Family, I have seen the light today! BTC fell below 88000 USDT, with a 24-hour drop of only 0.11%. As a result, the entire network immediately entered a 'celebration mode'—some people in the community posted small essays saying 'goodbye to the bull market', others shared screenshots of their 'cutting losses and leaving the market', and some even changed their profile pictures to expressions of 'losing it'. What's even more ridiculous is that someone actually initiated a poll on a certain platform asking 'BTC fell below 88000, what should we do?' with participation exceeding 100,000. I really can't stop laughing; this 0.11% drop wouldn't even cause a ripple in the traditional stock market, yet in the crypto market, it has become the 'end of the world'? In today's article, I will summarize the bewildering behaviors of retail investors and, by the way, splash some cold water on everyone to view market fluctuations rationally.
The first confusing behavior: excessive panic, chasing highs and cutting losses. I find that many retail investors have a common problem, which is to frantically chase in when prices rise and desperately cut losses when prices fall. Take this recent incident where BTC broke below 88000 USDT; many people saw the price drop, didn't ask why, didn't check the data, and directly sold their holdings. As a result, after selling, the price quickly rebounded, and they missed out perfectly. I have a friend who saw BTC drop below 88000 yesterday morning and was panicking, selling at 87800, and by the afternoon BTC rebounded to 88200; he was hitting his thigh in regret. This behavior of chasing highs and cutting losses is one of the main reasons retail investors lose money. Everyone should remember, market fluctuations are normal; don't let short-term price changes throw you off balance.
The second confusing behavior: blindly following trends, believing everything you hear. Now many retail investors have no judgment of their own, relying entirely on others' opinions. When they see a prominent figure say, 'BTC will drop to 80000', they hurriedly sell; when they see a community say, 'It's time to buy the dip', they quickly buy in. Today, I saw someone in a community say, 'Institutions are unloading; BTC is going to crash', and immediately dozens of people below asked, 'Is it true? Should I sell?'. This kind of blind following behavior is very dangerous because you have no idea whether the information is true or false, and it's easy to be taken advantage of by those with ulterior motives. I advise everyone to make your own judgments in investing, not to easily believe what others say, and to learn to analyze the market yourself.
The third confusing behavior: excessive focus on short-term fluctuations while ignoring long-term value. Many retail investors stare at market software every day, wishing to check the price every minute; they get happy when prices rise and sad when they fall. This excessive focus on short-term fluctuations can trap you in emotional pitfalls and lead to irrational decisions. I know a seasoned crypto investor who never looks at daily charts, only weekly and monthly ones. He says, 'I invest in BTC because I believe in its long-term value, not to make a profit from short-term price differences.' It is precisely because he has this mindset that he can remain steady through multiple market fluctuations and ultimately achieve good returns. Everyone should understand that investing is a marathon, not a sprint; do not deny long-term value because of short-term fluctuations.
Next is the valuable information time: how to avoid becoming a 'confusing retail investor'? I have summarized three methods for everyone. The first method: establish your own trading system. A complete trading system should include buying logic, selling logic, stop-loss and take-profit strategies, etc. For example, your buying logic could be 'BTC drops to the institutional cost zone', and your selling logic could be 'BTC rises to the target price', with a stop-loss and take-profit strategy of 'stop-loss 5%, take-profit 10%'. With a trading system, you won't be thrown off balance by short-term price fluctuations. The second method: learn more and improve your professional skills. Investing is a process that requires continuous learning; you need to understand blockchain technology, the fundamentals of crypto assets, technical analysis methods, etc. Only by improving your professional skills can you make correct judgments. I suggest everyone read more books, pay attention to industry trends, and continuously enrich themselves. The third method: control your emotions well. Emotions are the enemy of investing; many people make wrong decisions due to emotional loss of control. When you feel panic or greed, stop first, take a deep breath, and don't rush to make a decision. You can step away from the market software, do something else, and come back to analyze once your emotions have stabilized.
In fact, this 0.11% drop in BTC is a great training opportunity for us; it allows us to see our own mindset and identify our problems. If we can't handle such a small fluctuation, what will we do when we face greater market risks in the future? Investing is not just about investing in assets, but also about investing in our mindset and abilities.
If you currently feel helpless and confused about trading, want to learn more about cryptocurrency and get firsthand cutting-edge information, follow me.
