Why do people still prefer to go long even when they know the scams will crash to zero?

This actually involves quite a few issues, not only statistics but also psychology and even other disciplines I don't even know about 🤣.

🌟 Going long earns more, going short earns less

Many people only remember one thing, which is that going long has unlimited profits and limited losses, while going short has limited profits and unlimited losses.

Remember that risk and profit are not proportional.

But they ignore the issue of win rates; the win rate for going short is much higher than for going long, especially in the crypto market, after all, most are useless.

🌟 Fear when seeing liquidation prices

Many people have unlimited margin but see the liquidation price for going long as 0, while the liquidation price for going short can be seen, making them very scared.

Whether it's a 1000% liquidation or a 5000% liquidation, there's always that thought: what if I get liquidated?

But going long doesn't have this feeling, there's a sense of “spot trading is not scary.”

🌟 Retail investors love to fantasize

Ever since Mr. X said that retail investors love to fantasize, this phrase has frequently appeared in various groups and has indeed become a famous quote.

Retail investors always fantasize about the arrival of these “scam seasons,” always expecting things to rise 10-100x, and then open a long position while adding leverage.

They always look forward to the challenge of turning $100 into $1000.

They only see the “unpredictable profits” and do not see everything on this road, such as that it is not a smooth curve, and various spikes, etc.

The inconsistency between fantasy and reality.

🌟 Human nature is overly optimistic, likes the feeling of “rising”

This is a real thing; every time there is a significant drop, everyone thinks it should start rising, or when it starts rising, everyone thinks it can rise even more.

Most people have this psychological state; only a small number of people feel that it is about to drop.

Especially with this current leader, who always manipulates the market with words, sometimes when everyone sees the US stock market rising, they can always convince themselves of the “need for a catch-up” feeling.

🌟 Always think this time is different, a sense of luck

This is the same for the vast majority of retail investors like me; every time we survive by luck, we think it's our ability, never realizing it's luck.

Every time we tell ourselves this time is different, brainwashing ourselves, but in reality, it is completely without any “theoretical basis.”

🌟 Believe in metaphysics, simple operation of following orders

Group friend Bob has repeatedly called for long positions on a pin, and every time a new decline starts, it's been 2 years, and I don't know the logic behind his boss hiring him. Now it’s clear, it's the opposite direction, and a huge opposite.

Before, group friends didn't believe it, but after following the contrary orders for 2 months, they have now believed it.

Going short doesn’t necessarily mean it will drop, but going long definitely leads to a drop; the metaphysical indicators have been winning.

There’s also the version of following orders and waiting, there are always people who want to see him get liquidated, but not only is the gambling nature strong, but his luck is also explosive, making profits alone. You always want to see someone get liquidated, but you don’t realize the starting point is wrong.

🌟 Give up fantasies, short on rebounds, open shorts on new coins, move towards success

More and more people are feeling the sense that this circle is a cesspool; no project can deceive a lot of money anymore unless it can really pump the price.

Now I'm curious about what will happen with new projects; they all launch and open shorts, and it’s been a long time since a project has launched with explosive short orders.

We can only expect either to suppress valuations to provide enough profit opportunities or for everyone to go play on-chain and US stocks, leaving exchanges completely cold.

🌟 Understand clearly what you want, do not over-fantasize

Wanting too much, wanting to obtain too much, wanting to get too many things easily.

Rome wasn’t built in a day; wealth doesn’t come to the impatient. If you think you can eat it all at once and become a big fat person, you have to be mentally prepared to choke.

No one can always be right; it can only be said that each transaction achieves you. Of course, some people become gods by going all in, but the extremely small number of survivors are insufficient to become the benchmark you think you are like.

🌟 Written at the end for myself and for everyone

Soros once said:

“The history of economics is a continuous drama based on illusions and lies. To gain wealth, the way is to recognize the illusions, invest in them, and then exit the game before the illusions are recognized by the public.”

So don’t be too “fascinated,” don’t believe anything anyone says, whether it’s the project party or KOLs, only believe in the “few” heartfelt friends, after all, in a group of three, there must be someone to teach me.

Be your own teacher, learn to summarize.