Recently, the backend received a bunch of private messages, all retail investors asking, 'Why am I still losing money even though I followed the news?' To be honest, it's not that the news is inaccurate; it's that you fell into the 'three major pitfalls' of cryptocurrency trading! As a seasoned analyst, today I will reveal the bottom line to help you avoid these financial traps!
The first pitfall: treating 'news' as 'holy orders.' As soon as the Federal Reserve releases a signal for monetary easing, everyone goes all in; when Japan raises interest rates, they panic sell, completely driven by market sentiment. Key reminder: news should be viewed in conjunction with the 'time window.' After a signal for monetary easing is released, the market typically oscillates for at least a month; rushing in will likely result in losses.
The second pitfall: Ignoring the 'funds diversion effect'. After Japan's interest rate hike, some traditional funds will flow back to banks, and the crypto market will lack funds in the short term. At this time, chasing high prices of small cryptocurrencies will likely lead to being 'killed in silence'. My opinion: Prioritize holding mainstream coins in the short term, and touch small coins after funds flow back.
The third pitfall: Not setting 'stop-loss and take-profit' levels. Regardless of whether the market rises or falls, actions are based on feelings; if profits are made, one doesn't want to exit, and if losses occur, one stubbornly holds. Practical advice: Set stop-loss levels before entering the market (recommended 8%-10%), and take-profit levels in three tiers (15%, 30%, 50%), sell when the target is hit, and don't be greedy!
Want to know more practical tips in the crypto space? Follow me! Next week, I will host a live broadcast to share my 'stop-loss and take-profit setting template' for free with fans and will answer your holding questions on-site. Comment 'avoid pitfalls' to get priority live broadcast reminders! If you currently feel helpless and confused in trading, want to learn more about the crypto world, and get cutting-edge information, follow me@标哥说币 #巨鲸动向 $BTC
