Retail Investors Suffer Heavy Losses – Causes and Remedies
Recently, I have communicated with several new fans, and without exception, they are all suffering losses, and quite severely, which is very painful. As a veteran in the crypto space for over a decade, I understand that it is difficult for retail investors to make money in the market. However, compared to previous bull markets, this round of bull market has been particularly devastating for retail investors. Bitcoin continues to hit new highs, yet retail investors are unable to make money. Why is that? I have summarized a few key reasons.
1. Most retail investors do not own Bitcoin, and those who do have very little. Many retail investors hold Ethereum, but in this bull market, Ethereum has also performed poorly. Most people have already exited the market, with very few holding on.
2. The vast majority of retail investors are heavily invested in altcoins, often at full capacity, and many entered the market at high prices in March. Currently, altcoins may have rebounded slightly, but they still only reach about half or a third of their cost price. So far, this bull market has only been a bull market for Bitcoin itself, while the altcoin season we anticipated has become an altcoin sacrifice.
3. A large portion of retail investors are trading contracts, but their skills and mindset are lacking. They are caught in a cycle of repeatedly opening positions, resolving losses, cutting losses, holding on, and facing liquidation, where they only earn peanuts and lose big.
The above points are the main reasons for the heavy losses of most retail investors. In fact, the vast majority of people are not suited for trading, yet everyone hopes to make money in the market, even to get rich. So what should be done? I believe that the first step is to stop frequent trading because you cannot grasp what to buy, when to buy, and when to sell, leading to a gradual shrinkage of assets. I recommend that most retail investors invest in a few mainstream valuable coins regularly, buying in batches when prices are low, and then taking profits in batches. This way, making money should not be a problem. I and the members of the community have made several regular investments in BTC, ETH, and SOL during this bull market, and the returns have been quite substantial. Additionally, if your skills and mindset are lacking, avoid trading contracts. If you must trade, find a teacher or community that can help you achieve long-term stable profits, as there is still an opportunity to make a comeback in the subsequent market!