How difficult is it to identify a heavy position?

luojinglumao8@newsletter.paragraph.com (luojinglumao8) — Thu, 12 Dec 2024 01:16:59 GMT

In fact, I admire people who are betting on heavy positions. Spotting heavy positions has always been a weakness of mine.

To identify the heavy positions, you must first identify them accurately, so this set of investment methods is only suitable for experienced investors. You score clearly which narratives are phenomenal and which are small chances.

Secondly, there must be a choice, don't pick up the sesame seeds and lose the watermelon. You cannot rush every opportunity, because most opportunities are traps and are unsustainable. People who frequently take action are destined to lose 99% of their transactions. This is actually chronic suicide.

People who are used to rushing for small opportunities often restrain themselves and dare not take a heavy position when a truly phenomenal narrative comes, even if you know in your heart that this is a phenomenal opportunity. Because you make frequent moves, make habitual losses, and consume the few funds you have, you no longer believe in your investment system. You will subconsciously think that if you have a heavy position, you will lose money, and if you have a light position, the price will skyrocket. Frequent moves, especially in response to memes, are mental opium and will cause your funds to die slowly.

In the end, you really need to have faith in your own investment system to identify the big positions. Investment is ergodic, or it is called the source of profit and loss. If there is no good investment system, it will be easy to make and lose money. It is very common for some people to make money on the leading position and rush to the second and third positions of the dragon, and soon they will lose all their funds.

To sum up, to borrow a sentence from someone else, the reasons why most people lose money are simply the following:

If you want to make a comeback with one coin, make a big bet
Don’t do research. Just wait for others to feed you. After feeding, it’s too late and you end up losing money.
Having too much faith in a coin and not doubling the capital will lead to zero.
After selling, you are bullish and then chase it back, and end up losing money.
There is no clear buying and selling plan or it is not strictly implemented.

90% of people who play local dogs make the above mistakes and lose money. How many of them did you win?