Why Do You Always Lose Money When Trading Cryptocurrencies? Let's Identify These Fatal Mistakes!
Are you always puzzled why others are raking in profits while you're losing money? Don't rush to complain; first, reflect on it. The reasons for your losses might be hidden in these fatal errors:
1. Impatience, repeatedly cutting losses, exhausting your capital
Many people trade cryptocurrencies like ants on a hot pan, panicking and selling at the slightest loss. They throw away their investments like hot potatoes. As soon as they sell, the price rebounds. They sell again out of anxiety, buy into other cryptocurrencies at the slightest movement, and within days lose again, cutting losses in a panic. This cycle continues, and their capital flows away like water. Remember, trading cryptocurrencies is not a shortcut to overnight wealth; even Buffett only makes about 20% profit a year. Why the rush for ordinary people? Be patient; you might just wait for a turning point.
2. Lack of respect, blind operations, guaranteed to hit a wall
In the crypto world, some people are like headstrong novices, lacking both confidence and respect. They don't understand market makers' strategies or technical indicators, yet operate blindly with misplaced confidence, believing everything others say without any judgment. It’s like a sailor who doesn’t check the weather or navigation and rushes into the sea; it’s no surprise if they capsize! In the crypto space, lacking respect and preparation is like groping in the dark; you will inevitably incur heavy losses.
3. Randomly selecting coins without a method, precisely stepping on mines
Choosing the right cryptocurrency is key to trading; getting it right means you've succeeded halfway. However, many choose coins like headless flies, without any method. First, look at the technical aspect; if the candlestick chart is chaotic, you can abandon the fundamental aspect directly. If the technical aspect is strong, like ONDO, it indicates active trading and strong backing, which means potential. Next, check the trading volume; if it’s pathetically low like stagnant water, don’t buy it. Finally, look at the MACD and KDJ indicators; if they form a golden cross resonance, the likelihood of price increase is high. Choosing such coins is more likely to yield profits.
Stop trading cryptocurrencies blindly; reflect and correct your mistakes. Who knows? You might be the next one to make money!
