Why is trading difficult? Essentially, it is a challenge to human nature. First, making small profits is easy because it aligns with the tendency of human nature to "take profits and run."
Many traders, as soon as they make a small profit, are eager to close their positions, fearing a pullback in profits. This behavior seems reasonable in the short term, but in the long run, it weakens your ability to capture larger trends. Worse still, the regret that arises after a price pullback further reinforces the mindset of "running away early," leading you deeper into the wrong path.
Secondly, making small losses is difficult because it goes against the "gambler's fallacy" in human nature. When the price drops and then rebounds, many people begin to comfort themselves, hoping that "if I just wait a little longer, I will break even." This hesitation makes it difficult to cut losses, and small losses eventually turn into large losses, with traders being emotionally trapped in a vicious cycle of avoidance.
The result is: frequent small profits combined with occasional large losses, leading to a long-term loss in the account. In contrast, true experts do the opposite—they dare to take small losses and patiently wait for large profits, forming a positive profit-loss structure.
Trading is not difficult in terms of technique, but it is challenging in terms of human nature. Only by overcoming desire, greed, and fear can one achieve maturity.
The cryptocurrency market is filled with uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the associated risks when participating in cryptocurrency investments, maintain calm and rationality, and respond to market changes with a stable strategy!
