The truth about why ordinary people cannot make money in the cryptocurrency market is due to the lack of ability to grasp entry timing and escape peaks!
Many times, if we want to do something well or succeed in a venture, we absolutely cannot do without the right timing, geographical advantages, and harmony among people.
It is the same for investments in the cryptocurrency market; whether we can gain stable and continuous profits in the long term depends first on our knowledge and ability.
Next is what I refer to as timing. Timing is crucial for us; if you can make the right choice at the right time, your efforts will yield twice the result with half the effort.
And if the timing you choose is not right, whether or not you will achieve results is unknown.
17 psychological pitfalls of loss in trading.
1. Fear of stop-loss, fear of loss is often due to traders' fear of failure and unwillingness to accept losses. Such traders tend to have strong self-esteem.
2. Close positions in advance. Once closed, you will no longer feel anxious. The reason for anxiety is the fear of position reversal, and traders need quick reassurance.
3. Wishful thinking; traders do not want to control their trades and do not want to take responsibility for them. Traders lack the ability to accept reality; after a loss, they feel angry and believe the market has set traps for them, being wishful about a specific trade. Being self-satisfied when successful or demanding the market prove them right can lead to losses.
5. Trading with money you cannot afford to lose or borrowed money. Treating a trade as a last resort. Traders who want to succeed or fear missing opportunities can fall into this trap. Those who do not follow discipline and are greedy also fall into this trap.
6. Averaging down. Traders do not acknowledge that their trades are losing and hope to break even. Such traders tend to have strong self-esteem.
7. Impulsive trading; traders easily get excited, become addicted, and enjoy gambling. Such traders always trade based on intuition. When there are no trades, such as on weekends, they feel restless and are obsessed with trading.
8. After making money from trading, traders are overjoyed and feel proud, believing they can control the market. 9. Account funds cannot appreciate—profits are minimal. In this case, traders lack motivation to make money, usually due to psychological reasons such as lack of confidence.
10. Not adhering to one's trading system; traders do not believe their trading system is useful, or they have not seriously tested it. Perhaps this system does not fit their personality, or they need the thrill of trading, or they think they cannot find a successful system.
11. Over-predicting trading results, traders fear losses, fear making mistakes, and end up helpless. Perfectionists are prone to problems; they want guaranteed results and do not understand that losses are part of trading. They do not accept the risks of trading and do not accept unknown outcomes.
12. Incorrect trading volume; traders dream that this trade will make money, ignoring risk and the importance of capital management. Perhaps traders do not want to take responsibility for risk or are too lazy to calculate the appropriate trading volume!
13. Overtrading. Traders want to conquer the market, possibly due to greed, wanting revenge on the market after a loss. This is similar to impulsive trading; see point seven!
14. Fear of trading, lacking a system; traders feel uneasy about risk and unknown outcomes, fearing loss and ridicule. Perhaps traders need self-control and lack confidence in their trading system or in themselves.
15. On non-trading days, traders feel anxious due to psychological factors such as anger, fear, and greed, causing their emotions to fluctuate. Traders overly focus on the trading results and do not study the trading process and related techniques. They are too concerned with money. Unrealistically high expectations.
16. Trading indiscriminately across all varieties, wanting to operate in any market that shows a signal, fearing to miss any signals, in choosing trading varieties, there should be two principles:
The first principle is 'Do not trade unfamiliar varieties and markets.' The technical trends of the markets you participate in must fit within your technical analysis framework.
The second principle is 'Do not trade in inactive markets,' because the poorer the liquidity of the market, the easier its price movements are to be manipulated. Recklessly participating in such a market is equivalent to walking into a trap. Trading varieties with good liquidity and active trading, with genuine and natural trends, are preferable.
17. Being overly obsessed with finding the perfect entry timing, longing for the price to immediately detach from the cost and generate floating profits. If the price temporarily traps you after entry, it becomes very uncomfortable and difficult to endure, leading to a desire to cut losses and exit positions, obsessively pursuing perfection in trading.
In theory, if trading techniques precisely solve the timing of entry and exit issues, self-management would be completely unnecessary.
This is like a swordsman with infinitely high skills who can defeat all opponents. However, in reality, there are no swordsmen with infinite skills, and even the strongest will encounter equally strong opponents. Similarly, even the greatest traders have limitations and flexibility in their trading skills.
Let's reveal how the major players in the cryptocurrency market manipulate the market to easily achieve profit myths! In the vast ocean of digital currency, there are always mysterious forces controlling the tides of the market behind the scenes.
These forces are commonly referred to as 'operators' or 'big money.' They manipulate the cryptocurrency market with strong capital and superb trading skills, achieving profit myths time and again.
So, how do these operators control and dominate the market? Today, let's uncover this layer of mystery together.
1. Accumulation phase: Clever layout, waiting for the right moment. In the accumulation phase, operators typically employ various methods such as low-price accumulation, sideways accumulation, or high-price accumulation. They carefully plan to create panic or entice retail investors to hand over cheap chips, accumulating enough foundational chips for themselves.
