I found that 99% of the people in the cryptocurrency world end up as 'chives' have a particularly fatal bad habit.
Every time the price of a coin starts to drop, they get stuck like they've been glued, and they absolutely refuse to sell. They hope to wait for a rebound before selling, thinking that this way they can minimize losses or even make a profit.
But what happens? Today, the coin price rebounds a little, and they miss the chance to sell, then it drops by two points, and they still can't bear to sell, thinking about waiting a bit longer.
By tomorrow, the coin price rebounds and drops again, and they say there’s no opportunity to sell. By this time, it has already dropped three points, and they still grit their teeth and hold on.
The day after tomorrow, the coin price rebounds by one point, and they still feel it hasn't returned to their cost, so they don't sell. They drag it out like this, and the coin price slides down like a slide, slowly dropping by dozens of points. Not only do they lose the hard-earned money they had before, but they also end up losing a lot more, resulting in significant losses.
What kind of correct trading method is this! In trading, if you don't know how to cut losses in time, even if you previously made a lot of money, just one mistake can cause you to lose everything you earned before, leaving you with nothing.
I have studied those top traders who are good at trading; they immediately cut their positions as soon as the coin price drops, without any hesitation, immediately admitting their mistake, and then finding new opportunities to fight again.
I do the same, unless it's a kind of value investment that I am super confident in, I dare to buy more as it drops. Otherwise, before every order, I always prepare my stop-loss plan clearly in advance.
If I haven't prepared a stop-loss plan in advance, one mistake could lead to irreversible losses. This is far from what a mature trader would do.
So every time I recommend a coin to everyone, I always include the stop-loss points. Trading is something you have to do for a lifetime. If you want to survive in the market for a long time, this fatal bad habit must be changed. Before each order, you must prepare your stop-loss plan in advance. Don't wait until after it drops to daydream, thinking 'I'll sell when it rebounds'; that's just self-deception!