Next, I'll talk about three types of people; let's take a look at them objectively:
The first type sees a position, lightly invests 1,000 yuan in BTC, and after it rises, invests another 3,000 yuan in ETH. Then, ETH incurs a floating loss later on, and suddenly they feel that the 1,000 yuan profit cannot offset the 3,000 yuan loss. After it drops, they start to think about recovering the loss and put all 6,000 yuan into ETH or other mainstream coins.
The second type is waiting for a long time, and after deep consideration, thinking this might be an opportunity, then going all-in with 10,000 yuan. When it rises, slowly exit the position or sell it all at the target price in one go.
The third type is putting 10,000 yuan with 20x leverage, going all-in, and selling immediately when it rises a bit. If it drops, quickly cut losses.
Theoretically, these three represent three mindsets, and none are beginners; they all have some trading experience. The first type is the hesitant type. They don't lack experience, but they are hesitant to act decisively in the face of perceived opportunities. Many people or analysts are the same; they love to say, 'I told you to buy a certain coin, look how much it has risen.' But the key is not what you say but what you actually do, and being able to go all-in within a controllable range is what matters. This kind of hesitation or slowly spreading positions may not necessarily result in smaller losses compared to going all-in. People often feel that losing 100 is a lot at first, but after a casual trade loses 500, they start to take losses lightly. In fact, it would be better to take losses lightly from the start rather than realizing it too late.
There is also the aspect of trial and error. When trying, one may start to treat trading casually. If you don't go all out, you can never take trading seriously. Some people say that going all-in means it's all gone. I can say that spreading it out makes it easier to lose. Just like bottom fishing and chasing highs are prone to losses, bottom fishing is even more likely to result in losses! (Except for large funds) We can allocate operational funds with the mindset that these funds can be lost. Every trade should be done with full effort; hesitation will only drain your capital, and it will always result in small gains and big losses.
The second type aligns with what I consider a good trading mindset, or one can exit in portions to offset uncertain losses. But it must be planned. Treat trading seriously, and if so, focus on one coin within your capability, go all-in!
The third type is the all-in approach without risk awareness, involving leverage. A friend mentioned leverage to me today, saying it has more potential. Yes, leverage can definitely earn more, but it doesn't scale well. Unless it's short-term, otherwise, once you leverage at this price, your mindset starts to get chaotic. Maybe it's because I haven't honed my skills enough, but I know that most people who make money in futures end up losing in spot trading, unless they are doing short-term and diversifying their positions.
Some might think that going all-in is a huge risk. In fact, it's like chasing highs and bottom fishing. Is it worth buying a coin when it rises or when it falls? If the money in your hand is destined to be used all at once, then doing it in one go is definitely cleaner and more decisive than spreading it out, especially when splitting positions; while you spread, you might forget your own positions. Trading coins could be like being in love; being dedicated makes it easier to achieve results.
This article is limited to non-beginners with some experience in cryptocurrency. First, you must have your own trading system, within which there are your own principles and standards for building positions. Then, make judgments on some positions and buying targets. It must be simple and straightforward; don't spread 100 yuan too thin, and don't make your entry and exit points too scattered. This way, you can make more money.
