Investment Thinking Pitfalls

It's the weekend again, have a great weekend!
Today, let's not talk about candlestick charts or technicals, but rather discuss the investment mindsets that can cause you to repeatedly lose money in the crypto space. Too many people suffer losses without understanding why, and the root cause is often not the technology, but rather cognitive biases. These not only consume your principal but more importantly, undermine your confidence.

Chasing gains and cutting losses, mistaking the market for a casino.
Seeing a surge can get your blood boiling, fearing you might miss the wealth train? As a result, when you enter the market, you end up standing guard, panicking and cutting losses when prices drop, perfectly practicing "buy high, sell low." Therefore, you must learn to control your emotions; the market is especially adept at dealing with all kinds of defiance. The more your emotions run high, the happier the market makers are.

Fear of missing out, treating messages as imperial edicts.
Seeing others post their gains and how many times they made profits makes you pound your chest in frustration, to the point where you can't even eat. This makes it easy for you to go all in when you see the insider info on community hundredfold coins, and in the end, you lose everything. Investing is not a race; being a step behind won't kill you, but stepping on a landmine will.

Blindly following trends, everyone is playing this game because everyone else is playing it. I will join in too, surely everyone's judgment is correct. Little do they know, as the saying goes, the truth often lies with a minority. In the cryptocurrency world, those who truly make money are also in the minority, and the hotter the coin, the more one should be aware of the risks.

I thought that as long as you can hold it, it is value investment.
Holding long ≠ holding recklessly. Clinging to worthless coins and pretending to be dead will not bring a bull market, but rather a zero return. True value investing only applies to top assets with consensus and ecology. Long-term investment in small coins is no better than rolling dice in a casino.

Mystical confidence, treating luck as strength.
Money earned by sheer luck will eventually be lost through one's own ability. In a bull market, everyone is a stock god, but only when the tide goes out do we see who is swimming naked. Reviewing trading records every day, admitting mistakes is harder than pretending to be right.

Afraid to chase when it rises, afraid to sell when it falls.
"This coin has increased tenfold, it must be expensive!" "It has dropped 80%, time to buy the dip!" - Price anchoring is a human instinct. However, the price of a coin is not related to its highs and lows, but only to its valuation.

Positioning mindset, the bottom determines the brain.
After heavily investing in a certain coin, you will frantically search for its positive news while ignoring the negative. This psychological phenomenon is called confirmation bias, commonly known as self-deception.

Mental accounting, the cost price is a psychological demon.
My cost price was 50,000, now it's 30,000. Cutting losses is too painful. Remember, the cost price is a thing of the past and has nothing to do with future trends. Don't let past mistakes bind your future decisions.

Sunk cost, cutting losses is less painful than severing a limb.
Holding onto losing coins while unable to keep the profitable ones, human nature despises losses, yet the market shows no mercy to tears. What has been lost is already a sunk cost; continuing to increase positions will only amplify mistakes. Timely stop-losses are essential to free up capital to aim for the next opportunity.

Follow the experts, listen for news
Opportunities in the cryptocurrency world rely on gathering information, identifying truly quality projects, and continuous learning. Ultimately, I sincerely tell you that making money still depends on yourself; no matter how skilled someone is, they cannot hold your hand and teach you how to operate.

The crypto space is not short of opportunities, but it also serves as a cure for all kinds of discontent. Beginners, in particular, need to be wary of the trap of easy wealth. The essence of investment is the monetization of knowledge—your level of thinking determines the ceiling of your account balance. Stay clear-headed and don't let your mind become your biggest enemy.

#投资思维 #交易心理学  #币圈误区 #加密货币投资