He said spot trading is the safest, without leverage you won't get liquidated, you can't lose too much.
As a result, three months passed, and the account went from 50,000 to 8,000, and even my family didn’t dare to mention it.
I asked him how he lost.
He said: 'I watch short videos, buy whatever I hear is going up, I heard a bull market is coming and went all in, even learned to average down from others, thinking it would lower my cost, but I kept averaging down further.'
I only replied to him: It's not that you can't do it, it's that you don't understand how this market makes money.
The reality is like this:
Spot trading without leverage ≠ no risk
What truly makes people lose everything is not the crash, but the fantasy after being stuck: 'It will definitely come back up.'
Don't forget that saying: Coins that are not sold, price changes are just numbers.
Many people entering the spot market fall into these traps right away:
[Entering the market based on news]
What others call 'good news' is often when they have already profited. If you follow in, you are just helping them offload.
[Emotional averaging down]
Averaging down is not an emotional outburst, it's a strategic action. If the trend has turned bearish, the more you average down, the faster you will lose.
[All or Nothing]
Don't always think about going all in for a turnaround, spot trading is essentially 'farming'. You need to sow seeds, control water, and wait patiently, not gamble on a single seed to become wealthy.
So what exactly is considered reliable?
Don't be afraid of K-lines; they are not metaphysics, but a visualization of emotions.
As long as newbies understand three things, they basically have a foundation:
① How to read K-line sentiment?
Long upper shadow: Pull back after a spike, someone is unloading.
Long lower shadow: Downward pressure is pulled back, someone is bottom fishing.
Consecutive bullish candles: Optimistic sentiment, trend is strong.
Consecutive bearish candles: Sentiment is turning bearish, be cautious.
② How to judge the trend?
The simplest and most straightforward standard:
Highs and lows are rising → Uptrend
Highs and lows are decreasing → Downtrend.
Fluctuating back and forth without direction → Sideways market.
③ When is it easiest to lose?
When the trend is complete, trading volume decreases, and the K-line shows a 'high and then low' pattern,
Yet you are still fantasizing: 'If it rises a bit more, I'll sell.'
If you enter at this time, you are most likely the last one to take the fall.
In the end, how to play spot trading? Remember these three words:
Choose coins | Control positions | Follow the trend
Choose coins based on direction: Don't touch coins without stories or without buyers.
Control positions based on a plan: Don't be impulsive, don't fantasize about a miraculous turnaround.
Follow the trend with K-line: Go wherever the market goes, do not resist forcefully.
Many people want to do flashy things as soon as they enter, but for newbies in spot trading, the most important thing is:
Don't get drowned, learn how to float first.
As long as you are not swept away by emotions, do not go all in, do not stubbornly hold on, and can last long enough, you might catch a big trend.
Don't be fooled by social media boasting about getting rich every day,
Those who truly survive are the ones who understand the charts, manage their positions, and gradually find their rhythm.
If you are still losing, I suggest that from now on, calm down:
Understand K-lines, understand trends, understand the rhythm of this market.
If you don't understand, just send me a few more words!
