When it comes to cryptocurrency trading, the biggest source of losses is not the market, but human nature.
The root cause of losses is often a problem with people’s “mentality”.
You might think that losses are simply a result of buying too high and selling too low. That's not entirely true. Bitcoin's price is inherently volatile, and while some losses are indeed due to blindly following the market's upward and downward trends, or entering the market at the wrong time, the fundamental problem lies in impatience and irrationality. A market as volatile as Bitcoin's, in particular, can often trigger emotional fluctuations among investors. These fluctuations aren't simply reflected in price fluctuations; deeper fluctuations often stem from investors' inner anxiety, greed, and fear.
Many times, when first entering the market, investors rush in, watching Bitcoin's price soar from a few thousand to tens of thousands of yuan. They think, "I'll make a killing now!" But once the market fluctuates, especially after a drop, anxiety sets in. Fearing missing out, they hold onto their coins, hoping for a rebound. However, when the market rebounds, they realize they've wasted their time, or even experienced further declines, compounding their losses.
At this time, the psychological "stop-loss" mechanism becomes ineffective.
A psychological "stop-loss" mindset is something every investor should have—when you realize you might be losing money or the market has taken an unfavorable turn, you should make a timely decision to stop your losses. However, when the market is unstable and prices fluctuate, many people fail to grasp the importance of timely stop-losses, instead clinging to the illusion that "it will rebound." This leads to blind faith, ignoring the true market trends and ultimately becoming trapped.
Another root cause is blind optimism and greed towards the market.
Did you know? Many people's initial motivation for cryptocurrency trading isn't the investment itself, but rather stories of others making money. Seeing others profit from buying Bitcoin tempts them to give it a try, driven by the desire to "make a killing." This mentality stems from greed: the desire for high returns at once while ignoring market risks. You think you can capitalize on a rising market, but in reality, the market won't treat you kindly just because you're looking for profit.
Some people rush in without even doing basic research.
Investing isn't just about intuition or a "recommendation from a friend." You must have a solid understanding of the market and be aware of its potential risks. If you blindly follow the trend after hearing others make money, it's difficult to make accurate judgments no matter what price you buy. Cryptocurrency trading is like crossing a river by feeling the stones. Without sufficient knowledge and patience to analyze the market, you're likely to fall into the trap of the unknown.
Have you ever felt this way? When cryptocurrency prices plummet, you begin to doubt whether you've made the wrong choice, or even wonder if you'll lose everything. Market uncertainty is what it is: it makes it impossible to predict the next direction. However, no matter how much you worry or doubt, you can't change the market's trajectory. The only thing you can do is adjust your mindset and avoid overreacting out of fear. Every drop in value may indicate a lack of patience and rationality in the market, ultimately letting your anxiety drag you down.
You may have a temporary "lucky mentality", but this mentality often brings more losses.
When Bitcoin shows signs of rising again, you might imagine the market will continue to rise, holding on without taking profits. And when the downward trend becomes more pronounced, you might cling to the hope that it will rise again next time and hold on a little longer, only to see your losses worsen. This mentality is precisely the result of the "lucky mentality" at work. You constantly imagine that the next opportunity will be a good one, but you often miss the best opportunity to exit, ultimately watching your losses pile up.
In fact, losses from cryptocurrency trading are often the result of a battle of wits and courage with oneself.
You might wonder, are these losses truly inevitable? Actually, they aren't. Many losses aren't caused by the market betraying you, but rather by your inability to properly control your emotions and decisions in the face of market fluctuations. Perhaps you didn't set a stop-loss order, or perhaps you didn't recognize the situation quickly enough, letting your mindset cloud your judgment. Ultimately, what you can control isn't the market's ups and downs, but your reaction to those fluctuations.
Therefore, the root cause of losses in cryptocurrency trading largely stems from misunderstandings about the market, particularly an excessive focus on price fluctuations. Cryptocurrency trading isn't a gamble; it requires calmness, a rational approach to market fluctuations, and adherence to principles, rather than emotional sway. Investing requires clear plans and goals, not just buying when bullish and selling when bearish. Rather, it requires a balanced mindset to navigate market fluctuations.
Most people lose money not because the market is bad, but because of the huge information gap.
1. Winners in the cryptocurrency world never rely on luck
Do you think people who get rich quickly rely on "holding spot" or "high-multiple contracts"? Wrong, there are only three types of people who really make money:
✅ Technology: For example, programmers can find vulnerabilities in a project in advance, or participate in testnet mining and cash out directly after the token is launched. One guy made $500,000 last year by testing nodes for a new chain at zero cost.
