Author: BTC_Chopsticks
Compiled by: TechFlow
In a bull market, people often become greedy due to the rapid rise in the market, wanting to seize the "last big surge." However, once the market reverses, this impulse often causes you to lose the gains you have already obtained.
How to avoid these risks? Here are 10 common mistakes we have summarized, along with their corresponding solutions.
1. FOMO without a plan
When a hot project suddenly becomes popular, many people may impulsively buy in due to the fear of missing out (FOMO). However, after the price reaches its peak, the hype often quickly fades, causing investors to suffer losses.
How to avoid:
Before starting to invest, make sure you have a clear investment logic and goal.
Do not blindly follow the market sentiment, avoid impulsive trading.
2. Neglecting risk management
Overconfidence is a major pitfall in investing, as it may lead you to make reckless decisions, such as cross margin, using high leverage, or investing only in high-risk assets. These behaviors can expose your portfolio to great risk.
How to avoid:
Reasonably diversify your investments, allocate a portion of your funds to stablecoins or low-risk assets to balance the overall risk.
Set stop-loss orders (i.e., automatically sell when the asset price drops to a certain level) to reduce potential losses.
3. Lack of patience, premature exit
Some investors choose to sell when a project has not yet fully realized its potential, resulting in missing out on greater gains. This impatient behavior is often due to excessive focus on short-term market fluctuations.
How to avoid:
Believe in your own research and do not easily change your plan due to short-term fluctuations.
Reduce the time spent frequently checking the market, and give your investments more time to grow.
4. Overly complex strategy
Some investors like to rely on a large number of technical indicators or complex analysis tools, but these tools may cause you to hesitate and miss opportunities.
How to avoid:
Simplify your investment strategy, focus on a few key indicators, such as market trends and fundamental analysis.
Maintain clarity and decisiveness in your decision-making, do not be distracted by too much information.
5. Excessive trading erodes profits
Frequent trading not only incurs high transaction fees, but may also increase the probability of investment mistakes due to emotional decision-making.
How to avoid:
Reduce the number of trades, focus on investment opportunities that you are truly confident in.
Let your investments grow naturally, do not over-intervene, and avoid frequent operations due to short-term fluctuations.
6. Selling well-performing Altcoins to chase "potential" coins
Many investors make a common mistake in a bull market: selling the coins that are performing strongly, and then investing in some speculative "hidden gems," hoping to find the next big opportunity. However, this behavior often leads to a shrinkage of returns or even losses.
How to avoid:
Be patient with investments that are performing well, and let them continue to grow.
Do not easily abandon projects that have proven their value, and take risks chasing unproven new opportunities.
7. Overconfident in a bull market
In a bull market, the general market rise can easily make people mistakenly believe that their success is entirely due to their own abilities, while ignoring the element of luck. This overconfidence may lead you to make high-risk decisions, such as over-investing or increasing leverage, thereby increasing the possibility of losses.
How to avoid:
Maintain humility, recognize the unpredictability of the market, and do not be overly confident.
Control the size of your investments, avoid putting too much money into a single project to reduce risk.
8. Overly diversified investments
Trying to seize every opportunity may lead to your investment portfolio being too diversified, resulting in a lack of focus and diluted returns. Instead of pursuing quantity, it is better to focus on a few truly trustworthy projects.
How to avoid:
Focus your attention on 2-3 projects that you have researched in-depth and truly believe in.
Remember, quality is more important than quantity - a focused investment strategy with fewer but better-selected projects is often more successful.
9. Chasing the dream of "100x returns"
Many people in a bull market become obsessed with finding the next project that can bring "100x returns," but these projects often lack fundamental support and may ultimately lead to losses.
How to avoid:
Prioritize projects with strong fundamentals (such as technical capabilities, team background) and real-world application scenarios.
Be rational about the market, do not be misled by the illusion of windfall profits. Holding quality assets for the long term is often the key to achieving high returns.
10. Final Advice
To succeed in the Altcoin season, it is not only about seizing the market's upward opportunities, but more importantly, avoiding the mistakes that could lead to devastating losses.
Regardless of how the market fluctuates, maintaining discipline and executing a clear strategy is the key to victory. Focus on your goals and carefully make each investment decision. Good luck!
