From 50,000 to now several million. It is also through trading cryptocurrency that I achieved class transition and financial freedom! If you say there was no cryptocurrency opportunity, I might still be working overtime at some company, easily being bullied by my boss or being difficult for clients! I have had this chance to turn my life around. How many people spend their whole lives only to see this opportunity slip away! Or they may never have it! And one day, the phrase 'ten years in a day' is really not said in vain. The cryptocurrency space is indeed a place that easily inspires faith.
2024 will start a crazy bull market in advance, 2024-2025 will be incredibly wild, unimaginable!! Frequent losses and being trapped, have you found the underlying reasons? No matter how many points you are trapped, it can be reasonably resolved. Choose the right entry points to make up for losses, turning passive into active.
First, based on the position held, make the following judgment.
1. Investors with slight losses can use rebound opportunities to break free or reduce positions at highs.
2. Investors trapped at high positions can also make partial reductions when prices rise. This way, during the next wave of market movements, they can maintain psychological and capital advantages. The second is to make judgments based on technical conditions.
1. If trapped at a high position, one must cut losses immediately.
2. If you are in a middle position, you can temporarily observe based on the current situation to seek opportunities to break free or reduce positions at highs to minimize losses.
3. If at a low position, do not rush to cut losses; wait for the purchased coins to stabilize after dropping, and when it hits significant support levels, dare to buy more at low prices to average down costs. In the upcoming rebound, rescue the high positions that are trapped.
Third, make the following judgments based on trend conditions.
1. If in an upward trend, there is no need to cut losses; patiently hold for a while, and you will definitely break free, with the possibility of making significant profits.
2. If in a balanced fluctuating trend, there is also no need to cut losses immediately. Patiently wait for the coin to enter a high point in the fluctuation cycle, and once freed from being trapped or with losses minimal, decisively exit.
3. If in a downtrend, once it is confirmed that a downtrend has formed, one should immediately cut losses and not harbor illusions. Any hesitation and doubt can lead to being deeply trapped and unable to escape. For reducing positions or cutting losses after being trapped, investors must act decisively, especially in a downtrend.
This is common. Many investors have such experiences; after being trapped, they hope every day to break free. Finally, one day they can break free, but they are reluctant: I have held on for so many days, I must make some money. As a result, they miss the best opportunity to close their positions, and when the market enters a downturn again, they are trapped once more. Ultimately, they are completely desperate, lose confidence, and cut losses to exit. This is the most taboo in a downtrend; after being trapped, no matter what, it is a passive operation. Breaking free is certainly a basic skill that investors must master, but investors should focus their energy on improving analysis skills and operational levels before being trapped, to minimize the number of times they are trapped and to maintain an active position in both capital and mindset. This is the most important.
Special reminder: Follow the trend in trading, operate in the direction of the trend. Do not be stubborn and resist the trend. You can contact Teacher Taolue directly to view personal profile icons!
After being trapped, seeking help everywhere? Be proactive and reduce risks in advance by following the correct thoughts! Earning money from nothing is achievable if you are committed. Those who are reluctant to give up will only remain stagnant in life. To go further, who you walk with is key! A thousand words are not as good as a profitable trade; repeated failures are worse than taking a bold risk! Frequent operations are not as good as precise trades, making each trade valuable. What you need to do is find me, and what I need to do is prove my words are not false. May our acquaintance begin with words, align with character, be grounded in technology, endure with kindness, and conclude with integrity.
There are many common situations of emotional cutting losses. The following three are the most common intra-day fluctuations.
When a coin experiences intra-day fluctuations, it is essentially the major players taking advantage of retail investors. During the up and down fluctuations, if retail investors buy more, the coin price is likely to end with a significant drop. If retail investors panic and sell more, the price is likely to rise after the fluctuations.
2. Chasing highs and selling lows.
Chasing highs and selling lows is also the most common emotion. Behind the chasing and selling is the fear of missing out and the fear of being deeply trapped.