✅ Resource-driven people: People who have traffic, a strong community, and can help project owners with marketing. Do you know how much some "calling tycoons" charge to promote a coin? Starting at 50,000 U, and the cost of the tokens they receive is much lower than yours.
✅ Information Party: People who can get insider information in advance. For example, when an exchange is about to list a new coin, insiders have already bought up enough chips at a low price in the over-the-counter market, just waiting for the listing to explode and cut the leeks.
2. Why are ordinary people always being cut?
Trap 1: What you think is "good news" is actually "bad news"
A certain coin suddenly surges in value, with social media and media hyping it up like crazy. You're tempted to buy it, but what happens? The market maker has already placed a sell order at a high price, waiting for you to enter the market and dump the stock.
Trap 2: Contracts are like casinos, 99% of people will lose
"Open 100x leverage and you'll have financial freedom!"—stories like these are just for fun. I've seen countless people wipe out their positions overnight, losing even their principal. Exchanges love gamblers because they earn commissions regardless of whether the market goes up or down.
Trap 3: Small Currency = High-Risk Lottery
The value of an animal or celebrity coin has skyrocketed 100-fold. Are you wondering, "Will I be the next one to buy?" Be warned: these coins have extremely poor liquidity. After market manipulation, you can't sell them even if you want to, and ultimately, you'll just have to watch them plummet to zero.
3. How should ordinary people play?
Don’t touch contracts! Don’t touch small currencies! Use your spare money to buy some BTC or ETH and hold it for the long term. It’s better than messing around.
Learning to look at on-chain data (such as the movements of large-scale wallets and the inflow and outflow of funds on exchanges) is more reliable than looking at K-lines.
Don’t believe in “teachers’ guidance”. If there is really a way to make money, why would they tell you?
Improve your cognition instead of gambling on luck. In this market, people with higher cognition will always make money from those with lower cognition.
The last truth
If you have no technical knowledge and insider information, but still want to get rich quick by speculating in cryptocurrencies, that's no different than going to a Macau casino. Only a few people make money in the cryptocurrency world; the majority are just fuel. Invest rationally and don't let yourself become the "protagonist" who gets ripped off.
If you plan to invest in the cryptocurrency world, please take a few minutes to read my answer word for word, because it may save your life and your family.
Thousands of once happy families ended up broken up because of the unattainable dream of making a fortune in the cryptocurrency world.
I believe that the reason I can continue on this path of trading is because I have been diligently studying, not only understanding the basics, analyzing news, but also researching technical indicators. This has helped me develop a stable and profitable trading system!
I spend more time fishing and exercising. From investing 50,000 yuan in the cryptocurrency industry to making 10 million yuan, then to being in debt of 8 million yuan, then to making 20 million yuan in profit, and now to being financially free.
Personally tested method: Last year, I also used a small account of 2000U to make nearly 2 millionU, which was 1000 times more in one year!
A must-read for cryptocurrency beginners: Avoid wasted money! A four-step cryptocurrency trading method that can snowball even with a small amount of capital
The first step is to only recognize the golden cross signal
Don't get distracted by all the news and buzz. Open the daily chart and focus solely on the MACD indicator. Seeing a golden cross, especially one above the zero axis, is like discovering a treasure. Once this signal appears, don't dwell on other factors; simply add it to your shortlist.
Step 2: Use a moving average to determine buy and sell
Switch to the daily chart and focus on a single daily moving average. When the price remains firmly above the moving average, don't hesitate; enter the market decisively. Once it falls below the moving average, sell your position immediately, regardless of your current mood. Market trends are complex, but this line acts like a baton, guiding you when to enter and when to exit.
The third step is to know how to buy and sell
After buying, don't just sit back and relax. Consider trading volume: If both the price and volume are above the moving average, go all in. When the price rises by 40%, sell one-third to lock in profits. When it rises by 80%, reduce your position. If it falls below the moving average, sell all your remaining positions, leaving nothing behind.
Step 4: Stop loss quickly, accurately and ruthlessly
Many people lose money because they're too soft-hearted and unwilling to cut their losses, ultimately sinking deeper into the trap. The core of this method is strict discipline—if the price falls below the daily moving average, exit the market immediately without hesitation.
This method seems simple, even a little "silly", but it is practical and effective.
While you might not get rich overnight, the advantage is that it's stable and reliable, and you can sleep well at night. To make a comeback in the cryptocurrency world, you don't rely on luck, but a reliable trading system.
I'm Lao Chen. I've experienced multiple bull and bear cycles and have extensive market experience in various financial sectors. Follow Lao Chen and, here, you'll penetrate the fog of information and discover the real market. Seize more opportunities to unlock wealth and discover truly valuable opportunities. Don't miss out and regret it!
