Why are you losing money?
1. Trading system discipline is lax: Unable to control your hands, buying and selling randomly, too many temptations outside the system.
2. Insufficient stop-loss execution: Knowing that you need to stop-loss, but always holding onto hope, ultimately turning small losses into large ones.
3. Emotional trading is at play: After a loss, unwilling to accept it, engaging in revenge trading, resulting in even greater losses.
These three points are something many cryptocurrency friends can relate to. Next, I will provide a deeper analysis of these three points based on my years of practical experience.
First, for those currencies with complex situations that you cannot clearly see, do not rashly enter; pick the soft ones to squeeze, and trading cryptocurrencies is the same.
Second, do not invest all your money into the same currency at once, even if you are very optimistic about it, and even if it later proves you right, do not invest all at once. Because the market is constantly changing, no one knows what will happen tomorrow.
Third, if you mistakenly buy a currency that is in a downward trend, you must sell it quickly to avoid further losses.
Fourth, if the currency you bought has not yet lost value but has entered a downward trend, you should also exit quickly and observe.
Fifth, for currencies that are not in an upward trend, it is recommended to pay less attention. No matter how it goes in the future, do not accompany the main force to build positions. Retail investors do not have time to waste with them.
