1. Five types of failed personalities
1. Gambler type:
Winning leads to young models, losing means going to work in the fields. Each of us is a gambler because gambling is human nature. Throughout human history, regardless of how much suppression is faced, the strong demand for gambling has never changed.
While the cryptocurrency market is different from a casino, it must be acknowledged that the speculative methods of most people in the crypto space are essentially no different from gambling.
Losing money arises from winning money; after unexpectedly gaining profits for the first time, gamblers become overly confident. After experiencing a setback, gamblers try to recover losses, increasing their bets recklessly, trying to recoup their original investments.
Wanting to win more after winning, attempting to recover losses after losing, being stuck waiting for rebounds, fearing missing opportunities, chasing highs and selling lows, etc., are all gambler mentalities.
In the mind, set a virtual imagined goal, completely ignoring the current market trends, and operate based on one's greed, fear, and hopes. Why is fortune-telling sometimes so accurate? Because what determines the so-called 'destiny' of ordinary people is habit, the inertia of behavior, and karma.
Karma forms the cause of an event and is also the outcome; karma is the process from cause to effect. The moment one enters the market with a gambling mindset (cause), they are already ensnared by the web of karma, and thus a tragic ending (effect) is already predetermined.
2. Stubborn donkey type:
Hold on, the team is working. The most typical behavior of a stubborn donkey is to stubbornly endure, especially when facing huge losses during a significant market drop.
Small fears lead to panic, large fears lead to paralysis; the bigger the drop, the more they stubbornly hold on. For example, after facing a crash, a friend in my group failed to stop loss in time and lost millions.
I was very curious at the time and asked why he didn't stop loss in time. He said that after seeing a huge loss, his mind went completely blank, and he was completely shocked.
People tend to react more emotionally to outcomes resulting from taking action than to those resulting from inaction. Therefore, they often choose 'not to take action' for fear of regret.
What if I sell and it rebounds? Wouldn't I regret it more? So I stubbornly hold on. Another reason is that position controls the brain, falling in love with the project party.
After buying a certain type, they automatically block out negative news about the project and changes in market trends. They refuse to listen to any advice, selectively searching for information to validate their so-called correctness and truth.
Is the market still afraid of your stubbornness? The main players love your kind of stubborn donkeys.
3. Get-rich-quick type:
It cannot be denied that the vast majority of people enter the cryptocurrency market attracted by the wealth effect, including myself. There is nothing wrong with wanting to get rich; who doesn't want to achieve a class leap through investment? What truly harms people is the fantasy of wanting to change their destiny through getting rich, as market returns do not come from imagination.
Overemphasizing money itself makes it difficult to stop losses when losing money, and even impossible to hold on for a long time when making money.
Those with a get-rich-quick mentality often exhibit the following three characteristics:
When selecting coins, there is a tendency to prefer low market cap altcoins because the market generally believes smaller and newer coins have more potential for explosive growth. However, the reality is that explosive dark horses are quite rare; 99% of coins, compared to Bitcoin, are on a downward trend. In terms of risk control, those with a get-rich-quick mentality usually have a smaller capital base, so there's hardly a concept of allocation and risk diversification, often buying in with their entire capital, which greatly affects their investment mentality.
When net value falls a little, investors experience significant psychological pressure, leading to frequent operations, swinging back and forth like a fan, becoming a fat sheep for the exchange.
Regarding profit-taking, the concept of taking profit almost doesn't exist; it's sell after a little more rise, and then sell again after another rise, often failing to escape at critical moments.
This is also the reason many who became wealthy during the bull market of 2017 fell back to the bottom or even worse. Greed is endless; the word 'greed' is almost synonymous with 'burn'.
4. Zhao Kuo type:
Knowing so much, yet still losing money. After losing money, most people turn to learning to improve their understanding, reading books, and enrolling in courses. They understand more and more each day, often sharing insights in forums, but secretly they are losing terribly. Why? Because they mistakenly believe 'analysis = prediction = trading.'
However, analysis and trading are completely different matters. The philosophy of analysts is to be as accurate as possible in every prediction and to exaggerate analytical skills, belonging to theoretical scholars.
The spokesperson of the trading faction, traders never predict future trends; their focus is on studying price distribution characteristics, establishing orderly trading rules from a chaotic market.
Investment is different from pure theoretical research; the market is just the market, like a battlefield. Many people can analyze but cannot trade; to put it bluntly, their trading system is muddled, only seeing trends without knowing how to buy or sell, and even unable to control the most basic psychological fluctuations.
"Those who can speak cannot do it; those who can do it do not speak" probably refers to this principle. Don't become an analyst; strive to be a trader.
5. Perfectionist:
We are constantly jumping from one system to another, one method to another, in search of some sort of investment 'Holy Grail.'
However, no matter when you place an order, a more favorable price will always appear, and after each liquidation, the market will show you a better exit price.
The pursuit of perfection is a human nature. Pursuing perfection can lead to the complete neglect of execution and discipline; countless people get lost in the pursuit of perfect trading.
The essence of trading is merely probability; there is no perfect trading Holy Grail. However, this does not prevent you from making money; if you can scoop up even a little from the vast ocean, you've already succeeded. Investment is a game for those who are good at failing!
No matter how impressive you are, if you lose 100%, it's game over, which is why risk control exists. To avoid this 100% failure, some minor losses are unavoidable. 'Good at losing, small mistakes' is the key to surviving and succeeding. Pursue excellence, but do not chase perfection.
2. A struggle against 'human nature'
Mark Twain once said something very profound: 'When you find yourself on the side of the majority, it's time to pause and reflect.' If your thoughts and actions align with those of the majority in the market, why should you be the one making money?
For every participant, investing is a form of practice; greed, obsession, slowness, and doubt are the biggest obstacles on the investment trading road. This is a war against oneself, destined to be difficult.
For investors who want to understand and break through human nature, I recommend developing the habit of keeping an investment trading diary, reviewing daily and reflecting on the psychological changes during trading, examining oneself from a third-party perspective, which is crucial for understanding and transforming one's character.
Investment trading is destined to be a lonely long road, and understanding and breaking the chains of human nature is the most crucial step on the investment path.
The above are the trading experiences shared by the cryptocurrency god today. Many times, your doubts can lead to missed opportunities for profit; you dare not take big risks.
Dare to try, to touch, to understand, how do you know the pros and cons? You only know how to take the next step after taking the first step. A warm cup of tea and a piece of advice; I am both a teacher and a friend who talks well. Meeting is fate, and knowing each other is destiny.
The madman firmly believes that fate will bring people together from thousands of miles away, while those who miss each other are destined. The journey of investment is long; momentary gains and losses are just the tip of the iceberg.
One must understand that even the wisest can make mistakes, while the foolish can sometimes succeed. Regardless of emotions, time will not stop for you. Pick up the burdens in your heart, stand up again, and move forward.
These days, I am preparing for a divine order that is about to start!!!
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