When the trend reverses or changes, it is really necessary to decisively close all positions on old assets. We often have a strong tolerance for losses, but our tolerance for profits is relatively small.

For example, if a coin drops by 50%, you might hold on to it, but if it rises by 100%, you would sell. In fact, these two actions are opposite sides of the same coin because a 50% drop requires a 100% rise to break even, while a 100% rise only needs a 50% pullback to reach the cost line.

This is the weakness of human nature, which is why Buddhism refers to the Saha world as the world of endurance.

So recently when I trade cryptocurrencies, I always use the 15-minute candlestick, 1-hour candlestick, and 4-hour candlestick for GPT analysis to reference my own decisions. It provides stop-loss lines, resistance levels, and breakout points, which I find very helpful, using tools to add rational data analysis to my trading and overcome the weaknesses of human nature.

#人性 trading #strategy