The emotions of chasing highs and selling lows can also be easily manipulated by major players. When many people chase highs, major players can easily sell off. In the morning, they may induce buying heavily, and by the afternoon, they could plummet to show retail investors, making the following trends lose over 10%. The major players just happen to do a round of washing, causing retail investors to panic and exit. The price should not be chased, but rather the trend. Retail investors’ limited understanding turns them into fodder for capital.
Negative news and positive news.
Another point is that both negative and positive news can be manipulated by major players. Negative news can suppress coin prices, but it can also be interpreted as having reached its limit, allowing prices to rise significantly. Similarly, positive news can push prices up or be used to facilitate selling.
Therefore, how to interpret positive and negative news is determined by capital. How capital operates is essentially based on market reactions and retail investors' actions. When retail investors panic, capital greedily buys; when retail investors are greedy, capital escapes immediately. Using emotions to cut losses is truly done to perfection by major players, and one can say it is done with ease.
Remember! Countering emotions is the only way for retail investors. There is a saying: 'The most people lose money in a bull market.'
Now thinking back, it makes sense. BTC keeps hitting new highs, right? Let's list the mistakes that retail investors make that lead to losses.
1. Not researching, blindly following trends to buy.
2. In a situation with limited capital, holding too many positions.
3. After losses, failing to understand in depth and timely cutting losses.
4. Choosing to do nothing after incurring floating losses, without continuous tracking, feedback, and optimizing the holding strategy.
In fact, as long as you continue to track—feedback—optimize, and persist in research and study, it is possible to reduce losses and expand profits. A very obvious pattern is that when Bitcoin drops slightly (2-3%), altcoins generally plummet, while when Bitcoin rises slightly (3-5%), altcoins generally soar.
One thing that many newcomers forget is that at the same price level, after a drop, it takes a larger increase to recover. For example, if you buy at 10 and drop 50% to 5, you need a 100% increase to break even. First, let everyone know these 7 types of people are not suitable for trading cryptocurrency. Which one are you?
1. Hesitant and indecisive people.
Such a personality can be particularly fatal during a significant downturn in the cryptocurrency market. Because they are not decisive and always think that prices might rise soon or that there may be further increases, when it is time to sell, they often delay and miss opportunities, ultimately suffering losses.
2. Impatient individuals.
Trading cryptocurrency sometimes requires patience, which is a great test of endurance. Those with a very impatient and impulsive personality may occasionally hit the right rhythm, but they are prone to make mistakes due to impulse and end up chasing highs and selling lows.
3. People who pursue perfection.
When trading cryptocurrency, do not aim too high. In any task, pursuing perfection can lead to frustration over minor shortcomings, leading to self-blame and regret. During operations, randomness, speculation, and betting aspects are all launched in full force, but opportunities are indeed rare, making it difficult to let go.
4. Emotionally unstable individuals.
In the cryptocurrency market, emotions are extremely unstable, rising and falling dramatically, with poor self-control, easily influenced by the environment. When profiting, they are overjoyed and forget the risks ahead; when losing money, they feel disheartened and discouraged, blaming everything.
5. People with a stubborn personality.
Individuals with extreme personalities and an inflated self-evaluation, who often trust their unilateral judgments when buying stocks, refuse to listen to any advice, even ignoring warnings from other investors. When facing setbacks or failures, they project their frustrations onto others.
6. People who do not pay attention to news.
How can someone who is unaware of current events operate well with their coins? Especially in China, if you pay little attention to dynamic news, then you can be considered a headless fly in the cryptocurrency market. Those who dare to invest all their savings must have a deep understanding of the market situation.
7. People who want to get rich overnight.
Everyone in the cryptocurrency market hopes to make money, but the myth of becoming rich overnight is not easy, right? How can an untrained individual without systematic knowledge become rich overnight in the cryptocurrency market? Perhaps some truly do rise to a new level, but for ordinary investors to become such people, how difficult is that?
It's still that saying.
Shendan is still arranging every day!
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