First, there is no patience. Bitcoin has a cycle of 4 years, but I have seen too many people who have only entered the market for 4 days and are complaining about why their coins have not risen. I know that we all stepped into the market because we saw the characteristics of cryptocurrencies that can bring high returns in a shorter period of time. After all, the pace is indeed fast, but it is not fast in one or two days. Take the K-line chart as an example. Stock market investors look at monthly or even quarterly lines, while B-circle investors mostly look at daily lines. 4 hours, one hour is short enough. If you find yourself always staring at the 5-minute line or even the 1-minute line when you are looking at the market, is it possible that you are too anxious? When we say that we should buy Bitcoin at low prices, we are not talking about catching the lows of one or two days, weeks, or even months. That is too difficult for most investors. But if you extend the time to 1 year, 2 years, 5 years, or even 10 years, there is a great chance. Now, entering the market with 20,000, 25,000, or 15,000 is basically the same cheap concept. Just like TSMC's stock, no one cares whether you buy it at 50 or 60 yuan, because today, it's all super early. Just like Buffett said, if you are limited to making only 7 investment decisions in your life, you will become very rich, because you will become very patient to choose your investment, which is even more important in the cryptocurrency world where hundreds of millions of dollars are invested every day. You have to know that patience is exactly the trait that we young people lack the most. You have to know that it is much more difficult to catch short-term ups and downs than to judge long-term trends.

Second, they like to chase highs and sell lows. The most famous term in market psychology is formal fear of missing out. How many people rushed to buy Dogecoin when it rose to $0.7, and how many people shouted to see $100,000 when Bitcoin was 69,000. Not to mention that the crazy NFTs at that time created billionaires now. Everyone knows that the price of coins will always reverse when the market sentiment is overheated. Everyone usually talks about a good attitude, following the trend, and being more formal. Whenever a coin soars several times in a few days, everyone's topic will become what good news it has recently, and it should be possible to enter the market during this period. For retail investors like us, when we hear whether it is good news, it will be the turn of the community formal mentality. Do we really rely on experience and our own research? For novice players, it is recommended to watch and listen more, enter the market in batches, and establish the investment concept of averaging cost method and grid-based low-buy-high-sell position building. After all, apart from all packaging, the only principle to make a profit in the financial market is to buy when the asset is cheap and sell when it is expensive, there is nothing else.

Third, hold the wrong currency for a long time. The most popular investment philosophy in cryptocurrency is buy and hold, which means long-term holding. However, this strategy, which is only applicable to a few mainstream currencies, is often copied by various small coins. Of course we are optimistic about the development of blockchain technology in the long term, but to be honest, there are currently more than 20,000 cryptocurrencies on the market. How many of them do you think will continue to exist in 10 years? Probably less than 10%. Furthermore, those cryptocurrencies that are said to be among the top 100 currencies and can become mainstream blue chips, based on historical experience, are mostly bull markets. When the market is hot, they can become a temporary success. When the market cools down, even if they are called blue chips, they may not be able to maintain their popularity. Price community popularity, and even the value behind miners’ operations. Look at EOS, which is known as the killer of Ethereum in 2017, Bitcoin which is known as better, the so-called Bitcoin Cash BCH and BSV. At that time, the supporters of these projects were still active, but the advantages and disadvantages between them and Bitcoin and Ethereum now seem to be incomparable, and the current coins are not much better. The game by track is now suffering heavy casualties. Even the strongest stepn and axie Infinity have to face a 90% decline in the bear market. Defi or even defi 2.0. Countless NFT projects will rise in the bull market and will fall in the bear market. fall. It’s not that these tracks have no future, but even for excellent coins on high-quality tracks, the currency prices in the bull market may be too flooded by speculation. Luna, which once ranked among the top ten in market value, can directly return to the market within a few days. zero. Therefore, the coins that can be hodl held for a long time, for newcomers to the currency circle, are mainly Bitcoin BTC, Ethereum ETH, BMB, etc.

Fourth, do not strictly stop losses. The first lesson for a novice to learn trading is to establish stop loss habits and discipline. Stop loss means that when you buy a currency, of course you judge that it will rise, but if it falls, when does it fall, you have to admit your loss and exit, and strictly implement stop loss again and again. At first glance, You will still lose money every time, but in fact you are protecting your principal so that you can earn it back in the future. The opposite word of stop loss is concave order, which means that the market has clearly proven that you are in the wrong direction, but you are still following it. Many friends in the currency circle, some of whom are old players, still have such bad habits, such as buying and going long Bitcoin. Of course, they buy it only if they believe it will rise, and then tell themselves that if they are wrong, they will lose 10% at most and exit the market. . Suddenly I felt unconvinced. It was not for any reason. I clearly saw that I would not lose money, so it was 10%11% time to exit. We often hesitate at this time, you know? We think we can convince ourselves that maybe it will rise back up and we can just lose 20% of the stop loss. Sometimes you can make a comeback, but when you can't, 70% to 80% of your funds may be lost in one fell swoop. There is a very unfair rule on the balance of profit and loss. You can make 100% profit 10 times in a row, but you can lose 100% once, and all your previous profits will be in vain. As a result, will the market admit its mistake when cryptocurrencies fluctuate violently? Although it is heartbreaking, it is what the outstanding traders who survive do it every day.

Fifth, the leverage is too high. According to my observation, on average, friends who trade in the mainland currency circle open leverage at about 20 times. This is actually a very exaggerated number. Even people in stocks and futures may not be able to open such a high leverage. It is a fantasy to use leverage for cryptocurrencies with greater volatility. However, due to the prevailing order-posting culture of major necessary communities, we often see group members using 50 times leverage to quickly catch small rebounds, and using 120 times leverage to quickly catch small rebounds. Earn thousands of percent with leverage. When newbies come in, especially those who have no investment experience at all, I was an example back then. I thought that it was reasonable and common to open a leverage of more than 20 times for contract trading, but later I found out that this was really not possible. However, people are accustomed to reporting good news but not bad news, and there is also the so-called survivor bias. People who lose money by using leverage either quietly dive or exit the market with a loss. Newbies see people in the active cryptocurrency community always making money with leverage of more than 20 times, and it is easy to develop the bad habit of placing orders at high magnifications. And sooner or later, such a habit will make you hit the bottom quickly when your trading is not going well.

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