Mistakes are common among new traders, but they donât have to be repeated. Once you understand this concept, youâll avoid the pitfalls that many fall into when navigating the crypto market.
"HOW DOES THE MARKET RETAIN STABILITY? IF PROFITS ARE TAKEN, WHY DOESN'T IT COLLAPSE?"
Hereâs a simple explanation: reckless trades, often involving high leverage and poor risk management, are inevitably consumed by the market.
Market prices are governed by demand and supply. Higher demand drives prices up, while reduced interest pulls them down. But why does the market never run out of funds?
Consider this: imagine a million traders entering the market, each contributing an average of $50, while you enter with $10. Collectively, thatâs $50 million in a single session. Out of these, only 50,000 traders profit, while the remaining 950,000 face stop-losses. The profitable traders withdraw $5 million (at an average gain of $100 each), leaving $42.5 million circulating in the market after the $47.5 million loss from others. This surplus keeps the market afloat. Remember this perspective the next time you feel "tricked" by the marketâitâs all part of a broader economic cycle.
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SECRET INDICATORS YOU'VE BEEN MISSING!
Thereâs a hidden tool in plain sightâone you mightâve overlooked despite seeing it regularly. Hereâs how to uncover and use it effectively:
1. Review heatmaps to identify tokens with the highest and lowest percentage changes. Focus on the top 1-5 tokens in both categories.
2. Check Binance Squareâs trending tokens and compare them to your heatmap list.
3. Analyze the percentage change from the initial impulsive wave to the most recent one.
The key lies in understanding percentage shifts. When gains exceed 9%, retracements are likely, creating opportunities to open short positions, especially near a surge of 80% or higher (though rare in bearish markets). Similarly, when losses exceed 9%, expect recoveries, allowing for long positionsâespecially if nearing an 80% dip (which is rare in bullish trends).
These insights are designed to empower tradersânewcomers and veterans alikeâto navigate volatility with confidence. Stay informed, trade smart, and always prioritize calculated decisions.
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