The mentality of encryption investment is very important! How to avoid unnecessary worries and make the right decisions?

The fear of "this is the last cycle" + the uncertainty of how long the good times can last + the social pressure from others performing better. These three make up a deadly combination that has ruined the decision-making ability of many people.

Possible consequences:

Attention diversion: blindly chasing every hot trend and ignoring the necessity of focusing on key transactions.

Pessimism and hesitation: losing confidence due to uncertainty, leading to the inability to hold any assets for the long term, or even to participate in the market at all.

Lack of faith: Without in-depth research on the project, it is difficult to establish enough confidence to deal with market fluctuations.

Lack of profit strategy: fearing the end of the market, eager to clear the warehouse when Bitcoin slightly retraces, missing out on greater profit potential.

Response suggestions:

Focus on key industries:

Focus on specific industries or hot narratives within one or two chains. Please provide the source text to be translated. Clear choice: focus on on-chain trading or second-level trading, focus on one direction.

If you think you can engage in all industries at the same time, you are just deceiving yourself. Concentrate your resources and energy, focus on the industries that are most in line with current market conditions and can bring the highest return on investment. Combine your capital size, advantages, and market environment to find the direction and strategy that best suits you.

Clearly state your operating method:

Understand whether you are investing, trading, or speculating. There are essential differences among the three, so do not confuse them.

A simple judgment framework can help you distinguish between these methods and develop corresponding strategies.

Stick to your plan:

Develop a clear action plan, including the following elements:

Market Cap Range: Determine the market cap range in which you will enter the market.

Profit-taking plan: Establish rules for profit-taking in batches instead of liquidating completely all at once out of fear.

Target estimation: Set the target price that assets may reach, as well as the time frame for achieving the target.

Stop-loss conditions: Determine when to partially or completely stop-loss, which can be based on changes in fundamentals or technical aspects, and can also adjust strategies due to changes in the overall economic environment (such as upcoming important data releases). For example, in an uncertain overall economic environment, it is appropriate to take profits and wait for re-entry at lower prices.

Know Yourself: Please provide the source text to be translated. Identify your weaknesses: Do you lack experience? Are your technical abilities insufficient? Do you have a psychological bias towards excessive optimism or pessimism? Are there problems with improper financial management or lack of time?

If you find yourself having more weaknesses in these areas than others, it is better to give up the competition in this industry. Choose the direction where you have advantages and focus on the industry you are best at.

Continuous improvement

After each transaction, it is important to reflect on what actions were successful and what actions were failures, and why. Was the problem with the process or the decision-making, or was the decision itself reasonable but the result was unsatisfactory?

Your goal is to continuously reduce errors in operations, gradually improve winning rate through accumulated experience, and appropriately increase position when hit rate is higher.

If you ignore this process, you are likely to get stuck in long-term repetitive entanglement, which makes it difficult to make real progress, whether in psychological or performance terms.

Don't fight alone

In the market, reliable partners are essential. They not only hold you accountable for your actions but also help you make up for your shortcomings.

True trading opportunities often come from mutual support within the team - you make up for their shortcomings, and they help you improve yourself.

Quality is better than quantity: The number of partners is not the more the better. What you need are high accuracy, trustworthy traders who are on par with, or even better than you in the industries you are interested in.

Broaden your horizons: Establish a small circle that is different from your main industry, where these people can provide you with important information about overall economic trends, market cycles, and other important information beyond your direct focus. These insights will ultimately feed into your overall market awareness and help you better formulate strategies.

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are applicable to their specific circumstances. Investment is at your own risk.

This article is authorized to be reproduced from: "Shenzhen TechFlow"

Original author: Game

The right attitude towards crypto investment is crucial! How to avoid unnecessary worries and make the right decisions? This article was first published on 'Crypto City'.