Most people lose money because of the following tactics: panicking at the bottom and cutting losses, going crazy chasing gains at the top.
When they see the coin drop a little, they panic, the numbers in their account cut through their hearts like a knife, and they immediately close their positions;
When they see the coin rise a little, they go wild, thinking "let's push it a bit more, doubling is no problem," but the more they chase, the higher it goes, and in the end, they get severely harvested by the market.
Making money has never depended on luck or on lucky trades.
To put it simply, there are three core elements:
First, don't go off direction.
When the trend is right, entering the market makes sense;
When the direction is wrong, no matter how many positions you open, you are just giving away your principal.
Experts look at market trends every day, not focusing on short-term fluctuations but on the larger trend, confirming the trend on the daily chart before taking action.
Second, hold your chips steady.
Whether in a bull market or a bear market, stabilizing your position is key to survival.
Most retail investors meet their demise here: greedily chasing gains, heavily leveraging their positions,
A wave of correction comes, and profits vanish, along with the principal.
Steady your chips, wait for the market to give you the low point, then slowly roll it up.
Third, keep your mindset steady.
Don’t get carried away by unrealized gains, and don’t panic over unrealized losses.
When the market rises, don’t impulsively increase your positions; when the market falls, don’t be soft-hearted and cut losses.
What the market fears most is not fluctuations, but you being bound by your emotions.
Those who can remain calm amidst volatility will see their account curves grow thicker and thicker.
