During this time, many friends have reached out to me saying they have suffered significant losses. I want to discuss this issue. When entering a position, we inevitably encounter situations of loss. When the loss is controlled within 20%, most people have the awareness and ability to decisively cut losses. However, when the loss reaches 50% or more, psychological and decision-making processes often undergo significant changes.

At this point, in many people's subconscious, the first coping strategy that emerges is to increase their position. Because after already bearing a 50% loss, cutting losses means solidifying those previous losses, and the psychological impact and sense of loss make it hard to accept. In contrast, the idea of increasing the position tends to dominate, gradually overshadowing the stop-loss mindset that should have been adopted.

This is why in the cryptocurrency market, many investors' assets can plummet from losses down to -80% or even -95%, nearly approaching zero. In reality, this is not because you cannot understand market trends, but because under immense loss pressure, the mind instinctively resists following the trend. As losses continue to escalate, cutting losses at the lowest point seems to become the most helpless choice, which breeds a mentality of luck, always hoping for a market reversal and asset recovery.

However, reality often goes against our wishes. In cases where the market trend has clearly deteriorated, this mentality of luck often leads to further misguidance, causing you to make irrational decisions, ultimately resulting in expanding losses and falling into a vicious cycle of increasing losses. Here, I want to remind everyone to view the market rationally when entering a position! Living longer = earning more! Don’t open a position if you are unsure, and hold back if the market conditions are not right.