After 7 years of hard work in the cryptocurrency industry, I plunged into this market full of temptations and risks with the dream of getting rich, and now I am burdened with a huge debt of 8 million. Every penny of loss is an unforgettable lesson. But it is also the blood and tears along the way that made me see the many ways in the cryptocurrency battlefield. Today, I will share these priceless experiences, hoping to light a warning light for those who come after me.
1. The fatal mental misunderstanding behind losses
Fear of stop loss, ostrich mentality: Many cryptocurrency traders, including me in the past, have a deep fear of failure and dare not face losses. The thought of pressing the stop loss button and admitting that their transaction has failed is like a hammer hitting their self-esteem. Therefore, they would rather watch the loss snowball and be reluctant to stop loss. But the market is never merciful, and this kind of escape will only make themselves fall into a deeper quagmire.
Anxiety in closing positions, seeking temporary peace of mind: While holding positions, anxiety shadows you, always fearing a sudden reversal, where one second you are profitable, and the next you lose everything. To quickly dispel this anxiety, many choose to close positions early. Little do they know, this is often exiting in the darkness before dawn, missing the subsequent big market. True experts can maintain rationality amidst anxiety, making decisions based on strategy rather than emotion.
One-sided self-deception: Some traders completely let themselves go in the market, neither wanting to control trading rhythm nor willing to take responsibility for the results. Buying a certain coin is purely following the trend or fantasizing that it will soar, without considering the project's real foundation. Once the market trend goes against them, they are left dumbfounded, unable to accept the harsh reality.
Emotional extremes, a big taboo in trading: After losses, anger boils over, feeling that the market has severely calculated you, attributing all mistakes to external factors; after profits, one feels elated, believing they have mastered the market pulse. Little do they know, such extreme emotions are the triggers for losses. The market is unpredictable and does not shift based on personal will; emotional trading only leads one further down the wrong path.
Betting everything, desperate gambling: When someone enters the crypto market with money they can't afford to lose, or even high debts, a tragic ending is already doomed. Treating trading as a lifeline, blinded by the eagerness to succeed and the fear of missing out, completely disregarding risks. Greed consumes rationality, eventually leading to a total loss of capital.
Averaging down, sinking deeper: Many people facing losses are unwilling to admit reality and attempt to average down by continuously adding positions, waiting to break even. On the surface, it seems to reduce the average price, but in reality, it is doubling down in the wrong direction. Pride prevents them from accepting failure, resulting in a deeper plunge into loss.
Impulsive addiction, blind trading: These traders are like gamblers, easily excited and addicted to trading. They rely solely on intuition, ignoring any technical analysis or fundamental research, and dare to go all in. If there are no trades over the weekend, they feel uneasy, their minds filled with thoughts of entering the market. But the market is not a casino; aimless impulses will only lead to ruin.
Small wins lead to arrogance, overestimating oneself: An occasional profitable trade makes one forget themselves, thinking they have become the ruler of the market. They begin to blindly trust themselves, increasing positions and changing strategies at will, completely forgetting the element of luck. Little do they know, a lucky profit may just be a market trap, with the real outcome often being a large loss.
Meager gains, lack of motivation: Some traders have accounts that remain stagnant for a long time, with profits pitifully low. The deeper underlying reason is a psychological lack of confidence, doubting their trading strategies and ability to pick coins, leading to negativity and a loss of motivation to pursue higher profits, thus starting a vicious cycle.
Disbelieving the system, acting on whims: A carefully constructed trading system is discarded like a piece of trash. Either one does not believe it can bring profits, or lacks the patience to test and optimize it seriously. It may be that the system's style does not match one's personality, or perhaps they pursue trading excitement, or feel that finding a successful system is hopeless. In any case, without adhering to the rules, trading will naturally become chaotic.
Excessive demanding, feeling helpless: Perfectionists suffer the most in the crypto world, overly predicting trading outcomes and fearing losses or mistakes. They want to seize every opportunity while demanding that every trade is flawless, but where is the certainty in the market? Not accepting losses as a normal part of trading and the uncertainty of outcomes ultimately leads to missed opportunities and even incorrect directions due to hesitation and fear.
