What is the standard process for retail investors to lose money? See how many of these you've fallen for!
1. All in! You find a coin you like and without thinking, you put all your money in, afraid you'll miss the opportunity.
2. Obsessively watching the market! From then on, you stare at the market like a thief. It goes up a little? You're overjoyed, feeling great! It drops a little? Instantly deflated, it feels like a heavy stone is crushing your heart, making you miserable.
3. Panic selling! What if this coin keeps dropping? Oh no, the more you watch, the more anxious you become, your hand shakes, and you sell at a loss!
4. Slapping your thigh for chasing the high! Just after selling, hey! It rebounds, rising quickly! You regret it and slap your thigh, quickly jumping back in at a high price!
5. Second round of harvesting! You buy in again, and it drops! Furious, you jump in anger, even more anxious, great, time to sell again...
After a few rounds of this magical cycle:
Coin price: You might end up back at square one, or it hasn’t changed much at all.
Your money: Feels like being cut with a dull knife, your position gets thinner with each cut, and your principal keeps dwindling!
Got it? Frequent trading is like voluntarily paying a “protection fee” to the exchange, handing over the scythe that will cut you from the big players!
(Don't doubt it, I'm talking about you!)
