The wealth stories in the crypto space always stir people's emotions. Some become rich overnight, while others lose everything. But the reality is that 90% of people ultimately lose money. Why? Is it bad luck, or is the market unfair? In fact, the answer is simple: the vast majority are swayed by emotions, and there are fundamental problems with their trading methods +.
Today, I will reveal this cruel truth to you and tell you how to truly stand on the winning side of the market.
The four major culprits of losing money.
1. Frequent trading: giving money to the market every day.
The fluctuations in the crypto space are significant, and many people think that as long as they grasp the ups and downs, they can make a lot of money. However, the reality is that frequent trading will only trap you deeper.
Accumulating fees: trading dozens of times a day may seem like small gains, but the high fees have already eaten up your profit.
Monitoring anxiety: FOMO when it rises, panic sell when it falls, ultimately becoming a puppet of market emotions.
Short-term traps: the crypto space is not a casino, but a battlefield of capital games; short-term operations + can only turn you into 'chives.'
2. Leverage gambling: amplifying gains? No, it amplifies losses.
'I use 20x leverage, and I’ll run as soon as I double!' What happened? The market fluctuates 5%, and you directly get liquidated +.
The essence of leverage: it is a double-edged sword, not amplifying profits but amplifying your risks.
'War God' myth: many people fantasize about using leverage to 'bet small to win big,' but the reality is that most people only accelerate their exit.
Institutions do not play with leverage: have you ever seen a top institution using leverage at full capacity every day? They focus on long-term layouts, not short-term speculation.
3. Chasing highs and cutting losses +: a perfect interpretation of buying high and selling low.
During a big rise, everyone rushes into the market; during a crash, they panic-sell. You think you are trading coins, but in reality, you are giving money to the market makers.
During a big rise, you FOMO into the market, ending up at a high point, becoming the one left holding the bag.
During a decline, you panic sell, only for the market to rebound, and you regret it immensely.
This is human nature, and in the crypto space, it is best at exploiting human nature for profit.
4. 'All-in belief': going all in, gambler's mentality.
Many people are superstitious about a certain project, thinking 'this time it will definitely work.' But those who truly make money with digital assets never go all in.
During a bull market with Bitcoin +, can you withstand a 90% drawdown?
Can you accurately escape the peak after a huge rise in altcoins?
The reality is, 99% of people cannot resist, ultimately losing a net of 1,200.
Since ordinary investors always lose money, then who is making money? The answer is simple: the winners in the market are institutions and top traders +.
And patiently waiting for opportunities with funds. They use a mature trading system, steadily and not relying on luck to gamble.
In the Smart Community, we always emphasize institutional-level trading logic, which includes:
1. Capital management +: the principal is always the most important.
We will never go all in on a certain coin, but will allocate positions reasonably, allowing for ample maneuvering space.
.1 + 3 model, EA arbitrage model, dark horse model, tracking institution model: follow institutions into the market, institutions eat meat, we drink soup.
Pyramid building +: dynamically adjust positions, proportioned at 1:3:6.
Capital allocation strategy: each loss will not affect overall returns, ensuring long-term survival.
2. Emotional control: market fluctuations ≠ you must take action.
The market is always creating 'emotional traps,' but institutional traders are not led by emotions; they follow established strategies, not the market.
Noise.
Do not monitor the market: reduce attention to the market to avoid decisions influenced by short-term fluctuations.
Preset strategies: all buying and selling + are made in advance, not impulsive actions.
Take profit and stop loss +: no matter how the market moves, we always execute according to discipline, rather than relying on intuition to trade.
3. Data-driven decisions, rather than emotional trading.
Institutions do not trade based on feelings; they use data + strategies. The trading system in the Smart Community is also always based on data analysis, rather than
Relying on luck.
Technical + fundamental analysis + to ensure that the logic of buying is solid enough.
Market sentiment indicators +, identify the behavior of market makers, and avoid being misled by the market.
Long-term holding and short-term strategies to avoid excessive volatility brought by short-term trading +.
The core of making money:
Understand the market, rather than follow the market.
The essence of making money has never been relying on short-term fluctuations, but understanding the logic behind the market.
The core of trading is survival; only by surviving longer can you wait for the big opportunity.
Short-term fluctuations are noise; what truly makes money is the long-term trend.
Emotional operations are the root of losses, while institutional trading relies on rationality + discipline.
If you are also confused! Can't understand the market! Emotional management is inadequate! Feel free to reach out to me for learning!
