In this round of the market, not making money may not be due to your lack of ability, but rather that the market structure has changed.
Many newcomers have similar experiences: the index rises, the market is lively, but you feel like being placed on a chopping board, being 'butchered' back and forth, increasingly losing money with every operation, and even confusingly becoming someone else's 'tool' for earning rebates and paying fees.
Here are a few key insights about this round of the market:
First, don't dwell on the fantasies of the last bull market.
In the last round, some people changed their fate against the odds with a one-sided market, but this round is different. Although there is a trend, it is accompanied by high-frequency fluctuations and repeated wash trading. If you still fantasize about soaring to great heights, you are likely to get stuck halfway up the mountain and be harvested repeatedly.
Second, the primary task for beginners is not to make money, but to learn not to lose.
Some people, relying on luck, experience initial success and mistakenly believe it is due to their strength, leading to bigger and bigger bets. What you should really do is protect your principal: do not over-invest, do not go all in, do not use high leverage, and do not act at emotional peaks. Being able to control drawdowns is the qualification for making a profit.
Third, do not touch cryptocurrencies you don't understand.
The biggest risk in the crypto space is insufficient understanding. If you don't understand the reasons for a cryptocurrency's price increase, who the buyers are, or how the logic and ecosystem work, the money you invest is like throwing a stone into water. When your understanding is limited, it is wise to stay close to the mainstream.
Fourth, do not chase hotspots.
This round of the market rotates extremely quickly. By the time you see the whole network discussing a particular sector, the main forces are often already preparing to exit. A prudent approach for newcomers is to hold mainstream coins as a base and participate in altcoins with small positions.
Fifth, if you want to survive, you must pay attention to overseas developments.
In this round, domestic news lags behind. The real pace is set overseas, where policies and institutional actions happen first in Europe, America, Japan, and South Korea. For example, the news about the successful testing of the Ethereum Prague upgrade was released by overseas developers on Discord immediately, causing ETH to rise rapidly. By the time the news comes out domestically, the first wave of the market has already ended.
In this round of the market, what is being tested is understanding, rhythm, and survival ability. Only those who survive until the end can share in the benefits of the bull market.
