How I recovered my $70,000 loss with a strategy I learned in just 5 minutes
Not long ago, I was looking at my trading account in disbelief. Down $70,000.
The numbers didn’t seem real. My confidence was shattered. I thought maybe trading wasn’t meant for me...
But then, I stumbled upon something so simple, yet so powerful, that it completely changed my way of trading.
This is called the Rally–Base–Drop / Rally–Base–Rally strategy. And I promise you — if you can give me 5 minutes, I can teach you exactly how it works.
The Big Secret: Markets Move in Phases
Look at the chart above 👆. You will notice a pattern that repeats over and over in every market:
1. Rally → The price rises with momentum (buyers in control).
2. Base → The price pauses, goes sideways, and forms small candles (indecision).
3. Drop → The price collapses sharply (sellers take control).
It's not random. These 'bases' are where institutions and big money quietly place their orders. They don't buy or sell all at once — they accumulate in these areas.
That’s why these zones later act as supply and demand zones:
Supply Zone (Rally → Base → Drop) → The price falls again from here on its return.
Demand Zone (Drop → Base → Rally) → The price rises from here again on its return.
How I applied it
Once I understood this, I stopped chasing random breakouts and guessing tops or bottoms. Instead, I did three things:
Step 1: I marked each clear Rally–Base–Drop and Drop–Base–Rally zone on my charts.
Step 2: I only entered when the price returned to one of these zones.
Step 3: I placed my stop-loss just outside the zone and let the trade play out.
Suddenly, my trading became structured, disciplined, and professional. No more gambling — just pure market logic.
In a few months, my approach changed. Instead of accumulating losses, I started accumulating gains.
The same strategy that took me 5 minutes to learn was the one that helped me recover my $70,000 loss.
When you understand where the big players buy and sell, you stop fighting the market and start trading with it.
If you have struggled like I was — if you have blown accounts, suffered painful losses, or feel like giving up — this strategy could be the lifeline you need.