Bad Habits in Cryptocurrency Trading (1)

Experience summarized by someone who's been through it, worth its weight in gold. Investors, please take note.

1. When encountering high-quality coins, if there is no suitable buying point, do not act impulsively. Do not take risks by chasing highs out of fear of missing an opportunity. At this time, remain calm and observe instead of fixating solely on it.

2. When engaging in value investing, do not focus too much on the price. If the price rises as expected, when it falls, consider the reasons behind it. Do not selectively ignore the reality of diminishing momentum in larger cycles and realized valuations, while desperately searching for fundamental positives to support your views.

3. After being trapped in a trade, maintain calm and analyze rationally. Do not allow any bearish voices to disturb you, nor let emotions take control. At this point, rational judgment is particularly important, and it is crucial to listen to various opinions.

4. When making an incorrect judgment, decisively cut losses and exit. Do not fixate on your account out of an inability to accept a losing outcome, leading to deeper entrapment and turning a short position into a long one.

5. If a particular coin has caused you loss, do not develop a deep-seated aversion to it. If an opportunity arises in the future, still assess it objectively; do not refuse to engage based on past experiences.

6. When trading short-term, if you miss selling a coin that still has upside potential, and recovering your cost is not high, consider buying back. Do not miss out on good opportunities due to momentary hesitation.

7. Do not think about buying coins every day. When there are no suitable buying opportunities, be patient and wait. Do not act rashly, even to the extent of exhausting your account's funds.

To be continued...

Trading cryptocurrencies is a process of fighting against human nature. If you cannot conquer human nature, you will ultimately incur heavy losses.

Recently, I have been paying attention to the Musk-themed puppies on the first-level Ethereum chain and have avoided the above bad habits by going against the trend.