From the Dream of Getting Rich to the Life of Chives: 90% of People Die at This Step
The Most Ironic Reality in the Crypto World:
You can indeed make money, but in the end, you will lose it all based on your ability
1. The Three Major Illusions of Newbies, which ones do you have?
"This wave must rise" (resulting in buying at the highest point)
"It's dropped so much, it should rebound" (resulting in buying halfway down)
"Hold it for a while longer, the profit will be bigger" (resulting in market reversal and profit going to zero)
The Truth:
The market specializes in treating various forms of disobedience; you think you are bottom-fishing, but you are actually picking up the pieces
2. Why are veterans all waiting?
Chives: When they see volatility, they want to act, fearing they will miss the "get rich opportunity"
Veterans: Most of the time, they watch the show; when they act, it's a certain opportunity
Difference:
Chives may make ten trades but still lose once
Veterans may lose ten times but rely on one reversal
3. Remember these three points to avoid two years of detours
1. The market is waited for, not chased (missing out is not scary; making a mistake is fatal)
2. The trend is your only friend (don’t short in an uptrend, don’t long in a downtrend)
3. Preserving capital is more important than making money (if the principal is gone, no opportunity is related to you)
Let me ask you a question:
If you liquidate your position now, are you making a profit or a loss? The answer is your true level