In cryptocurrency investment, a common phenomenon occurs: intending to do trend trading, yet frequently getting lost in operations—wanting long-term gains, also wanting to catch medium-term waves, and even not letting go of short-term small profits, ultimately yielding less than expected, frequently being trapped in losses, and missing out on trend dividends.

This problem superficially appears to be a "opportunity cost" trap, but in reality, it is a triple misjudgment of cognition, mindset, and execution ability:


The vicious cycle of wrong operations: from trend trading to uncontrollable losses
Step 1: Change long-term to medium-term, cash out profits early
Originally planning to hold a coin for a year, fearing a correction after a 10% rise, hurriedly taking profits, and missing subsequent doubling opportunities.

Step 2: Change medium-term to short-term, repeatedly chasing highs and cutting losses
Seeing short-term fluctuations in coin prices and frequently switching positions, buying high, cutting losses when prices drop, leading to transaction costs and emotional trading, resulting in decreasing principal.

Step 3: Trend trading is completely out of control
From the original intention of "making big money," it has devolved into the retail mindset of "making a little and running away," ultimately exhausting the principal through frequent operations.


How to truly grasp the wealth of trend trading?
1. Clarify goals and focus on one strategy
- Anchor the direction before investing:
- Long-term investors need to have a "steady as a mountain" mindset, focusing on macro cycles (such as Bitcoin halving);
- Medium-term traders focus on wave buy and sell points (such as breaking the 60-day moving average);
- Short-term players closely watch 15-minute candlestick fluctuations.
- Warning: Attempting to "eat it all" (long, medium, and short) will only lead to confusion due to conflicting strategic logic—like pressing the gas and brake at the same time while driving, which will eventually lead to losing control.

2. Give up the obsession with "overall market returns"
- To do trend trading, one must accept short-term fluctuations:
For example, when BTC rises from 20,000 to 30,000 in 2024, there will inevitably be a 30% correction along the way, but long-term players should ignore this kind of fluctuation and hold their positions.
- Anti-greed principle:
Set the boundary for "non-target returns" in advance—such as holding ETH without participating in short-term speculation of other altcoins, rejecting the mindset of "getting itchy when seeing others make money."
- An old saying goes: "You can't have both fish and bear's paw, but when the fish is big enough, it is also satisfying enough."

3. Strengthen trend belief with cognition
- The core of trend trading is to "see the big direction clearly":
- Fundamentals: Study BTC's scarcity, ETH's ecological moat, and other long-term logic;
- Technical analysis: Confirm the trend through multi-period moving averages (such as the 200-day moving average), rather than being disturbed by short-term candlesticks.
- Case study: In the 2022 bear market, investors who firmly believed in "BTC's long-term scarcity" added positions at 16,000 USD and ultimately gained double returns in 2023, while those who panicked and cut losses missed the opportunity.


Ultimate conclusion: Patience is the only pass for trend trading
The market is never short of opportunities, but the ones who truly make money are always of two types:
- Those who have a deep understanding of trends and can hold on during fluctuations;
- Those who can restrain greed and strictly execute a single strategy.

Investors who lack patience will eventually fall into the cycle of "making small money and losing big money"—remember: what trend trading earns is not money from skills, but money from "cognition realization + time compounding."

Still confused about how to operate? Follow me for daily market interpretations + practical strategies, and say goodbye to blind trading!

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