2. Why is it difficult to "Buy/Sell what coin"?
* Bias & Herding Effect: We often tend to buy coins that are being heavily "pumped" on social media (Twitter, Telegram, TikTok) without actually researching the project's fundamentals, buying based on rumors, or following others' "tips." The decision of "what coin to buy" is not based on analysis but on emotions and the hope to "x10, x100 our accounts."
• The enormous number of coins currently makes it a one in a million chance to choose the right coin that will increase in value multiple times.
3. Why is it difficult to "Buy/Sell how much"?
This is the management of capital and risk, and it is where emotions wreak the most havoc.
* Greed: When we feel "this trade is definitely a win," we will go all in (or nearly all in), ignoring all risk management rules. A losing trade can wipe out an entire account or the effort of many previous winning trades.
* Fear & Blind Hope: When a position starts to lose, instead of cutting losses (stop-loss) as planned, we tend to "hold on to losses" and hope the price will turn around. The fear of admitting we were wrong and realizing the loss causes us to hold the position until it results in irreparable damage.
The crypto market is a battle not against others, but a battle with oneself. The simplicity of the above 3 steps is just the "tip of the iceberg." The "underwater part" is the ability to control emotions, maintain steel discipline, and adhere to the established plan, despite the market's wild fluctuations. The vast majority fail because we lose in this psychological battle.