Ignoring risks, betting blindly: When trading, one only dreams of making money, completely ignoring risks and dismissing capital management. Either they are too lazy to calculate reasonable trading volumes, or they are unwilling to take responsibility for potential risks, opening positions carelessly. Once the market turns, they have no ability to resist, only able to watch their capital shrink dramatically.
Over-trading, greedy revenge: Blinded by greed, they attempt to conquer the market, frequently entering and exiting. After losses, rather than calmly reflecting, they harbor revenge, wanting to recover more from the market, only to sink deeper. Similar to impulsive trading, they are driven by irrational emotions, racing down the wrong path.
Fearful trading, lack of confidence: Without a mature trading system to support them, facing unknown risks fills them with unease. Fearing the loss of principal and worrying about being ridiculed ultimately stems from a lack of self-control and confidence in their trading system and abilities. This fear causes them to shrink back in the face of opportunities, missing out on profitable chances.
2. 'Twelve Don'ts' rules for stop loss in trading
Deeply trapped, don't cut losses, it's too late: When hesitation traps you in deep losses, and the losses have reached astronomical figures, stopping loss at this point is akin to a drop in the bucket, and it will also deal a fatal blow to your psychological defenses. It is better to stabilize your mindset and seek other opportunities.
Don't panic during manipulation, stay confident: Major players often conduct significant washouts before lifting prices to drive out the unstable hands. If the coin you hold experiences fluctuations, don't easily stop loss; this may be a prelude to a surge, so hold tight and wait for the dawn of an increase.
Adjustment in an upward trend, hold firm for the medium term: In an upward trend, occasional technical corrections are quite normal. As long as the overall direction is upward, you should hold medium-term while combining short-term high sell and low buy; don't be scared off by short-term corrections.
Close to the bottom, don't easily give up: The price is approaching the bottom area, and although there may be one last drop, the downward momentum has exhausted. At this time, holding firm and enduring the darkness will allow you to welcome the turning point of dawn.
Limited decline, wait for the right moment to accumulate: After a long decline, the price has compressed to a low point, with almost no space for further decline. At this moment, not only should you not stop loss and sell, but it is also an excellent time to accumulate for the subsequent rebound.
Index oversold, be cautious with stop losses: An oversold index is an important signal, more reliable than individual coin indicators. Observing the overall market's oversold condition requires specialized indicators, such as STIX, OBOS, ADR, ADL, etc. At this time, do not blindly stop loss.
Bear market volume shrinks, avoid cutting positions: In the late stage of a bear market, the volume shrinks, indicating that the downward momentum is exhausted. If you rush to stop loss at this time, it is equivalent to giving away cheap chips. Be patient; a turning point will come.
Panic selling, avoid following the crowd: Panic selling often marks the bottom of a phase. Don't be swept away by panic and join the selling army; calmly observe and wait for the dust to settle before making a decision.
Support is near, it's advisable to observe: The price is close to a long-term historical support level, so don't rush to stop loss or buy the bottom. First observe, confirm the trend, and then act; entering hastily may lead to traps.
Value divergence, hold long-term: The irrational plunge in a bear market often causes high-quality coins to be unfairly dropped to absurdly low prices. If your holdings have investment value, don't be scared away by short-term fluctuations; maintain a long-term perspective, and value will eventually return.
Stabilizing with increasing volume, don't rush to stop loss: When the price stabilizes at a certain level and attracts mainstream capital, the volume continues to expand, signaling a rebound. At this time, don't stop loss; instead, increase your position in line with the trend, as you may ride the rebound fast train.
Risk and reward, weigh stop losses: Set aside personal gains and losses, and calculate the risk-reward ratio of buying at the current price. If the risk far exceeds the reward, decisively stop loss; otherwise, you should hold firm and not be disturbed by short-term fluctuations.
