[Lessons Learned from Losing Money] Don't Use Institutional Positions to Boost Your Confidence


There is a classic trap in the crypto market: seeing a well-known institution buy a certain coin, and thinking "They must have done due diligence," so you follow in confidently.
Seeing ETFs inflow, and thinking "Smart money is entering," so you increase your position.
Seeing a big player call a trade, and thinking "They have insider information," so you jump in.
The problem is: when institutions make mistakes, they lose LP's money; when you make mistakes, you lose your own principal.
Institutions can sell coins to cut losses after losing billions, without affecting Saylor's appearance on the show next month to talk about faith;
but if you lose 30% of your principal, you might have to scrimp on next month's gas fees.
Position logic is misaligned, but many people treat institutional actions as their own decision basis.
This is a rule that should be engraved in your mind—your capital attributes, time cycle, risk tolerance, and institutions are completely different.
Institutional "bottom-fishing" is using other people's money to experiment;
your "bottom-fishing" is risking your own survival.
Others' trades should not be copied.
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