, insisting on wrong practices just to prove themselves right, even forgetting that we came to make money. At any time, do not act out of spite; be flexible.
Thirteenth Pit: Position allocation in a pyramid shape
People who didn't make money in a bull market didn't miss the bull market wave; they misallocated their funds in an inverted pyramid shape, starting with a small position, then using large funds as prices rise, selling houses and cars as prices continue to rise, and finally borrowing high-interest loans, always believing that making money is easy. They initially made several times their investment, but the subsequent amount of funds was ten times that of the previous ones. As soon as there is a 30% adjustment, all the previous gains are lost.