At this stage, operators patiently wait for the right moment, and once the market turns, they strike quickly.
2. Washing phase: Cleaning up floating chips to prepare for the rise. Washing is an important part of the operators' process of controlling the market. They create fear in holders by controlling the wash zone or through oscillating washes, leading them to sell their holdings.
In this way, operators can easily shed trend-following positions and make full preparations for the subsequent rising phase.
3. Rising phase: Full firepower, crazy rise. After completing the accumulation and washing phases, operators welcome the most exciting rising phase.
They quickly raise the price with strong capital and superb trading skills, prompting retail investors to buy at high prices. At this point, the market atmosphere is lively, and retail investors flock into the market, driving the market price continuously up. The operators then take the opportunity to make substantial profits.
4. Distribution phase: High position distribution, clever retreat. Once the price rises to a certain level, the operators begin to consider distributing their holdings. They usually choose to distribute chips at high positions, allowing retail investors to take over.
At this stage, operators will use various means to entice retail investors to buy, such as creating market rumors, accelerating price increases accompanied by significant volatility, etc.
Once retail investors start buying in droves, operators quickly withdraw from the market, leaving retail investors to face market risks alone.
Summary: Through careful planning and operation of the above four phases, operators successfully achieve their goals of dominating and controlling the market in the cryptocurrency realm. With strong capital and superb trading skills, they maneuver various digital currencies with ease in the market.
However, we must also understand that investment carries risks, and market entry requires caution. When investing in cryptocurrencies, we must maintain rational thinking and not blindly follow trends or believe rumors. Only then can we achieve steady profits in the market!
Finally, here are 21 trading tips for everyone:
1. Money is not made through frequent trading but through patiently 'sitting' on it.
2. Throughout my financial career, I have witnessed many failures due to disrespecting risk. If you do not take risks seriously, it will come back to destroy you.
3. Allowing losses to expand is the most serious mistake made by most investors.
4. A top trader taught me something very important: you have to be willing to make mistakes from time to time; there is nothing wrong with making mistakes. He told me to try to make the best judgment, and if I'm wrong, then make the best judgment again, and if I'm wrong again, then make the best judgment a third time, and that will double your funds.
5. Trading has taught me a painful lesson. It was at that moment that I said to myself: 'Big fool! Why take such enormous risks in a single trade? Why make life painful instead of pursuing happiness?'
6. Good trading has three key factors: (1) stop-loss; (2) stop-loss; (3) stop-loss. If you can strictly follow these three rules, you may have a chance to succeed in trading.
7. If I lose in the market, I will exit immediately. It does not matter what market I am trading in. I will exit because once there is a loss, it becomes difficult to make objective trading decisions. If the market completely deviates from your expectations and you insist on staying in, you will eventually be eliminated.
8. Honestly, I never look at the market; I only focus on risk, return, and capital.
9. When a trade is successful, I think: 'I made the right decision.' But if I was wrong, then there's nothing left. I need to accumulate capital because there will always be another trade.
10. I always limit risk, so I do not need to worry about anything else.
11. The key to successful trading is controlling emotions. If intelligence were the key, a large number of people would already be profitable. I know this sounds a bit cliché, but the easiest reason for traders to lose in financial markets is that they cannot stop losses in a timely manner.
12. I believe that investment psychology is the most important factor so far, followed by risk control, and finally considering where to buy and sell.
13. If the market is against me, I will exit immediately. If it's in my favor, I will continue to hold... Risk control is the most important thing in trading. If a losing position causes you negative emotions, it's simple: exit quickly because you will always have a chance to re-enter the market.
14. I realized early on that there is nothing new on Wall Street. There cannot be new things appearing because the history of speculative trading is too long. Anything that happens in the market has happened in the past and will happen again in the future. I have never forgotten this.
15. Learn to accept losses. The most important prerequisite for making a profit is not letting losses exceed your tolerance.
16. Regardless of market conditions, continuously trading is the root cause of losses for Wall Street and many professional traders. They have a sense of urgency to make a profit every day, even if they are only receiving a regular salary.
17. The goal of successful traders is to make the best trades. Profit should come second.
18. Over the years, I have found it very important to take a few days off to relax after making a profit in the market. People tend to keep pushing until they can no longer make a profit. But experience tells me that taking a good break along the way can actually prolong this momentum of success.
19. Once I have a loss, I will continuously reduce my trading input... My capital management skills are very conservative. I never invest the majority of my account funds, let alone all my assets.
20. If you are a good trader, it only means that out of 10 trades, you may have made the correct decision 6 times. You cannot achieve 9 correct decisions out of 10.
21. It takes 20 years to build a career, but only 5 minutes to destroy it. Understanding this can change your approach to doing things.
In recent days, Brother Sheng has been preparing to launch a divine play! If you are quietly researching practical operations in the cryptocurrency circle and have not achieved ideal results, it may be worth following (Crypto Brother Sheng) for the latest intelligence and trading skills in the cryptocurrency market!
