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Recent market changes have taught me a valuable lesson. During the phase when Bitcoin was relatively stable while altcoins surged, I overly optimistically continued to invest in altcoins, ignoring warning signs from the market. Despite Bitcoin's rising dominance and the poor performance of altcoins, with the market sentiment being extremely fragile, I stubbornly pursued short-term profits.
This irrational behavior led me to constantly 'buy the dip', resulting in increasing losses and a collapsing mentality. Worse still, I even subjectively closed the short position on the Bitcoin that I should have held. I was overly confident that the bull market would last until September, believing that every previous dip was a buying opportunity. However, the market is ever-changing, and I must admit this.
Looking back on this experience, I realized that I should rely more on my self-developed Bitcoin trading strategy, which has a Sharpe ratio as high as 2.8. This strategy is based on calm code logic, unaffected by emotional fluctuations, ultimately helping me avoid greater losses.
This experience has made me deeply realize the importance of staying rational and following a set strategy, even in a bull market. Overconfidence and subjective judgment can lead to serious consequences. In the future, I will be more cautious in assessing market conditions and stick to using proven trading strategies rather than blindly following short-term market trends.