2025-12-30 03:22:58

Recently, I encountered an incident where a friend saw a news article about financial regulation and immediately liquidated all their mainstream coins. The next day, the market rebounded, and they ended up losing more than ten points. Now, every day I see similar stories—actually, most of these losses are not due to market issues but stem from misinterpretation of information.

Policy information is everywhere, but not all of it is worth taking seriously. The difference between seasoned crypto traders and newcomers lies in how they filter information. Today, I’ll thoroughly explain the three common pitfalls, hoping to help everyone avoid unnecessary losses.

**First Pitfall: Treating Rumors as Certainties.** In the market, you often hear claims like "a new policy is about to be introduced." Some of these are true, but many are spread by people with ulterior motives, with the simple goal of accumulating cheap positions. For example, suddenly hearing "a certain region will ban cryptocurrency trading" can scare the market into panic selling, but in reality, someone is just creating panic. My straightforward approach is: only trust official announcements from formal channels; treat all other information as market noise.

**Second Pitfall: Interpreting Neutral Information as Bad News.** Many times, the central bank just issues routine risk warnings, such as "reminding investors to be aware of cryptocurrency volatility risks." This is standard procedure. However, many people get scared by such statements and rush to sell, missing out on subsequent upward movements. Neutral policies should be treated neutrally—don’t scare yourself unnecessarily.

**Third Pitfall: Focusing Only on Policies and Ignoring the Big Trend.** This is the most prone to bias. If the market is in a clear upward channel, short-term policy negative news is usually just an excuse for a pullback; the underlying trend remains unchanged. Conversely, if the market is already in a downtrend, even an insignificant policy message can trigger chain reactions. The key is to clearly understand the market’s overall direction.

I suggest everyone try building their own "Policy Monitoring Sheet," regularly organizing official policy developments from different regions, and combining this with technical and fundamental analysis for judgment. This way, you won’t be swayed by rumors and won’t miss truly important information.

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LiquidationHunter

· 10h ago

Another rookie scared out of their wits, have you learned to be smart this time? Selling all your holdings is just scaring yourself; if you believe in rumors, you deserve it. Don't overthink things that the authorities haven't said; if you lack this awareness, you're playing with coins. Honestly, it's poor psychological resilience; you need to learn to distinguish noise. I stick to the official policy statement, which can indeed help avoid being cut. Actually, the hardest part isn't filtering information, but not getting emotional. Seeing them panic sell is really quite pitiful. Few people have carefully read the central bank's announcement; most are just spectating. My friend is the same, always talking about banning coins, but nothing ever happens. The core principle is: trend is king, policies are just noise.

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MrDecoder

· 11h ago

It's the same old story. Brothers who panic sell when they see the news should wake up. Really, the most deadly thing is always scaring yourself. Don't take things the official hasn't spoken about too seriously; most of it is just a scheme by people with ulterior motives.

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ForkTongue

· 11h ago

It's the same old story. Basically, don't follow the trend and dump your holdings. Watching others sell off just because of a rumor is really painful. The policy monitoring table is a good move, but it requires execution. Honestly, most people lose because their minds are too quick to react. Being led around by rumors every day—no wonder you can't win playing like that.

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BottomMisser

· 11h ago

Once again, these losses caused by panic selling are truly unbelievable. When will the "hearing the wind and believing the rain" problem ever be fixed? Before the official announcement even arrives, already scaring oneself—aren't you just giving money to the market manipulators? I've heard quite a few stories about the "Clear Out Brother," and it's always the same routine. Neutral news is read as negative, which is a common mistake among beginners. I've already established the policy chart, and now it's mostly static. Failing to see the big trend clearly and focusing on policy-related news—no wonder you're getting cut.

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AirdropHunterXM

· 11h ago

It's the same story again, every time someone gets scared and clears their position. Why do some people always have to scare themselves? The official hasn't said anything yet and they're already running away, it's ridiculous. That's why I only pay attention to the official website announcements; everything else is noise. The difference lies in mindset; veterans are already used to this routine. Neutral news is treated as bad news, it's truly surreal. I've already set up the policy chart, and it’s actually quite useful. Trend is king; short-term policies are really just a smokescreen. That brother probably needs to remember these three pitfalls. Information asymmetry is how people get exploited.

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GateUser-2fce706c

· 11h ago

I've always said that 99% of people die from information asymmetry. This article is well-written, but most people will still continue to cut their own losses after reading it. --- To be honest, I've seen the logic of friends clearing their positions too many times, always the same script. The key is to establish your own judgment system and not be hostage to market sentiment. --- Opportunities must be seized, everyone. Those who can calm down now and learn to filter information will be winners in three years. I have long established my own monitoring system, which has been highly effective. --- Haha, another explanation of the leek-cutting method. The problem is, knowing and doing are two different things. Most people will still cut if they need to. --- The most important thing is to recognize the overall trend and not get entangled in short-term fluctuations. The underlying logic hasn't changed; everything is noise. --- This is what is called the information dimension being on a different level. Many people analyze news, while smart people focus on market sentiment. That's the difference. --- Policy monitoring tables sound good, but frankly, it's still a test of execution. Those who persist in doing this can indeed avoid many pitfalls. --- Time waits for no one. The current stage tests your mindset the most. Those who can stay calm and analyze are the keepers; everyone else is just nutrients.

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SandwichDetector

· 11h ago

The market rebounds by ten points, and this is the most painful time to cut losses. As soon as rumors start spreading, all the retail investors sell off. Don't scare yourself; this statement is spot on. Rumors are flying everywhere; only official announcements count. If you don't see the trend clearly, even the best news can be a trap. How do the guys who cleared their positions feel now? Can't even imagine... Official channels are the real deal; others are just people trying to eat your chips. The idea of a policy chart is good; it helps avoid being led by the rhythm. Treating neutral as negative is indeed a common move among beginners. The trend has started, and even bad news from policies is useless; when it drops, even a slight breeze or movement can be disastrous.

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