Investment Lessons Learned: 4 Tips to Break Free from the "Chasing Highs and Selling Lows" Death Loop
1. Quick In and Out Trading: Don't talk about patterns, take profits quickly; short-term trading is most afraid of greed — those who say "I'll sell after making 10 points" often end up stuck at the peak. Remember the iron law: set a profit-taking point (like 5%-10%), and clear your position once reached; don't wait for a trend reversal. Recent hot spots rotate quickly; yesterday's leader could become today's laggard, and the money you’ve made is the real money.
2. Early Ambush Strategy: Once you identify a target, go in heavy; don’t play heartbeats trying to catch "high-impact" opportunities? The key is the timing of entry — layout when the project's white paper is just released, and community interest is beginning; don't wait until the media is buzzing. It's like buying Moutai in 2014, not in 2021. Once the logic is confirmed (like a technical breakthrough / favorable policy), decisively build your position and minimize watching the market to avoid being washed out by short-term fluctuations.
3. Mid-Term Operations: Don’t get involved in the "pass the flower" game when the target enters the second wave of the main rise (like the price has doubled); don’t believe the story that "XX can still rise 10 times". At this point, chip game dominance takes over, and K-line trends may diverge from the fundamentals; chasing highs is just handing over the shares to the big players. Recently, many people increased their positions before the plunge of XX coin, suffering from the loss of "second phase PVP".
4. Core Principle: Positioning is more important than entry points; remember the painful lesson: even if you spot a 10x bull stock, insufficient positioning is useless. It is recommended to diversify your strategy: 30% of funds to ambush early targets, 50% for mid-term swings, and 20% kept as cash. This way, you can seize explosive opportunities while avoiding the embarrassment of "having no chips when it rises, and holding a full hand of losses when it falls".
True experts don’t always buy at the lowest point; instead, they continuously make money within the right strategy.