Why do you keep losing money the more you look at candlestick charts? The difference between beginners and experienced traders is in this one glance!
Many beginners in cryptocurrency trading often feel like the market is playing tricks on them: they chase prices when they rise, only to get trapped, and when they see prices drop, they run away, only to see them rise again. This is not a problem with the market; it's that what you are looking at is fundamentally different from what experienced traders see!
Beginners look at candlestick charts and only see price fluctuations; experienced traders look at the structure, trends, distribution of chips, and trading volume. One is focused on "the price has risen now," while the other is focused on "the price will rise in the future."
For example, when there is a large bullish candlestick, beginners might think it's a breakout, while experienced traders will check if there is volume support, whether it is a false breakout, or if it is a signal for distribution. Conversely, when prices break below support, beginners panic and sell off, while experienced traders take the opportunity to buy low.
In the cryptocurrency world, candlestick charts are never just superficial; they are a blend of emotions, chips, and strategies. Learning to look at candlestick charts like an experienced trader is your first step towards profitability.
