How to Break Free from the Retail Investor Mindset

Think before you act

For example, during this wave of sharp declines, how many people starting with 76 were scared into selling at a loss.

Who are the people easily scared away? Let me give you some typical characteristics.

Those who take out loans for all-in gambling/all-in with their entire holdings/contract leverage players/those who lack understanding.

During a downturn, the pessimistic mindset of these individuals is the easiest to amplify infinitely.

At that time, I said 77 was the major bottom; just look at the comments on that analysis post to understand everyone's state of mind back then.

If you had had a stronger understanding and been a bit braver at that time, this short-term Bitcoin rebound could have reached a high of 84,000, yielding 10 points, or you wouldn't have sold at the low point.

I find it’s always the same; for instance, looking at the phase bottom in August 2024, and the phase top in December and January feels just as consistent emotionally.

So in extreme market conditions, don’t rush to let your emotions find an outlet; from a mindset perspective, it’s crucial to see market fluctuations from a god-like perspective. This is the key to breaking free from the retail investor mindset.