99% of retail investors in the cryptocurrency market make the same mistake:
Following the trend + unable to hold, going against the trend + stubbornly holding $BTC
Many people believe in “taking profits when you can,” but forget that unless you completely exit the market, this mentality is essentially betting on the low-probability event of “selling at the highest point and buying at the lowest point.”
The reality is often that after making a small profit, they exit the market, missing out on subsequent doubling opportunities; while newcomers in futures trading are even more obsessed with intraday trading, fantasizing that “if they lack money, they can come to the market to make a profit,” but they do not understand that the true wealth code is hidden in long-term trends.
What’s even more fatal is that when making mistakes, they stubbornly hold and average down, turning small losses into big losses. The gambler’s theory of losing everything is still about equal gains and losses, but this operation of “limited profits, unlimited losses” will inevitably wipe out the principal over time.
To break the deadlock, the core is to establish a scientific trading system, with two key points: stop-loss and take-profit.
Most books on the market that teach “fixed point stop-loss” are fundamentally wrong! The real core of stop-loss is the support level (the resistance level corresponding to short selling), and you stop-loss when it breaks, rather than stubbornly holding to a fixed loss.
Positioning should also revolve around the stop-loss point:
The further away from the support level, the lighter the position, to the state of “wanting to average down when it falls, and not regretting when it rises,” using hedging thinking to stabilize the mentality, this is the essence of position management.
Take-profit is even simpler:
Rarely take profits actively, and after reducing positions, one can fade away from attention. The purpose of all operations is to improve the holding tolerance rate and reduce costs, while the position itself is the core. The true financial freedom in the cryptocurrency market has never depended on intraday trading, but rather on riding a great wave—holding long-term to realize profits.
The inability to hold long-term is rooted in the cognitive bias towards profits: always staring at the fluctuations of account floating profits, taking the apparent profits seriously, and naturally being easily influenced by short-term ups and downs.
Abandon short-sighted thinking, use stop-loss at support levels, maintain a light hedging mindset, and hold long-term to earn big waves; this is the core logic of making money in the cryptocurrency market. @juice13
