As a cryptocurrency analyst with five years of experience, I understand this pain all too well. I've seen too many traders who can explain 'head and shoulders' and 'double bottom' convincingly, even accurately calculating the support and resistance levels of a certain coin, but once it comes to actual trading, they suddenly seem like a different person. At the lows, they always feel it will drop further, clutching their money and afraid to enter the market; at the highs, seeing others making profits, they get impulsive and jump in, only to see the price drop immediately after buying, and in the end, they can only sell at a loss.
In fact, when it comes to trading, technique is just a stepping stone; what really allows you to make money is self-control. It's like losing weight; everyone knows to 'eat less and exercise more,' but when it's late at night and you come across food videos, how many can resist ordering takeout? Trading is the same; you clearly know that 'chasing highs and cutting losses' is a big taboo, but you just can't control your hand.
There are always people who think about getting rich quickly with small funds through short-term trading, staring at the market every day, trying to catch a few points of fluctuation. But do you know? The frequent trading fees and slippage are like an invisible hand, slowly gnawing away at your principal. Not to mention, short-term trading is easily influenced by emotions; a little greed can lead to being trapped, and a little fear can lead to cutting losses, ultimately reducing your capital.
The friends I know who have really succeeded with small funds are all those who can endure. They don't stare at small fluctuations every day; instead, once they identify a trend, they hold firmly. It's like a certain cryptocurrency last year that started rising from a low level, experiencing several pullbacks in between. Many people sold halfway, but my friend held on and ended up making several times the profit.
Now let's talk about the leverage issue that everyone is concerned about. Many people calculate 'when can I get liquidated' before opening a position, which is not risk control at all. True risk control is to think in advance 'how much can I lose at most on this trade' before opening a position. Once you reach this stop-loss point, no matter how painful it is, you must stop loss immediately. I have seen too many people end up in a mess because they couldn't bear to stop loss.
To be honest, in the crypto market, no one can predict the market correctly every time. No matter how good the technology is, there will be moments of misjudgment. But as long as you have a complete trading system, strictly follow the rules, and control your impulses, you can survive in this market and even make money.
Don't always blame the market for being bad, and don't always say that the dealers control the market. Most of the time, we are losing to ourselves. If you are also confused in trading or want to learn more trading skills, feel free to leave a message in the comments, follow me, and I will share more practical crypto trading tips to help you avoid those easy pitfalls!
