2023.11.20
1.6 The most important thing in investment is not to lose money
Is this nonsense? Yes and no. Oops, I seem to have said nonsense again.
How to avoid losing money? No loss is an investment strategy suitable for ordinary people, that is, bronze and silver players. The market cycle of the currency circle has the distinctive characteristics of bullish short and bearish long. As long as you don’t lose all your money, you will be able to wait for the silver and bronze games sooner or later. Wait until the silver and bronze games appear and then work hard. This is the way suitable for most ordinary people to get rich in this market. If you insist on taking the opposite approach, hahahaha, then when you are liquidated, I will build a leek hero monument for you.
Many bronze and silver players who are new to the market, after experiencing a short-term market roller coaster and losing their principal, are easily kidnapped by a blind return of capital mentality and sink deeper and deeper. This kind of blind repayment mentality is that after a significant loss of principal occurs, the mentality refuses to admit defeat, ignores the objective market difficulty and personal level, and firmly believes that if I lose in this market, I must earn it back here. Go again. According to the market difficulty grading theory mentioned in the previous chapter, bronze and silver players can theoretically only make stable profits in the bronze and silver games. In other difficult markets, they can make small profits based on luck or lose big money based on their strength.
Many people still come into contact with contracts after significant losses in principal. In the financial market, leverage is a gift from the devil, and many famous tycoons have died here. Due to human nature, New Leek will be more likely to adopt the wrong practices of ultra-high leverage, brainless rollover, martingale, holding orders, or failure to scientifically limit profits and losses. Floating losses after leverage expansion can easily turn into luck and self-destruction. Leave this market with every last penny left. When coming into contact with financial leverage, you must always remember to ask for the upper part to get the lower part, and ask for the lower part to get the lower part. There are many talented and hard-working professional players in the market, and the success of this group of people cannot be copied by ordinary people. The more ordinary people want to capture every band with high leverage, the more dangerous it becomes.
Why can’t you make a big loss? The difficulty of recovering your investment will increase exponentially after a big loss.
If you lose 20% and still have 80% of your capital, you have to earn 25% of this 80% to get back your investment. If you lose 50%, you have to double your investment to 100% to get back your investment. If you lose 80%, you have to make five times your investment to get back your investment. Generally, it is impossible to get back your investment by this time. If you really have the ability to make five times your investment, you will not lose 80%. After losing 80%, you tell me that you can make five times your investment with the remaining 20%. I don’t believe it.
It is difficult for players who have little capital left to withdraw their money and their mentality has long been transformed into gambling. There is no hope of recovering the little capital left, and the general outcome is to increase leverage and gamble away all the money.
Therefore, bronze and silver players should think more, act less, observe more, and wait patiently for the bronze and silver games that belong to you. For this reason, it is important for bronze and silver players to have a full-time job or a rich spare time. If you have nothing else to do in a day, except for chatting in the group and staring at the K-line, and you are anxious to make money, it is really hard to resist.
Therefore, the market difficulty classification theory is of great help to bronze and silver players. As long as you can respect and love your own capital, look at your own abilities objectively, and adopt a scientific investment method, you may find the simple truth revealed in the tortoise and the hare race when you review your own and your friends' investment experience in a few years.
Some people may argue that you are making it sound easy, and that you can just work hard in the bronze league. But how can you know that you are in the bronze league? You are such a KOL, you are just talking nonsense.
If you recall carefully, you can easily recognize that the market was in the bronze stage in 2017 and 2021. The characteristics of the bronze stage are very obvious. No matter which spot contract is the mainstream, you can make money by chasing high and going long in any way, as long as you don't use ultra-high leverage to commit suicide.
The market in 2022 does not have any similar characteristics to the bronze market mentioned above. It is obvious that there is a sharp drop, a new low, a long shock, a small rebound to deceive you into getting on the train, a sharp rise and a slow fall, one step forward and three steps back. Although Bitcoin has risen a lot in Q1-3 of 2023, it is difficult for others to make money except for those who want to hold the spot, especially contract players. After grinding for one or two months, there were dozens of false breakthroughs, and finally one was real. The market was pulled in half an hour, and it took another one or two months. This is obviously not a bronze and silver market that makes it easy for ordinary people to make money. Whether you are watching or experiencing it, you can feel that this market is a super difficult king market. Taking a step back, don’t you know whether you have made money or not? You can cheat your brothers, but don’t cheat yourself.
So Bronze and King of Glory are easy to identify. It's not Bronze and King of Glory that are hard to identify. You think Bronze is hard to identify because you insist on looking for Bronze in King of Glory and Platinum. You don't want to wait, you don't have patience, you are unwilling to give up, you insist on looking for something that obviously doesn't exist, how can it not be hard?