I have been trading in cryptocurrencies for more than 10 years and have tried 90% of the market indicators. The only indicator and strategy I have been using now is (bearish pregnant pattern), with a winning rate of up to 95%. Every time I see this pattern, I immediately place an order, and I don’t place an order if I don’t see the pattern!
Using this set of pattern indicators to make trades: In less than a year, I went from 10,000 U to over 1.1 million U today (this method is especially suitable for newbies in the cryptocurrency world)
What is the Bearish Harami pattern? How can you identify and use it in trading?
Content
1 video on how to identify and use the Bearish Harami candlestick pattern
2 What is the Bearish Harami candlestick pattern?
3 Structure of the Bearish Harami candlestick pattern
3.1 Variant of the Bearish Harami candlestick pattern
4 Meaning of the Bearish Harami Pattern
5 How to Trade Binary Options Using This Candlestick Pattern
5.1 Strategy 1. Combining with RSI indicator
5.2 Strategy 2: Combining with Resistance
What is the Bearish Harami Candlestick Pattern?
Harami is a common name for a candlestick pattern shaped like a pregnant woman. A bullish Harami candlestick pattern indicates a price reversal from falling to rising. In contrast, a bearish Harami candlestick pattern signals a reversal from up to down.
These two candlestick patterns are an excellent and highly accurate signal pair that traders always look out for when they appear on the price chart.
What is the Bearish Harami Candlestick Pattern
Structure of the Bearish Harami candlestick pattern
A standard candlestick pattern consists of 2 candles.
The first candlestick is a strong green bullish candlestick.
The second candle is a red (bearish) candle inside the first candle.
On Japanese candlestick price charts: It usually appears at the end of an uptrend and predicts a future price drop. Patterns with larger amplitude will give more accurate bearish signals.
Some of the occurrences of this particular candlestick pattern on Japanese candlestick charts.
Patterns on Japanese candlestick price chart
Sometimes, a bearish harami candlestick pattern appears during a downtrend. This is a sign of a continuation of the downtrend.
Japanese candlestick patterns
Variant Bearish Harami candlestick pattern
The variation pattern has a slightly different structure compared to the standard pattern. The second candlestick is a spinning top or pinbar. This variation candlestick pattern is also a very clear signal for experienced traders when it appears.
Variant Bearish Harami candlestick pattern
Meaning of the Bearish Harami Pattern
Combine two candlesticks with a Bearish Harami candlestick and you get the Bearish Pin Bar (also known as a shooting star). These are popular candlesticks that signal a bearish trend. This explains why they often appear at the end of an uptrend, signaling a price reversal from upwards to downwards.
Meaning of the Bearish Harami Pattern
How to trade using this candlestick pattern
The Bearish Harami candlestick pattern is a special candlestick pattern that signals the beginning of a significant price drop. Traders view this candlestick pattern as confirmation for opening a downtrend order. To fully utilize this candlestick pattern, traders often combine it with trend indicators. Let's look at some effective combinations below.
Note: This is a bearish reversal pattern. Therefore, when using it, you should only open DOWN orders as predicted by the pattern.
Strategy 1: Combined with RSI indicator
The RSI is a very good indicator for analyzing price trends. When the RSI is in overbought territory, prices tend to fall. Combined with the appearance of a bearish harami pattern, this can be a very good profit entry signal.
Conditions: 5-minute Japanese candlestick chart, RSI indicator (14). Order with expiration time of 15 minutes.
Trading formula:
+Open DOWN when the RSI indicator is in the oversold area and our candlestick pattern appears.
Combined with RSI indicator
Strategy 2. Integrate with resistance
Resistance is an area where the price is likely to fall back if it hits it. If the price forms a Bearish Harami pattern, the price is likely to fall. You can then open a down order based on that signal.
Conditions: 5-minute Japanese candlestick chart, resistance area. Expiration time is 15 minutes or more.
How to open an order:
+ Open a DOWN order when the price touches the resistance level and our candlestick pattern appears.
Combined with resistance
Things to note when using this pattern in trading
The Bearish Harami candlestick pattern is only a sign of a bullish reversal. We need to consider other factors before deciding to open a trade.
The larger the candlestick margin, the higher the accuracy. The signals will also become more reliable.
The effectiveness of candlestick patterns is greatly reduced when there is some volatile news in the market. It is better to use this candlestick pattern during trading sessions when there is no news.
This is a very popular candlestick pattern for traders to follow the trend. Get familiar with this special signal in a demo account to understand it better.