3. Guide to advanced learning in trading
Price insights: Secrets of the K-line core: Starting from the most basic interpretation of K-line strength and weakness, understand the market game behind each K-line; track trend directions, identify key support and resistance points; finally, delve into the mysteries of patterns to outline the blueprint of future trends from price fluctuations.
Decoding patterns: The key to trading victory: First, familiarize yourself with various patterns, understanding the market psychology and capital flow meanings behind them; then, master identification skills and precise entry timing, ensuring every entry is justified; finally, continuously strengthen practical abilities in pattern trading, flexibly adapting to different market conditions.
To master pattern trading, remember these key points:
Risk control is paramount, mindset is key: At all times, strictly control risk and maintain a calm and steady mindset. This is the foundation for survival and profitability in the crypto world. If risk is uncontrolled, even the most profits will instantly vanish; if the mindset collapses, even the best strategies cannot be implemented.
Price leads, patterns follow: Understand that patterns arise from price fluctuations. First analyze the logic of price changes in depth, then summarize the patterns from it, so that you can accurately speculate on future trends without being misled by appearances.
Multiple frames integrated, precise strikes: Patterns under different time frames have their unique uses. The larger frame helps you overlook the overall price range and trend, while the smaller frame accurately positions your entry timing and profit-loss ratio. Combining both allows for flawless trading decisions.
Consensus gathers, power multiplies: Market consensus is an invisible but powerful force. The overlap of various patterns and the fusion of different techniques in the 'convergence zone' often release super strong signals. Keeping up with market consensus naturally increases the success rate of trades.
4. Deep interpretation of K-line price behavior
(1) Concept origin
Price behavior analysis is the cornerstone of technical analysis in the crypto world. It focuses on the historical fluctuations of price and changes in trading volume, gaining insights into the behavior of market participants, as price movements essentially result from the game of funds and psychological battles among various parties, all of which are evident in price patterns and trading volume.
(2) Tool explanation
The K-line code: Each K-line is like a miniature reflection of the market, encompassing four key price points: opening, closing, highest, and lowest. By observing the arrangement and combination of K-lines, one can intuitively feel the market's strength and weakness, as well as capture specific patterns, unlocking the door to trading secrets.
Trend navigation: Trend lines are like navigation routes on a map, connecting price highs and lows, accurately presenting price convergence, expansion, or oscillation patterns, helping you see the market trend direction and grasp the sailing direction.
Support and resistance lines: Support levels act as a cushion for market declines, while resistance levels serve as a ceiling for upward movements. Paying attention to price performance at these key lines can sharply judge market strength and weakness transitions and prepare for offensive and defensive strategies.
Patterns insight into the future: Pattern analysis is the main focus; by integrating the tools mentioned above and accurately identifying specific patterns, you can predict the future price direction. This is a psychological game with the market, and understanding patterns allows you to seize opportunities.
(3) Analysis of strengths and weaknesses
Advantages revealed: Firstly, easy to get started, no need to grapple with complicated theories; just focus on K-lines and price strength, choosing strong ones to start trading; secondly, strong reliability, as price behavior reflects the mainstream capital decisions; following strong trends naturally leads to rising profit expectations; thirdly, high expectations, starting from the market's starting point, aligning with the overall trend, thus paving the way for wealth appreciation.
Disadvantages hidden: On one hand, major players are cunning and well-versed in trends, often inducing retail investors to stop loss for better entry points; on the other hand, easy to learn but hard to master, singular analysis can lead to mental rigidity, requiring extensive practice and diverse filtering to avoid numerous traps.
In the smoke-free battlefield of the crypto world, it ultimately boils down to the wisdom game between retail investors and institutions. Without exclusive news or firsthand information, it is easy to become fodder for harvesting. If you also aspire to make a comeback in the crypto world, like-minded individuals are welcome to comment '888' and join hands to break the situation, showing the institutions your strength and exploring the path to financial freedom together!
#币安MegadropSOLV #加密市场反弹 #特朗普上台概念币有哪些？