Why do 90% of retail investors in the crypto market fail to make big money? The fatal mistakes lie in the repetitive actions you take every day.

Do you find yourself staring at the market until 3 AM, fantasizing about capturing profits from every candlestick? Do you envy short-term trading experts, thinking you can also sell high and buy low to make big money? However, the reality is harsh: frequent trading often leads to greater losses.

Data shows that traders who make 100 trades a month, averaging 3 trades a day, see their account funds shrink after a year. A 2023 report from cryptocurrency exchanges shows that among retail investors with an average daily trading volume exceeding $10,000, 83% have a negative annualized return. When you are obsessed with 5-minute candlestick fluctuations, you may have already fallen into three major traps:

Trap 1: Fee Black Hole

Data from a leading exchange shows that users who trade 10 times a day have fees that account for 47% of their principal over the year. Frequent trading is like cutting off an arm before the battle; your principal is consumed by transaction fees.

Trap 2: Emotional Hell

With every trade, your brain releases dopamine, bringing pleasure, but it also gradually erodes your rationality. Impulsive decisions often lead to losses; emotional trading is a retail investor's fatal flaw.

Trap 3: Opportunity Cost Loss

In the last bull market, I caught the 100x coin DOGE, but some people exited at 2x, some at 5x, and others at 10x. The same market conditions lead to different results based on individual capacities. Frequent trading causes you to miss out on real opportunities.

Why can’t retail investors make big money?

1. Overtrading: Frequent operations consume principal and increase transaction costs.

2. Emotional Decision-Making: Chasing highs and cutting losses, lacking rational judgment.

3. Lack of Patience: Unable to hold onto potential coins, missing long-term gains.

4. Blindly Following Trends: Believing in news without independent analysis.

How to avoid these mistakes?

1. Reduce Trading Frequency: Focus on medium to long-term opportunities, avoiding disruption from short-term fluctuations.

2. Create a Trading Plan: Clearly define entry and exit points, and strictly adhere to it.

3. Control Emotions: Stay calm, not swayed by market sentiment.

4. Continuous Learning: Improve understanding and grasp market principles.

My Viewpoint:

In the crypto market, the ones making money are always a minority; frequent trading will only make you a “leek.” Rather than chasing short-term profits, it’s better to calm down and learn, seizing real opportunities. The 100x coins in a bull market are not coincidences; they require patience and wisdom to discover and hold.