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In the current crypto assets market, what is most concerning is the blind optimism surrounding specific coins. Looking back, I have also fallen into a similar predicament: developing a strong preference for a certain coin, constantly increasing the position regardless of market trends, and even trying to persuade others to join in. However, it now seems that this is not a rational belief, but rather an obsession that is hard to shake off.
Why is it difficult to let go of a coin even when we know it is underperforming? Why do we remain committed to an investment that has stagnated during a hot sector? The reason often lies in our unwillingness to admit our decision-making mistakes, hoping to salvage the situation by waiting, only to end up trapped in a high position.
After years of experience, I gradually realized a key principle: the purpose of entering the market is to make a profit, not to establish emotional connections. Now, I always keep in mind a valuable saying: 'Long-term holding only chooses Bitcoin, short-term trading focuses on popular coins.' This strategy is simple and straightforward, yet extremely effective.
Specifically, I adhere to the following basic principles:
1. Long-term holding: Focus only on Bitcoin, as it is the only Crypto Asset with value across cycles. Other projects, even if they perform well during a bull market, may struggle to recover after a cycle.
2. Short-term trading: Focus only on popular coins with strong trends, high market sentiment, and in a rotation cycle. Even when facing the risk of FOMO (Fear of Missing Out), it is more promising than sticking to weak coins.
3. Avoid irrational behavior: do not fantasize about a rebound, do not indulge in so-called undervaluation, and do not view trapped funds as an opportunity for regular investment. These are emotional traps that are hard to escape from.
Many investors hold onto a certain coin not because they truly believe in its prospects, but because they are already deeply entrenched and unwilling to bear the pain of cutting losses, hoping instead for a miracle. However, what truly causes pain is not the loss itself, but the mindset of being unwilling to face the loss.
In trading, the biggest challenge is not technical analysis, but how to timely extricate oneself from erroneous decisions and re-establish objective judgment. If you have also fallen into such a position strategy based on obsession, why not start today by clearing away existing concepts and re-examining your investment logic. Remember, you are neither the project party nor a preacher; you are just a participant here to trade and make money.
By redefining our roles and objectives, we can better respond to market changes and make more rational investment decisions. This not only helps to improve investment returns but also allows us to maintain mental health in the volatile Crypto Assets market.