The cryptocurrency market is not a random game; it has its own "hidden rules".
When I first entered the market, I thought that market trends relied on analysis, trend judgment, and quick reactions to information.
But later I realized that what truly pulls people down is not the market itself, but our own misunderstandings of it.
The following summaries come from my reflections after stumbling, they are not secrets, but the sooner you know them, the better you can avoid unnecessary losses.
1. Daytime declines are often opportunities
Especially in a slowly declining market without explosive volume, it is often a "wash-out" to shake people out. When the European and American markets open, it is easy to reverse and rise.
2. Daytime surges are traps, not blessings
The large bullish candlestick you see may be the beginning of the operator unloading at a high price. Chasing in could very likely bury you at the peak.
3. "Pinbar" market movements deserve attention
Long upper and lower shadows are not coincidental; they are mostly probing actions by institutions. The deeper the pin, the stronger the signal, and it should not be ignored.
4. Price rises before good news and falls after it
This is the standard procedure in the cryptocurrency market. The real opportunity is always to ambush before the news is announced, not to chase after the news is released.
5. Heavy positions do not bring security, but blind spots
The heavier your position, the more you hope it will rise, and the more you will selectively ignore risks. Conversely, when holding lighter positions, your judgments are clearer.
6. Once you set a stop-loss, the market goes as originally planned
The market seems to be "watching you trade," but in reality, you are making the same reactions as the majority, and being harvested is a natural occurrence.
7. Almost breaking even means a reversal? It’s not a coincidence
These "almost there" moments occur too frequently to be considered accidental. The market will not let everyone exit easily.
8. The market truly starts moving only after you take profits
The market is counterintuitive. When you think it’s about time, it’s precisely when others are preparing to make a big move.
10. Emotional excitement is the biggest enemy of trading
The more excited or panicked you are, the easier it is to be manipulated. Only calm individuals can discern what the real opportunities are.
11. When you have no position, you always feel there are too many opportunities in the market
This is the essence of FOMO. Don’t let price rises cloud your judgment; be cautious when you can enter the market, and more alert when you cannot.
Most of the time, the market is not complicated; what is complicated is human nature.
To truly see the market, you must first understand yourself.
