Hi everybody!
Perhaps you guys, whether investing in stocks or crypto, are going through a turbulent time. If I were in any group, I believe there would be panic and negativity about the market right now.
This is always the general psychology when participating in the investment market:

  • When prices rise, there is optimism about a pink world, about green and purple accounts, about stories of becoming millionaires in a short time.
  • When the price drops, it is full of negativity, the market collapses, stocks and crypto are gambling, virtual, deleting the app... while just a few days ago they were the ones who had sky-high confidence in the above market.
    This is the common psychology of people who believe in something and will find every factor to support that thought. In addition, the media always releases news at the right time to bring people's psychology in the right direction of the market. Crowd mentality will always be like that…
    I hope we will not put ourselves in the majority. Because in the market, only a small part can be profitable in the long term.

Real-life experience will make you more mature

Before now, I have written quite a few articles about investing in Hoi Quan. The principles are very simple, but to do it for a long time is not simple.

Because you can comply for a whole year, but just one break can destroy the previous results achieved.
There are things that, even though they are repeated over and over, can only be remembered and deeply engraved when we actually experience them. Like children, even though adults tell them not to touch fire, they will get burned, but they will still touch it and get burned. Only when burned do you truly know how to fear and avoid it.
And let's act like children who continually learn and learn lessons. Mistakes and losses will not be bad if we learn and remember them for next time.
When I first joined the Crypto market, I was often jealous of those who made bigger profits in the market. Think they are lucky to know the right time when the market is rising, think they are lucky to have spare money to buy when the market is red.
Maybe there is a certain amount of luck in success, but I don't know that they themselves have gone through times of crisis, loss, and pain in the market before before achieving such results. Present.
Currently, when the market crashes, some people who know me who invest in Crypto ask about it and I answer that my mentality is still very comfortable even after the recent crash. Because I am still disciplined in capital and risk management, I can still be happy when the market drops because I will have the opportunity to buy more and accumulate at better prices.
It's all due to past losses and lessons, not something that comes naturally.

Nothing is certain, the only thing we can be sure of is our decision

In a few videos, as well as articles, I mentioned things like: "I don't know", "I think this, I think that" but did not say definitely this, definitely that.
Whether in any market, Forex, Stocks, Crypto,... or anything in life, I am "sure" that nothing is certain.
The story of Luna or even Bitcoin, or any stock, is not certain to last forever, so when investing, always clearly identify that the investment is risky and can cause loss or loss.
Therefore, I always remind about the rules of capital management, often divide eggs into many baskets, do not go all in, always keep a part of cash, take profits gradually,...
Even with Forex, many people new to the market may always expect results, things that bring truth or why there are cases that are not correct.

But everything is not completely binary, only right or wrong like the way we were taught in school.
The only thing you can be sure of is your own decision making. Deciding to enter an order or not? Deciding what to invest in? Deciding to stop or continue?,... is what you decide.
I think we should also abandon the bottom-fishing mindset because no one knows where the bottom is. Today's bottom could be tomorrow's peak. Removing this bottom-fishing mindset will also reduce the FOMO mentality.

The so-called "unchangeable mind in the midst of life's many changes" I think is just that among all the uncertain things in life, the only thing you can control in life is your own thoughts.

Always keep yourself profitable at every stage of the market

There is a mentality that I often had in the past. This is probably the common mentality of those who are new to the market.
That is to always keep the mentality that once you enter, you will run out of money, or DCA 2 or 3 times and you will run out of money, but the price of each purchase is only a little different. Even when the Forex market is closed on weekends, they withdraw money from Forex to put into coins because they don't want to let their money rest.
Always staring at the price, a little increase makes me happy, a little decrease makes my heart beat fast, I'm disappointed and don't have the mind to do other things. When the market drops sharply, you will be afraid to sell everything or if you can't sell much more, then you will feel discouraged and consider it a loss and stop looking at the market.
The main reason for this mentality, when I look back later, is because of the following reasons:

  • Invest more capital than you can bear the risk.
  • Greed is afraid of losing opportunities.
  • All in bets the market will go in one direction.
  • Let news, media, and groups lead.
  • When you take profit, you quickly want to compound interest immediately because you don't want to let your money sleep.
  • Want to get rich quickly.
  • And above all these reasons, there is one main reason: lack of knowledge.

For reasons like these, it is really difficult for me to invest in the long term even though there are periods of profit from the market.
Then when I found out that the price was very good, I swallowed my saliva and filled my keyboard with no capital left to put in (I was still lucky that I didn't use loan capital to pay interest before).

I have also shared the solutions for these things in videos and articles about investing, but I will review them so that if anyone forgets, they can refer back:

  • Allocate capital to keep a proportion of cash - safe investment - risky investment - very risky investment.
    There is no fixed number for the proportions of these parts. It depends on the time of the market and each person's risk appetite, so everyone chooses the appropriate proportion for themselves. Don't ask yourself how much is correct. .
  • Cash (or stablecoin) is always in reserve and disciplined to be able to DCA in W, M frames.
  • Put your eggs in a few baskets like choosing a few coins that represent a certain segment of the market such as Layer 1, Layer 2, Defi, CEX, NFT,...
    For details, you can read the article on lessons from the egg-selling aunt that I wrote previously.
    This is to avoid incidents like Bitconnect and Luna from repeating. Even if you accidentally buy coins that turn to dust, there will still be other investments to bear.
  • Fundamental analysis of what you invest in combined with technical analysis.
    What I mean by fundamental analysis here is not to monitor and analyze daily news. It's about analyzing to know you're investing in something that has long-term value.
  • Prepare for any market scenario, when prices collapse, sideways, grow.
    When the price collapses, you can buy more at a better price. If you grow, you will also have profits combined with partial profit taking if you are afraid of regretting taking profits and then the market will continue to increase.
    In addition to capital management, I also spend a part of my capital on Farming, Liquidity, and Automatic Investment every day, every week to buy a few coins from USDT for savings and reserves.
    This will reduce the FOMO mentality of fear of losing opportunities, and also buy a little more every day when the sideways market hibernates for a long time. For how long, leave it alone because I can't guess or decide.
    You will always be in a favorable position during market cycles, you just need to reduce your greed a little.

Maintaining discipline is very difficult, but it is in our hands to decide! These are some of my experiences. If you have any experiences, please comment and share!

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