Let me analyze the psychology of those who missed out and the reasons many people lose money in short-term trading.
Psychology of those who missed out:
Starting from 28,000, Bitcoin is currently just rebounding; the rebound is for a better waterfall, and from a technical perspective, there is likely a larger waterfall ahead.
It's less than 30,000, it's nothing but a joke; no worries, it’s a technical rebound and hasn’t broken through the previous high, all just to get retail investors on board.
Now it’s at 31,000; don’t believe me? I’m sure there will be one last drop. I haven't boarded yet; looking for an opportunity to short.
Later, it hit 32,000; did it directly reverse? I won't miss out, right? Maybe I should wait a bit longer.
Then BTC keeps climbing higher, watching the increasingly heated market sentiment, and you directly go in with large positions, then a pullback comes.
Reasons for losing money in short-term trading:
Every time there's a slight pullback, I think, 'I bought at a high position, it won't rally, I missed it, the waterfall is finished, hurry to stop loss.'
Did I just blow up as soon as I hit stop loss? What’s going on? After a few operations, money is getting less and Bitcoin is getting higher.
Losing money with contracts:
The first type, shorting and hitting stop loss, 'No, I’ll go long and chase it.' As soon as I chase, it’s a waterfall. Damn, hurry to stop loss, and once I stop loss, it rallies.
The second type, am I a fool to insist on trading a falling altcoin contract? Stop loss and I get blown up.
The third type, missed out on spot trading, I must open a hundred times leverage to chase in, and as soon as I enter, it crashes, and I get liquidated.
These are the various mindsets of rookie investors I’ve observed along the way; very real and quite helpless.
Many people have lost money, and they always say it's because their skills are not up to par.
In fact, there is a pattern in the financial market.
In the long run, good targets do indeed keep rising. However, during the process of rising, most of the time they are actually falling. The time spent rising might only account for 10%. The time of significant growth might only account for 5% of that 10% of rising time. This means you make big money in just a moment, and if you miss that 5% within the 10%, you lose the big profits.
If you don't believe it, you can open your trading software and check any target.
Any target's shape is like this: first phase consolidation and fluctuation, second phase take-off, third phase peak formation, fourth phase decline.
Dollar-cost averaging is perfect for buying in the first phase, selling in the second phase, and in the third phase, you can buy some or not buy at all.
Many people always ask around, at what point can I buy at the bottom?
Actually, if you want to buy, there is no need to hesitate. You ask how to buy to make the most profit, rather than which range to buy to achieve decent returns.
Your mind is constantly thinking about making the most money with the least amount of money.
Buy at the lowest, sell at the highest.
Once you have the concept of buying at the bottom and the idea of selling at the top in your mind, that's the beginning of losing.
You just need to know that buying during a pullback and holding for a few years is likely to yield 3-5 times returns. So why not consider buying? What’s there to hesitate about? Opportunities fleetingly vanish in such hesitation and entanglement. It's not just in the crypto space; it’s the same elsewhere. Character ultimately determines fate.
I’m done writing, keep it up, I’m Ling Ge.
Currently, the winds are turbulent, and we almost share passwords every day.
Still, the same saying, if you don't know how to do it, click on my avatar, follow me, spot planning, contract passwords, free sharing.
I need fans, you need references. Guessing is not as good as following.