One loss: the loss is due to human greed. If it weren't for selective errors, selling a coin after making 2 to 5 points would still have a pretty good probability of making money.
Two losses: the loss is due to chasing highs and cutting losses +. When the price rises a lot, they don't want to sell, always hoping it can rise a bit more, wanting to eat from the head of the fish to the tail, ideally even eating the fish bones. When they are losing, they hurriedly cut losses and leave.
Three losses: the loss is due to cognitive errors. Seeing those air coins worth only a few cents +, cheap, buying a lot in one go, and overnight they drop to a few cents, or even to zero.
I have been struggling in the crypto world for a whole decade. I have experienced three bull-to-bear transitions +, from an initial capital of 6,000 yuan to achieving financial freedom today. Along the way, I have almost stepped into all the pits, but it is precisely these experiences that have allowed me to cultivate my own stable profit system.
In my opinion, the highest realm of trading coins is being able to control one's own greed. It sounds simple, but how many people can actually do it? In most cases, holding on can steadily make money, but many people bring the stock market's chasing highs and cutting losses strategy into trading coins, and then get harvested.
Clearly making money is so easy, why are 90% of people in the crypto world losing? Because they are too greedy, wanting to buy at the lowest price, sell at the highest peak, or want to capture all the profits from every short-term fluctuation. Little do they know, neither you nor I are gods.
1. Do not stop loss, short-term becomes medium-term, medium-term becomes long-term
As a long-time investment professional, we are often asked, 'What is the most common mistake investors make in the investment market?' My answer is the lack of immediate and rapid stop-loss. Due to the leverage effect of bidirectional investments +, both profits and losses are magnified. The consequences of not stopping losses in time are often extremely serious. The same goes for the coin trading market; we all know that our most precious wealth in the coin trading market is our investment capital, which is like ammunition on the battlefield. Without ammunition, failure is inevitable. We must always pay attention to protecting our capital and not let losses expand indefinitely. Many people hope, pray, and dream of finding a perfect trading method that can achieve complete profitability without needing to stop loss. In a word, such a perfect method of making money is impossible in any field. Successful trading methods, like successful living, are not obtained by avoiding losses, but by controlling the severity of losses. Switching time frames is also a common mistake in the trading market; the so-called switching time frames is also a disguised form of not stopping losses and not admitting mistakes. It happens like this: a trader buys a contract with the aim of obtaining a good short-term profit, but the market trend does not produce the desired effect. This investor does not sell within the limited timeframe of the short-term but decides to hold the contract and switch to medium or long-term investment. This is just a reason for not wanting to stop losses; this method of switching time frames will definitely lead to disaster, and stopping losses is the only way to avoid disaster.
2. Not paying attention to capital management +, not controlling the position
We use our hard-earned money to participate in trading coins, which is not fundamentally different from investing in a convenience store near your home. If the small owner of the convenience store came to you for some money for his small shop, how would you consider whether to invest or not? How much would you invest? Would you make a rash decision like in trading? The so-called capital management is precisely about solving the problems of whether to invest and how much to invest.
The suggestion for beginners is to divide the funds into six parts, investing only one part at a time. As their experience gradually increases and their investment accuracy improves, they can slowly increase their positions. However, at any time, the holding of one variety should not exceed fifty percent of the total funds. Otherwise, once a mistake occurs, it will be very difficult to recover. For example, if you have 100,000 yuan and you lose fifty percent at once, you will only have 50,000 yuan left. To earn back to 100,000 yuan from 50,000 yuan, you need to earn one hundred percent. Anyone with a mathematical background knows that achieving one hundred percent is much longer than achieving fifty percent.
In the field of capital management in the United States, a survey was conducted: the most important thing for a fund that can win in the long term is not when or at what price to enter, but how much the fund has bought. This is also the term often mentioned in the investment industry: capital management. If you do not pay attention to capital management methods in trading coins, you will definitely not reap the final victory fruit.
Personal experience summary:
1. Plan your funds reasonably for trading coins, ensuring you have food in hand and calmness in mind! 2. Do not make emotional trades, do not be blinded by profits and place orders blindly. 3. Develop a good trading plan and follow the market.
No one becomes rich without unexpected wealth, and no horse grows fat without night grass.
Tomorrow's success depends on today's choices.
Screening 55 Impermanence Band, those with strong execution come!
Impermanence Band Impermanence Band! Important things are said three times
