Why do ordinary people always lose money in the cryptocurrency circle? How can we successfully grasp the bull market in 2024?
Even if many people have been in the cryptocurrency circle for many years, they entered the market in 2017, 2019, and 2021. Logically speaking, they have a lot of experience. They have experienced many market conditions, but they are always frustrated. Maybe they have never experienced the feeling of making money and withdrawing cash, and have been chasing the road of returning their capital. This is a real problem I found in communicating with many people, and it is common. I will also ask the reason, why is this the case? There are many answers, such as:
1. I bought at a high price and saw that it rose well in the past few days, but it fell back as soon as I entered the market;
2. I sold too early and was trapped in the market, so I sold it, and it rose as soon as I sold it;
3. I saw the market fall again, so I thought it would fall sharply, so I sold my losses and left the market;
4. I always have bad luck and I was just one step away;
5. I didn’t know to set a stop loss and resisted the order;
6. I started to win a little, but I didn’t recognize the market trend. The market started to fall. In order to lower the average price, I kept adding to my position. Finally, I added to the floor and couldn’t stand it anymore. There are too many reasons for losing money.
But have you found a fatal problem? Most people who lose money don’t have one thing: a trading system. Many people regard trading as chasing prices, selling high and buying low, buying and selling. From the brain level, it belongs to single-line thinking, and there is no [systematic thinking].
Because the market is extremely complex, price fluctuations themselves have great uncertainty, and there are many factors, whether it is technical, news, or fundamentals, there will be certain deviations. How to recognize, view, and deal with this uncertainty deviation is the key to the success or failure of our transactions. Here you need to have a systematic thinking, and use the "trading system" to help yourself avoid uncertainty problems and regulate your trading behavior to avoid human nature and make mistakes.
A complete and mature trading system includes three major aspects: technology, mentality, and strategy. It also includes several small parts to solve layout problems, such as position management, capital allocation, stop profit, stop loss, how to buy with the least risk, and how to sell with the greatest profit. Technology, mentality, and strategy need to interact with each other, complement each other, and form a closed loop, so that we can understand 90% of the market and have the ability to seize opportunities with a 90% probability of success.It is very difficult for someone who has a complete trading system to lose money. Even if a layman has a complete trading system, he can still trade successfully and get results.
