Avoid Leek Thinking: 3 Tips for Investors

"If you lose in the competition, then you lose time; on the contrary, if you win, you will win in time."

Article introduction:

1. Have clear planning and strategies before investing

2. Don't try to guess the short-term market trend

3. Avoid leek thinking solutions

Yesterday, readers consulted, EOS bought at 58 yuan, it should have dropped to about 50 yuan at that time, worried about whether it will continue to fall, whether to throw away and wait until the price drop before entering. Today I want to share my thoughts on this issue in detail.

This mentality is a common mentality for investing in newcomers. Let's see what is the root cause of this mentality?

1. Have clear planning and strategies before investing

Look at the first question first: "Is it going to fall in the short term?"

Generally speaking, investors who are concerned about whether they are up or down after buying are mostly bought for the following two reasons:

The first is to hold the idea of ​​speculation in the heart, and want to make a short price in the short term;

Second, before buying, I don't know if the coin should be bought at this price, but because of external factors, he bought it. Therefore, once the currency price fluctuated or fell after buying, he began to be nervous. He was not sure whether the next step would rise or fall. If he worried that the price of the currency would fall, he would start to entangle it or not.

Whatever the reason, the root cause is that investors have no clear investment strategy and clear planning before entering the market, so once the market develops differently from what they expected, they will be at a loss.

For a mature investor, whether he is doing short-term or long-term, there will be clear planning before entering the market, and there will be no such entanglement.

If he makes a short-term, when he places an order, he will set a stop loss and a profit-taking position. It is not important whether the future price is high or low. As long as the stop loss or the profit level is reached, he will sell it. If you don't reach this price, you will continue to hold it.

If you are making a long-term investment, you will definitely set the appropriate bid price and selling price before he buys. He will not enter the market at all if he does not buy the price. Once he enters the market, he will only care if the price has risen to his selling price. If he does not arrive, he will not sell. As long as the price is still within his buying price, he will continue to vote. Therefore, the short-term ups and downs of the currency price after buying are not important to him.

2. Don't try to guess the short-term market trend

Let’s look at the second question: “Don’t wait until the price drops before entering the market?”

The question is: When you plan to sell, how do you know that it will fall after it is sold out? Even if it really falls, when will it fall? Are you really patient to wait until it falls? If it really falls, what are you going to wait for it to fall to buy?

When investors buy and sell for the first two reasons, they will be affected by market sentiment. The more volatile the market, the more you can't see the direction, the more you want to find a reason for your next investment behavior. So I began to take for granted the forecast market.

When the price of the currency begins to fall, it will fall and you can't help but want to sell the stop loss. When the price of the currency rises, it will rise and you can't help but want to continue to increase the position.

At this time, the behavior of investors is no longer rational and becomes driven by the market.

And in fact, in many cases, when an investor throws away the currency in his hand, and it really falls, the investor will panic more and feel that it will continue to fall, so it will not be bought back when the price is low. And when it is high in price, everyone will go after the pursuit of the wind to follow the high.

3. Avoid leek thinking solutions

To get rid of this mentality and situation completely, the fundamental solution is two things:

The first is to clarify strategies and develop clear plans before investing.

Second, do not be affected by the emotional impact of the market changes, no matter how the market changes after entering the market, as long as it is consistent with the previous plan, we must overcome the inner fear and greed and strictly enforce the plan.

For example, you need to formulate an operational strategy in advance, such as determining a 20% drop to sell a stop loss, a profit of 20% to sell a profit, and when you buy EOS at a price of 58 yuan, then 58 is down 20% is about 46 yuan. If the profit is 20% is about 70 yuan.

At this time, you have a number in your heart. The worst plan is to lose 20%. If you don't fall below this price, you don't have to worry about it. The profit is also the same, so there will be no fear or anxiety, because you know what you are.

Of course, the 20% of the examples here are based on the specific circumstances of each person. The 20% profit stop-loss stop loss is a short-term operation in digital currency investment. If the long-term investment may be calculated in multiples, this is also Investing in digital currencies is risky and has high returns.

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