Chainfeeds Summary:
The Altcoin market bull run is always full of temptation and risk. When prices soar, many investors are prone to emotional decision-making, leading to losses. The following are the top 10 common mistakes that may cost you money in this Altcoin season, and how to avoid these traps.
Source:
https://x.com/BTC_Chopsticks/status/1869701608646599163
Author:
BTC_Chopstick
Viewpoint:
BTC_Chopstick: Not setting clear profit targets: When the market is rising, it's easy to be obsessed with the idea of "just a little more", ultimately losing the realized gains when the market reverses. How to avoid: Set clear profit targets for each investment. Take profits in stages and lock in realistic returns. Chasing hype without a plan: The appeal of hot projects is hard to resist, but buying at high prices often leads to losses when the hype fades. How to avoid: Have a clear investment rationale before entering the market. Avoid impulsive trades driven by FOMO (fear of missing out). Neglecting risk management: During a bull market, investors often become overconfident, making full cross margin investments or leveraged trades, even holding high-risk single assets, which can lead to devastating losses. How to avoid: Diversify your portfolio, allocate some funds to stablecoins and other low-risk assets. Set stop-loss orders to reduce the potential risk of a single investment. Lacking patience and exiting too early: Some investments require time to realize their value, but a lack of patience may cause you to sell before the big rally. How to avoid: Trust your research, reduce the time spent constantly checking the market. Give your investments time to mature and let the market work. Overly complex trading strategies: Too many technical indicators and analyses can lead to hesitation and missed opportunities. How to avoid: Simplify your trading strategy, rely on just a few key signals. Keep your operations clear and concise, don't get bogged down by over-analysis. Excessive trading leading to eroded returns: Frequent trading not only increases transaction fees, but also tends to trigger emotional decision-making, leading to more mistakes. How to avoid: Reduce your trading frequency, focus on a few high-conviction trading opportunities. Let your investments grow, don't rush to profit every day.
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