When you trade, are you always trading emotionally?
For instance, if someone thinks a coin is trash, they won’t consider investing in it
I think a true investment expert does not just look at whether one coin is trash, but whether one coin is worth investing in
That is to say, we need to see if the return-to-risk ratio of this coin is high enough
If it’s relatively high, then it’s worth investing
For example, many people think DOT is trash and believe it is a stablecoin
But the price of this coin is only 3.8 now, with a bottom price of 3.0
Even if it drops to 2 later, you only lose 1.8 on one coin
But later this coin might rise to 8 or even 10+
Assuming we buy DOT at 3.8, the most it can drop to is 2, and if it rises, it could potentially go up to 8
So we could at most lose 1.8 on one coin, but we could potentially earn 4.2 on one coin
The return-to-risk ratio is about 4.2 ÷ 1.8 = roughly 2.3 times
That is to say, by taking on 1 unit of risk, you might gain 2.3 units of return
In that case, this risk is worth taking
Of course, DOT is just an example; other coins can also be considered if the price is right
This is a personal opinion, for discussion only; trading ultimately belongs to oneself, so gains and losses are one's own responsibility 😄
