There are two ways to profit from collective behavior. The first is momentum trading—buying when traders are slightly aware and the market is gradually pushed higher, and selling when the market loses its upward momentum. It is extremely difficult to identify a new trend before it has formed. As the trend becomes clearer, the entire group begins to become restless: amateur players are convinced of their positions; while professional traders remain calm and continue to monitor the developing trend. As soon as they notice that the group begins to return to a normal state, they will cash out without waiting for the market to reverse.

The other method is contrarian trading strategy. This approach believes that market deviations will inevitably revert to the mean. Contrarian traders short when the upward momentum has exhausted and add positions when the downward speed begins to slow. Beginners often prefer contrarian trading (the market can’t possibly keep falling, let’s jump in!), but most investors end up trapped at the peak of prices, standing guard at the top of the mountain. A man who enjoys urinating with the wind has no right to complain about exorbitant laundry bills. Only with adequate preparation, ensuring that they can retreat safely when trouble arises in the market, can professional traders engage in contrarian trading. If you want to take a shot at a market reversal, you must ensure that your exit strategy and risk management plan are fully adjusted.

Both momentum traders and contrarian traders profit from two opposing behaviors within the group. Before executing a trade, be sure to determine whether you are making an investment action, or engaging in momentum trading, or contrarian trading. Once the trade order is established, please stick to the original plan! Never change your strategy during a trade, as this will only increase the chips in your opponent's hands.

Amateur players think about trading all day, while professional traders spend the same amount of time thinking about how to exit safely. They also place great importance on risk management, calculating the position size they can withstand under current market conditions, whether to adopt a pyramid position management method, when to cash out some profits, etc. They also spend a lot of time keeping thorough trading records. #Strategy增持比特币