I found that retail investors generally lose money in this way.
First, they rush to invest heavily in a coin, and then they stare at it every day like a hawk. If the coin goes up a bit, they feel great, overjoyed; but if it drops, they immediately get disheartened, feeling terrible and distressed.
If the coin keeps falling, retail investors start to panic, fearing it will drop even more, endlessly. Out of fear, their hands start to shake, and they sell at a loss.
And the result? Just after selling at a loss, the coin rebounds and rises sharply. Retail investors see this and think, "Oh no, I regret it," and quickly chase after it to buy high again. But the market loves to play tricks on people; as soon as they buy, the price drops again. Retail investors feel frustrated, panic again, and sell at a loss once more.
This back-and-forth happens several times, and you see, the price of the coin hasn’t changed much, but the retail investors' positions keep getting smaller, and their money is slowly drained away. This is the outcome of frequently opening positions and frequently being cut!
Are you like this too?
