Be wary of the "myth of getting rich" in skyrocketing market
When every round of market quotations comes, there are always some happy and some sad: some people missed the hot projects that skyrocketed in the market due to one or another reason, and some people caught the dark horse due to various chances and coincidences to achieve a skyrocketing wealth.
Among the various stories about wealth soaring, I think there is one that all investors, especially those who have just entered the market, should be extremely cautious, such as the following example:
There is a novice investor who entered the currency circle by borrowing 500,000 yuan in May. Later, after reading the investment research and analysis of NXM by relevant media, he entered with a full position and earned 3,000 ETH. Now he has earned more than 2 million with a full position in Polkadot .
Some people think that "you are not afraid of losing money, so you can earn more and you will have money." I think such cases should not only be envied but should be highly vigilant.
In the articles I have written in the past, I have shared with you many stories worthy of our reflection. Almost all of these stories start beautifully and end tragically. As soon as the novice investors in these stories entered the market, their initial operations were almost as if they were helped by gods, and they would earn whatever they bought. But from a certain day on, the good luck was gone forever, and the teeth would be stuck in the water. In the end, I complied with the sentence "The money earned by luck is lost by strength".
In the above case, the novice investor's operation was almost fatal:
The initial capital of 500,000 he entered the currency circle was obtained by borrowing from the bank. This was the first big thunder.
In any case, I do not recommend that investors borrow money to invest or borrow money to buy coins. Even if you are buying Bitcoin or Ethereum, don’t borrow money to buy it. Any investment is risky. As long as you borrow money, it means that the investor’s financial strength is insufficient and exceeds his ability. Borrowing money to invest is gambling. Winning or losing in the casino is only related to luck. Discussions related to luck are not our topic of discussion, it is decided by God.
He entered NXM with a full position, and later entered Polkadot with a full position. This is the second big thunder.
Under any circumstances, I do not recommend that investors take a full position in any currency, including Bitcoin and Ethereum. I suggest that assets should be allocated in different varieties, and you cannot bet on one variety. Any investment product has risks, let alone a high-risk investment product such as digital currency, its risk exceeds almost all traditional investment products, and we can't use the method of full warehouse stud.
"Don't be afraid of losing money, so you can earn more, you will have money", this is a typical misleading statement, and it is the third thunder.
I agree that we should "not be afraid of losses" and even dare to "take losses" in some cases in the process of investment. For example, since 2019, I have always suggested that everyone’s Bitcoin should be below 10,000 US dollars, and Ethereum’s fixed investment should be below 400 US dollars. Don’t care about price fluctuations. Falling, firmly hold and not sell.
But there are prerequisites: first, in a bear market, second, against mainstream currencies, and third, the price must be low enough.
Obviously, these three conditions are completely untenable in this investor's case at the moment.
First of all, the current market cannot be considered a bear market, which is almost the consensus of most participants.
Second, no matter from which point of view NXM and Polkadot are not considered mainstream currencies, they have not yet experienced several rounds of bear market baptism and tempering, and have not yet formed a broad consensus.
Third, their prices are not low. As two emerging currencies, they have only been online for a few months, and the price has risen to such a high position, which is quite risky no matter how you look at it.
Therefore, no matter from which angle you look at it, you cannot use the attitude of "not afraid of losing money" to operate these two coins. "Don't be cowardly, just do it" can be used as a daily joke, but taking real money to take risks may lead to no return.
At present, it seems that the investor's operation is very smooth, but if he continues to play in this way, the consequences can be expected now.
Many people will attribute the reason for making money during the rising market to their strong analytical ability and high ability to analyze projects. In fact, in many cases, such investors just make money based on trends, rather than relying on Ability to make money.
