What are the current market rules? A rapid rise corresponds to a rapid fall. For now, we'll keep our empty positions and wait for a pullback to stabilize before entering the market.
So what if it continues to rise without a pullback? Then we won't do anything!!! Are there still people fully in cash? Not many, basically everyone still holds at least 30%-50% of the coins they were previously stuck with, so even if there is no pullback, we can still passively recover our losses. A point I've emphasized many times: money can’t be made endlessly, but losses can be minimized.
If the principal is 1 million and you lose 20%, you need a 25% recovery.
If the principal is 1 million and you lose 50%, you need a 100% recovery.
If the principal is 1 million and you lose 70%, you need a 333% recovery.
If the principal is 1 million and you lose 80%, you need a 500% recovery.
Saying it this way, you can feel it. Now let’s change the example: if you put in 100,000 and everyone else hasn’t entered yet, you make 10,000 and at this moment you feel like the best trader in the crypto world. When others are fearful, you are greedy, but you are still a bit off. Now, the second time is the same; everyone hasn’t entered yet, you go in and get stuck 20%. When the market becomes clear and everyone else starts entering with 100,000, your principal is only 88,000. Even if there is just a 10% pullback, you’re left with only 99,000. Although your principal is less than others, you wasted time and experience. However, you didn’t walk away empty-handed; at least you learned a lesson.
