The current market rhythm is very confusing, with frequent occurrences of baiting to go long or short. Many traders are oscillating back and forth in the market, ultimately not only failing to make a profit but also falling into a loss trap.
Why is the current market so difficult to operate in?
These days, whether it's Bitcoin, Ethereum, or other major coins, the market fluctuations are very severe.
Baiting to go long: prices suddenly surge, attracting investors to enter, but end up not breaking through and prices drop back.
Baiting to go short: breaking below key support lines, luring everyone into blind short positions, only to rebound suddenly and prices quickly pull back.
This kind of repeated washing out makes many people feel at a loss, especially those with weaker mindsets, who are easily 'dazed' in the waves of fluctuations.
Position control is the most basic survival rule.
The market during this period is high volatility; if position control is not good, it is easy to be 'washed out'.
Don't operate with full positions, even if you are confident in the market, maintain a certain cash flow to respond to fluctuations at any time.
Enter the market in batches, don't invest too much at once, diversify risks, and don't put all your funds on one position.
The best operating method is: when the market is volatile, stay calm, and wait for clear trend signals.
Set the stop-loss further away, adjust flexibly.
The situation you mentioned, where a line knocks out the stop-loss and then pulls back, is indeed very common.
Such fluctuations often occur within a short period when prices suddenly surge or drop; sometimes the market uses these fluctuations to wash out.
Therefore, don't set the stop-loss too tight; otherwise, it will be easily triggered by short-term fluctuations, resulting in unnecessary losses.
If the price rebounds after returning to a key support or resistance level, you can appropriately adjust the stop-loss position to give the market more time to verify the price trend.
Control your hands, don't rush in and out.
In this unstable market environment, controlling your hands is really more important than anything else.
Don't follow the crowd casually: the market's lure to go long or short is to make retail investors take opposite actions. Once you follow the crowd, you will usually be washed out.
Only trade based on your own judgment: wanting to enter upon seeing a rising wave and wanting to short upon seeing a declining wave often leads to missing the best timing. Be patient, wait for the price to clearly break through or retrace to key positions before acting.
Stay firm in your beliefs: if you have established a clear trading strategy, do not change your original intention due to the market's short-term fluctuations.
The current market is full of uncertainty, but that doesn't mean you can't make a profit. The key is to control your position, adjust the stop-loss, and stay calm.
Enter with caution, observe the trend signals before taking action;
Position control, maintain flexibility and operability;
Extend the stop-loss to avoid being scared out of the market by short-term fluctuations;
Control your hands, patiently wait for the market to give you clear opportunities.
