The Four Major Reasons for Losing Money
1. Frequent Trading: Giving Money to the Market Every Day
The cryptocurrency market is highly volatile, and many people believe that as long as they catch the ups and downs, they can make a fortune. However, the reality is that frequent trading will only trap you deeper.
• Accumulated Fees: Trading dozens of times a day seems like small gains, but the high fees have already eaten up your profits.
• Anxiety from Watching the Market: FOMO when prices rise, panic selling when they fall, ultimately becoming a puppet of market emotions.
• Short-term Traps: The cryptocurrency market is not a casino, but a battlefield of capital games; short-term operations will only turn you into 'chives'.
2. Leveraged Gambling: Amplifying Gains? No, it’s Amplifying Losses
"I’ll leverage 20 times and run when I double my money!" What’s the result? If the market fluctuates by 5%, you’ll be liquidated.
• The Essence of Leverage: It’s a double-edged sword, amplifying your risks rather than your gains.
• The 'War God' Myth: Many fantasize about using leverage to 'bet small to win big', but the reality is that most people will just accelerate their exit.
• Institutions Don’t Use Leverage: Have you seen any top institutions using full leverage every day? They focus on long-term planning, not short-term betting.
3. Chasing Highs and Cutting Losses: Perfectly Demonstrating Buying High and Selling Low
During a big rise, everyone rushes into the market; during a sharp drop, they panic-sell. You think you are trading cryptocurrencies, but in reality, you are giving money to the big players.
• During a big rise, you FOMO into the market and end up at the peak, becoming the one left holding the bag.
• When prices fall, you panic-sell, and when the market rebounds, you regret it deeply.
• This is human nature, and the cryptocurrency market excels at exploiting it.
4. 'All-In Belief': Going All-In, a Gambler's Mentality
Many people are superstitious about a certain project, thinking, 'This time it will definitely work.' But those who really make money with digital assets never go all-in.
• Can you withstand a 90% drawdown during a Bitcoin bull market?
• After a surge in altcoins, can you accurately escape at the top?
• The reality is that 99% of people cannot withstand it and end up losing everything.
Since ordinary investors always lose money, who is actually making money? The answer is simple: the winners in the market are institutions, top traders, and patient funds waiting for opportunities. They employ a mature trading system, steadily making progress, rather than gambling on luck.
In the Enlightened Community, we emphasize institutional-level trading logic, which includes:
1. Capital Management: Principal is Always the Most Important
We will never go all-in on a certain cryptocurrency but will allocate positions reasonably, allowing for ample maneuvering space.
• 1+3 Model, EA Arbitrage Model, Dark Horse Model, Tracking Institutions Model: Follow institutions into the market; when they eat meat, we drink soup.
• Pyramid Building: Dynamically adjust positions, with a ratio of 1:3:6.
• Capital Allocation Strategy: Each loss will not affect overall profits, ensuring long-term survival.
2. Emotional Control: Market Volatility ≠ You Must Act
The market is always creating 'emotional traps', but institutional traders are not led by emotions; they follow a set strategy, not market noise.
• Not Watching the Market: Reduce focus on the market to avoid being influenced by short-term volatility.
• Pre-set Strategies: All buying and selling are pre-formulated, not impulsive last-minute actions.
• Taking Profit and Cutting Losses: No matter how the market swings, we always execute according to discipline, rather than trading by intuition.
3. Data-Driven Decision Making, Not Emotional Trading
Institutions do not trade based on feelings; they use data + strategy. The trading system of the Enlightened Community is also always based on data analysis, not luck.
• Technical and Fundamental Analysis, ensuring the logic behind buying is solid enough.
• Market Sentiment Indicators, recognizing big player behaviors to avoid being misled by the market.
• Long Holding and Short Trading Strategies, avoiding excessive volatility caused by short-term trading.
The essence of making money is never through short-term volatility, but understanding the logic behind the market.
• The core of trading is survival; only by living long can you wait for big opportunities.
• Short-term ups and downs are noise; what truly makes money is the long-term trend.
• Emotional trading is the root of losses; institutional trading relies on rationality + discipline.
Do you want to continue being harvested by the market, or do you want to truly stand on the winning side? If you agree with our trading philosophy, welcome to join the Enlightened Community. Our institutional trading system has already helped many investors avoid traps and find stable profit methods.
In the cryptocurrency market, only those who understand the rules can truly make money! And I just happen to be someone who understands the rules.