Some always say: 'Spot trading is the safest, without leverage you won't get liquidated, you can't lose too much.'
What’s the result? In three months, his account went from 50,000 to 8,000, and even his family dared not mention it.
I asked him how he lost.
He said: 'I saw someone say it would go up on short videos, so I bought in, heard a bull market was coming, so I went all in, and then learned from others about averaging down, thinking it would lower my cost, but the more I averaged down, the deeper I went.'
I just replied to him: It's not that you can't do spot trading; it's that you fundamentally don't understand how this market makes money.
The reality is this:
Spot trading without leverage ≠ no risk.
What truly wipes out investors is not the crash itself, but the lingering fantasy that 'it will definitely rebound'.
Don’t forget that saying: Coins that haven’t been sold only fluctuate in numbers.
Many newcomers to the spot market fall into these traps at first:
[Entering the market based on news]
What others call 'good news' is often when they have already eaten the meat and are just waiting for the next buyer. When you follow in, you just become their 'tool' to cash out.
[Emotional averaging down]
Averaging down is not an emotional outburst of wanting to 'recover losses' but a strategic action with strict conditions. If the trend has turned bearish, the more you average down, it’s like throwing money into a bottomless pit; you’ll just lose faster.
[Putting everything on the line]
Don’t always think about betting everything to turn your fortunes around; spot trading is essentially 'farming'—you need to choose good seeds, control watering frequency, and patiently wait for seasonal changes, rather than betting on a single seed to make you rich.
So how to trade spot reliably?
Don’t fear candlesticks; they are not mysticism but a visual record of market sentiment.
As long as beginners understand three things, they will have a basic grasp:
① How to interpret candlestick sentiment?
Long upper shadow: After a rise, it falls back, indicating someone is quietly unloading.
Long lower shadow: Pulling back during a decline, it may indicate someone is bottom-fishing.
Consecutive bullish candles: Market sentiment is optimistic, trend is strong.
Consecutive bearish candles: Sentiment turns pessimistic, be vigilant.
② How to judge the trend?
The simplest and most straightforward standard:
Both highs and lows are rising → Upward trend, can hold patiently.
Both highs and lows are lowering → Downward trend, don’t easily try to catch the bottom.
Moving back and forth without direction → Consolidation phase, act less and observe more.
③ When is it easiest to lose?
When the trend has ended, trading volume shrinks, and candlesticks show 'highs and then lows', you're still fantasizing: 'If it rises a bit more, I'll sell.'
Entering the market at this point will likely make you the last one to take over.
Ultimately, how to play spot trading? Remember three words: choose coins, control positions, follow the trend.
Choosing coins based on direction: Don't touch coins with no story, no popularity, and no buying power, no matter how cheap.
Controlling positions based on planning: Don’t impulsively increase your position, don’t fantasize about one trade changing your fate, position size should increase gradually like watering.
Follow the trend with candlesticks: Go with the market direction, don’t resist the trend, just like farming should follow the seasons.
Many people want to get fancy as soon as they come in; in fact, for beginners in spot trading, the most important thing is: first, don’t drown, learn how to float.
As long as you are not swept away by emotions, don’t go all in, and don’t stubbornly hold, if you can survive in the market for a long time, there will definitely be opportunities to catch a wave that belongs to you.
After all, the crypto space is never short of opportunities; what’s lacking are those who can endure until the opportunity arrives.
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