🔥 Why do 9 out of 10 people lose money in trading cryptocurrencies? How many of these 9 self-destructive actions have you fallen for? 💸
1️⃣ Blindly following the trend and chasing highs and lows
When you see a cryptocurrency suddenly skyrocket, the FOMO (Fear of Missing Out) kicks in, and you rush to buy, only to find yourself stuck at the peak. Remember: the crazier the rise, the harder the fall!
2️⃣ Trying to catch the bottom halfway down
Not understanding the value of the project and thinking a 10% drop means it’s the bottom, only to catch it in a downward continuation. Real experts wait for the golden opportunity to strike.
3️⃣ Hands itching to make random trades
Clearly not at a buying or selling point, but still opening trades for the thrill. A day without trading feels unbearable, and the transaction fees could cover half a year’s worth of instant noodles.
4️⃣ Falling in love with a cryptocurrency
Heavily investing in a particular coin creates a bias, and even when the K-line (candlestick chart) looks bad, you stubbornly hold on, eventually turning from a short-term trader into a shareholder, with your wallet shrinking to a collectible.
5️⃣ Blaming the market for losses
When you face liquidation, you curse the project team for running away, and when trapped, you blame the poor market conditions. You never review your trading records, and you can fall into the same pit seven or eight times.
6️⃣ Going all-in without understanding the K-line chart
Not even knowing how to draw support and resistance levels, relying solely on "feelings" to place orders. While others enter based on MACD golden crosses, you make trades based on horoscope predictions.
7️⃣ Always fully invested without a backup plan
No matter if your capital is 1,000 or 100,000, you always go all in, leaving no exit strategy. When prices rise, you don’t take partial profits; when they drop, you’re left staring blankly without funds to average down.
8️⃣ Emotions driven by price movements
Panic selling after a 5% drop, and urgently taking profits after a 3% rise. Your trading records are filled with fragmented small orders, and you earn barely enough to cover transaction fees.
9️⃣ Gambler's mentality trying to recover losses
After losing, you want to increase your position to lower the cost basis, but the more you add, the bigger the hole gets. In the end, you either lie flat playing dead or queue on the rooftop.
💡 Tips to break the cycle:
Invest with spare money, using funds you wouldn't mind losing for practice
Always set stop-loss orders for every trade; cut losses if they exceed 5%
Learn to analyze on-chain data and project fundamentals
Create a trading plan and print it to stick on your computer
Spend 10 minutes daily writing a trading journal
Remember: Surviving in the cryptocurrency market is more important than making quick profits!
