Reasons why you lose money! Even though you guessed the trend correctly and made the right entry!

Strange, isn't it! But this is truly the most valuable lesson for me, and I have also fallen into this mistake many times - overconfidence!

Let me give you an example to make it easier for you to understand:

I predict that the current price of $BTC will drop another step, if it were my past self, I would short (because the current trend is downward, right?). But now I advise against shorting and suggest going long for the following reasons!

1. Shorting at entry 115-116 is bad when the price has already dropped too much by 2-3 parts - approaching strong support, easily reversing quickly without a chance to react.

2. The larger trend is upward. If by chance there is news that pushes the price strongly from 115 straight up (without returning to the target at 112.8), then you will hold the position until it burns out with no way back.

3. If you short at 115 - you will have to invest to hold. At that time, you won’t have enough capital to follow your long-term long plan!

4. The long short signals are unclear at the 115 level - if you rush to close your position, you will lose money quickly!

5. The short price range is very small, around 2000, which is not worth trading off a bullish trend of 5000-10000 later.

Okay, trusting yourself is good. But remember, the market is very difficult to profit from; if you want to profit from both long and short, with luck, you might win, but with bad luck, you might hold until your account burns out!

In summary: the bullish trend is coming soon, wanting to short is not forbidden, but for me, it’s about to drop to the bullish boundary, and shorting just for a small price gain is not advisable!

***Mindset for beginners about capital management skills and order placement!