The recent correction scared many people, and several rounds of long positions being liquidated added fuel to the market.
The market is now filled with panic; a slight rebound followed by another drop leads more people to go short.
Those who didn't have time to cut losses before are now seeing the rebound in the past few days and are worried it will drop again, so they start to 'cut losses in time'.
All these decisions are not made calmly, but come from 'illusion' and 'fear'.
Fantasy that the market will rise like it did at the beginning of this year, and then it starts a long decline.
Comparing the market trends of the first half of the year, then fantasizing about a significant drop.
Thus, inexplicable fear arises, and those who claim 'I want to reach the top of the bull market' begin to waver under these circumstances.
Seeing the market rise again and again, then fall again and again, fearing this round of decline will be like the previous ones, thus giving rise to more 'greed', wanting to leave the market, and then wait for a drop to buy, thinking they can earn more.
The weaknesses of human nature are revealed one by one after the torment of the market, and one does not even realize it.
In the financial market, the only way to overcome the six poisons of human nature is: to improve your own abilities.
Ignorance and fearlessness; being ignorant of this industry leads to an inexplicable belief that everything should be as follows: should sell at this position, should buy at that position, should buy this first and then sell that...
Clearly, one understands nothing, cannot even interpret basic information like the Federal Reserve's interest rate cuts, cannot distinguish between each K-line's opening price, closing price, highest price, and lowest price, yet remains inexplicably confident about the market.
Just like this chart, the 4-hour trend of Ethereum.
One K-line represents 4 hours; 6 K-lines represent 24 hours, and the recent K-lines have already shown the victory or defeat of bulls and bears.
But can you read them? If you can't read them, then how can you judge whether the next move is up or down?
Many people still say, 'I will buy Ethereum when it breaks below 3000 and goes down to 2000.' But why would the market drop? Just because it dropped before, does that mean it will drop again?
So all of this comes from 'illusion'; relying on feelings to trade is not sustainable; occasionally being right is just luck.
If you have learned the '潜龙战法' (Hidden Dragon Strategy), you can see through the recent 4-hour trend:
“Decline starts to decrease in volume.”
“The low point starts to rise.”
The percentage retracement level after a drop exceeds 100%
“Break the downtrend line.”
If you see these signs and know what they indicate, you won't speculate on whether the next move is up or down, but will clearly understand the upcoming market.
If you are unsure about the market trend, don't think about making big money through investments; it’s possible to make a bit of money through luck, but once you earn, you should quickly leave this industry and live well, otherwise, you will end up losing again.
Last year it was about trading inscriptions, this year it's about trading memes; some made money, but look at how they are now, are they still making money?
Money that is not earned through one's own ability will eventually be returned to the market.
Why do we always hear around us:
“Ah, this coin has risen so well, I used to buy it but regrettably sold it.”
“Ah, I sold early and made 10 points, but missed out on tenfold returns.”
Why haven’t I made big money and always miss out on opportunities? Actually, just look at the present situation to understand.
When the market drops, one fears a significant drop; when it rises a bit, one fears it will go back down, always thinking of selling first and then buying again when it falls.
So may I ask: can you understand the signals of peaks and troughs? If you cannot understand the peak signals, then why fear selling when it rises a bit? Why wait endlessly when it drops a bit, thinking it will drop further?
Why are retail investors always unhappy during significant market rises? Because they sold too early or missed the opportunity.
Clearly, there was no peak, but because one cannot understand the market, they fear that profits will be lost if it drops, so they sell early; this is 'not being able to earn money outside of their understanding'.
Clearly, the market correction has ended and a new round of rise is about to begin, but one cannot recognize the signal of stopping the decline, and still fears a significant drop, waiting and waiting, while the price keeps rising, then chasing high before the next round of correction, getting trapped and cutting losses.
This is the fate of retail investors, continuously chasing highs, cutting losses when the correction is almost over, then chasing highs again, and then cutting losses.
Currently, the market is turbulent, walking alone is lonely; follow me for daily spot potential layouts and bull market strategy layouts.
