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Don’t let your fingers be busier than the coin price: The three biggest misfortunes of frequent trading

Have you ever had a similar feeling, initially wanting to hold a mid-term trend trade, but seeing the K-line jump up and down and feeling the trend is reversing, so you quickly reverse your position, or busy yourself with reducing your holdings; right after the operation, you feel you've lost your original intention, so as soon as the K-line moves, you quickly reverse again or add back to your position, ending up with “a flurry of operations as fierce as a tiger, but a record of 0-5,” if you’ve been hit, then quickly join Little God of Wealth to look at the drawbacks of frequent trading and wake yourself up!

1. Fees: The exchange’s “perpetual motion machine,” your wallet’s “broken banknote machine”

You think you’re buying low and selling high? The exchange laughs at you for “charitable order placing”! Every buy and sell with 0.1% fee may seem like a mosquito bite, but if you operate 20 times a day—congratulations, monthly fees are enough to buy a phone. What’s even more deadly is the “slippage assassin”: when buying at market price, the price suddenly jumps, and when selling, it instantly hits the stop; a series of fierce operations, but your principal is lost like cheese chewed by mice. The most heartbreaking is the smile of the tax officer: every profit must be taxed, frequent trading? You’re actively applying to be a “tax model”!

2. Emotional roller coaster: from “Crypto Buffett” to “Rooftop Reserve”

The biggest side effect of frequent operations:‌ human brain turns into monkey brain‌.

‌FOMO (Fear of Missing Out) syndrome‌: browsing at midnight to find a dog coin skyrocketing 300%, jumping in full position like a carp, only to find yourself “freezing on the mountain top at 3 a.m.”;

‌Overconfidence swelling‌: guessing the market correctly three times in a row, immediately crowning yourself “K-line prophet,” but on the fourth operation, the market hits you with a “half your principal gift”;

‌Dopamine addiction syndrome‌: the thrill of quickening heartbeat during buy/sell is like riding a pirate ship, until you realize your account balance is less reliable than the ship’s bumper…

True story: a netizen, after trading 50 times in one day, cramped fingers and mistakenly bought the wrong coin, successfully turning SHIB into SHIT (there really is such a coin).

3. Strategic pattern? Nonexistent, you’re just playing “Hopscotch”

The essence of frequent trading:‌ using tactical diligence to cover strategic laziness‌.

When you’re busy picking up coins on the 5-minute K-line, the guy holding Bitcoin is drinking milk tea and watching his account grow by an extra zero; when you chase the rise and fall until your eyes are golden, your neighbor holding ETH long-term has used the gains to buy an electric car. The market always rewards “turtles”—those who held BTC in 2017 earned 18 times, while most high-frequency traders are just working for the exchange. Even worse, frequent rebalancing makes you miss out on explosive gains: like constantly switching toilets when squatting, only to hear someone else flushing after you stand up.

Ultimate advice

The survival rule for old-school crypto traders:‌ patience beats speed, and sleeping beats operation‌.

(After all, in dreams, coin prices always go up, and you don’t have to pay fees)