These four shortcuts to "losing everything" can be called the ultimate nightmare of speculators. Many people only understand what "quick come, quick go" means after falling into these traps.
The instructor disassembled the logic and lessons behind these fatal "shortcuts" one by one:
1. Buying the rise and selling the fall: Emotions dominate, and selling at a loss becomes an addiction
The weaknesses of human nature are fully exposed in the market. When prices soar, everyone rushes in, fearing to miss the "last train," and ends up buying at the peak. But when the market falls, unable to bear the paper losses, they panic-sell, becoming the "buyers" who exit at the bottom.
Critical point:
• Driven by emotions and losing rational judgment.
• During market fluctuations, retail investors are often the last to receive information, and chasing rising and falling prices is basically tantamount to giving away their lives.
response:
• Avoid blindly following the trend and always remember: the faster the market rises, the harder it will fall.
• Set reasonable take-profit and stop-loss points, plan buying and selling strategies, and stick to them.
2. Futures Leverage: Double Faster, Blow Out Faster
Futures leverage amplifies both returns and risks. If a market reversal occurs due to a miscalculation, your account funds can be instantly liquidated. Even more frightening, losses can exceed your principal.
Critical point:
• Leverage is a double-edged sword and can easily backfire, especially in highly volatile markets.
• The mentality is unbalanced, the more losses you suffer, the more you gamble, and eventually you are exhausted in the cycle of “increasing positions-margin explosion”.
response:
• Learn to control your position, don’t go all in or increase leverage to the limit.
• If you do not have extensive trading experience and strict risk control awareness, try to stay away from futures.
3. Financing and Currency Lending: Borrowing Chickens to Lay Eggs, Losing the Principal
Investing with borrowed money may seem like a good way to maximize returns, but it's actually cutting your own flesh with someone else's knife. If market conditions don't match expectations, the combined impact of financing costs and principal losses can lead to a desperate situation.
Critical point:
• Financial leverage ruthlessly magnifies losses.
• Borrowing money for investment places a heavy psychological burden on people, making it easier to make irrational decisions.
response:
• Always use spare money for investment and avoid using borrowed funds.
• If financing is used for speculative operations, it is basically equivalent to "gambling".
4. Short-term magic operation: one thought to heaven, one thought to hell
While short-term trading may seem like a "high-frequency profit," it actually demands a lot of skill and mental fortitude. Market volatility can easily lead to a chaotic situation. Most people struggle to keep their earnings, not just because they can't make money.
Fatal points: • High-frequency trading requires extremely strong execution and discipline, and emotional operations are fatal.
• Transaction costs (fees, spreads, etc.) accumulate, eating into net profits.
response:
• If you are not a professional trader, avoid frequent short-term trading.
• Long-term investment is more suitable for ordinary people because time is your best friend.
In summary, these four paths to ruin are all, without exception, an amplification of human nature: greed, fear, impulsiveness, and a desire for luck. The market has cruelly taught us that the pursuit of quick riches often only leads to faster ruin. The essence of investing lies in rationality, patience, and self-discipline.
If you want to win the market in the long run, you might as well remember this saying: "Less is more, and stability is king."
If you want to reach the pinnacle of life, remember these four avenues:
1. Work steadily: a solid foundation and less wind and waves
2. Investing spare money: Money makes money more diligently than people. Growing assets through investment is an important means to achieve financial freedom.
• Investing is about managing expectations, not pursuing sudden profits. • Investing your spare cash can reduce stress and help you navigate market fluctuations more calmly. Remember, the essence of investing is long-term lifestyle optimization, not gambling-style get-rich-quick schemes.
3. Long-term holding:
• Almost all real wealth in the world comes from the compounding effect of time. • Long-term holding tests patience, conviction, and trend judgment.
4. Eat and sleep on time:
Life is not a sprint, but a marathon. The one who reaches the finish line is the winner.
Playing around in the cryptocurrency world is simply a battle between retail investors and bankers. If you don't have cutting-edge news and first-hand information, you will be slaughtered! If you want to work together to plan and harvest the bankers, you can come to me.
There is a saying that I strongly agree with: the boundaries of knowledge determine the boundaries of wealth, and people can only earn wealth within the boundaries of their knowledge.
You must have a good mentality when trading cryptocurrencies. Don't let your blood pressure soar when there is a big drop, and don't get carried away when there is a big rise. It is more important to lock in your profits.
For people who don’t have many resources, being down-to-earth is the irrefutable way of survival.
Giving roses to others leaves a lingering fragrance on your hands. Thank you for your likes, attention, and reposts! I wish you all financial freedom in 2025!
$ETH $BTC #加密市场回调
