Yesterday my friend used 10x leverage to invest in a popular coin. Before opening the position, he confidently said: This wave is definitely going to soar; after opening the position, as the coin price just shot up with a big green candle, he chased in, and ten minutes later it plummeted, wiping out his position.
"I clearly saw the right direction, why did I still lose?"
I replied: You didn’t enter the market, you fell into a trap set by the market makers.
Many people get liquidated for no other reason than failing to see through their opponent's tactics. Many die in the so-called 'understanding candlesticks', but fail to realize that the market makers across from them understand human nature better than they do.
The following are the most common tactics used by market makers to liquidate people today:
🔹 False breakout to lure buyers
Break through key levels to attract buying, then immediately crash the price, breaking through original support. Breakout without volume = 80% false move!
🔹 Range-bound accumulation → crash for profit
Long periods of sideways movement make you lose patience; when it moves up, you chase, and when it crashes, it collapses, instantly harvesting your capital + confidence.
🔹 Reverse liquidation kills both sides
First, trigger short stop losses, then counterattack to liquidate longs, double kill + collect fees, a complete profit scheme.
🔹 On-chain theatrics to create FOMO
Transfer a few times to 'whale addresses', create a hot contract to deploy a false illusion, making you mistakenly believe 'the main players are entering', while in reality, they are offloading at a high price.
🔹 Low volatility range erodes willpower
The coin price neither rises nor falls, repeatedly high selling and low buying, silently eating away at your capital in the order book you can’t see.
🔹 Shadow spike liquidates leverage
Contract prices far from spot, a single spike wipes the entire market, not even giving a chance to rebound, directly liquidated.
How do they liquidate? The core is three moves:
1️⃣ Create illusions (price, news, sentiment)
2️⃣ Exploit psychology (greed, fear, FOMO)
3️⃣ Precisely control the rhythm (breakouts, spikes, ranging, counterattacks)
So, remember this phrase:
True experts don't just see accurately; they avoid falling into many traps. Don't go all in, don't chase highs, and don't take every rumor as truth; if you don't understand, it's better to miss out than to rush blindly.
Market trends may seem like a technical battle, but in reality, it's a psychological war. What you see are candlesticks, but what they are playing is the rhythm of your heartbeat. Don’t be deceived by the hype; that may just be the fireworks signaling the market makers are exiting.
I am Uncle Nan, helping you avoid detours with the pitfalls I've encountered.