Many traders feel that the market is moving against them as soon as they enter a trade. This phenomenon is common, especially among beginners, and raises fundamental questions: Is the market against me? Or is the problem with my decisions? To answer, we must analyze the subject from all sides to understand the reasons behind this problem and identify practical solutions to it.
1. Understand the market: Why does it seem to be moving against you?
The market is not a personal enemy of any trader. The market moves based on the interaction of supply and demand forces, economic influences, and psychological factors that affect its participants. The market may seem to be moving against you due to factors such as:
Entering the trade at the wrong time: This often happens when buying at resistance areas or selling at support.
Natural Market Volatility: Financial markets, especially cryptocurrencies, are known for their volatility. These movements can lead to stop loss levels being hit before the price moves in the expected direction.
Lack of a clear plan: Random trading decisions increase the likelihood that the market will move against your expectations.
2. The main reasons why you feel the market is moving against you
2.1. Buy at resistance
Resistance is a point where you expect the price to stop or reverse. Buying at this point without waiting for confirmation may result in the price reversing immediately after your entry.
Reason: Not identifying support and resistance levels correctly or not waiting for a confirmed breakout.
2.2. Emotional Impact (FOMO - Fear of Missing Out)
Traders enter the market quickly because of the fear of missing out on a profitable opportunity. This leads to late entry into trades after the price has approached its highs.
2.3. Weak risk management
Entering into trades that are too large for your capital can result in huge losses when the market moves against your expected direction.
2.4. Lack of technical and fundamental analysis
Relying on random signals or indicators without analyzing the overall market context may lead to incorrect decisions.
2.5. Ignoring the general market trend
Trading against the main market trend increases the probability of failure, because the general trend is supported by major market forces.
3. How do you correct these errors?
3.1. Learn to identify support and resistance levels
Use charts to identify points where price often stops.
When trading:
Buy at support where prices are relatively low.
Sell at resistance where prices are relatively high.
3.2. Controlling emotions
Trading based on clear and reliable signals helps you avoid falling into the trap of emotions such as fear and greed.
Take time to analyze the market and don't enter into trades just because you're afraid of missing out.
3.3. Follow a clear trading plan
Your plan should include:
Entry and exit conditions.
Stop loss and take profit levels.
Capital management rules.
Sticking to a plan prevents you from making rash decisions.
3.4. Using technical and fundamental analysis
Use tools such as support and resistance lines, moving averages, and the Relative Strength Index (RSI).
Analyze economic news and developments that may impact the market.
3.5. Trading with the trend
Determine the overall trend using tools such as moving averages or long-term technical analysis.
Avoid trading against the main market trend.
3.6. Reducing the amount of risk
Do not risk more than 1-2% of your capital on a single trade.
Use stop loss orders to protect capital.
4. Practical Tips to Avoid Feeling Like the Market Is Moving Against You
1. Pre-analysis: Do not enter any trade without studying the market thoroughly.
2. Practice on a demo account: Use a demo account to test your strategies before risking real money.
3. Avoid rushing: Wait for signals to be confirmed before entering the market.
4. Record trades: Keep a record of your trades to learn from your mistakes and develop your strategies.
5. Continuous learning: Keep learning new tools and improving your analysis skills.
5. Practical example
Situation: You bought a cryptocurrency at the $50,000 resistance level and watched the price drop immediately after your entry.
Analysis: Confirmation of a resistance breakout (such as a close above $50,000) should have been awaited with higher volume.
Correction:
In the future, wait for confirmation of signals before buying.
Place a stop loss below resistance to reduce risk.
Use indicators like RSI or MACD to determine momentum.
Feeling like the market is moving against you is just a result of ill-considered decisions or emotions that affect your trading. By using technical and fundamental analysis, controlling your emotions, and sticking to a clear trading plan, you can improve your performance and increase your chances of success. Remember, the market is not an enemy, but a tool to achieve your financial goals if you approach it rationally and with discipline.
