(Chasing after a surge, cutting at the floor after a crash? 99% of beginners have stepped into this pit)
— It's not that you're not making an effort; it's that you always make decisions when emotions are at their peak.
If you often trade like this:
🔺 As soon as you see the coin rise, you rush in, and just after you buy, it crashes.
🔻 As soon as you see the coin drop, you panic and cut your position, and just after you sell, it rebounds.
… then you are not fighting alone.
This is the most classic 'reverse trading trap' in the crypto world— the fastest path to losing money.
🧠 Why do most people make this mistake?
Because what you are doing is 'instinctive reaction', not 'rational trading'.
👇 Let's look at two common emotional illusions:
❌ Illusion 1: Coin rises = horse rises more → chase!
Reality: Often, it is the market maker pushing up to distribute.
You rush in and become the bag holder.
❌ Illusion 2: Coin drops = immediately goes to zero → cut!
Reality: Many times it's a washout or a false drop.
After you cut your position, the market rebounds, and you 'sell low, buy high'.
🧩 These actions are actually manifestations of emotional trading:
Lack of planning, making decisions solely based on current rises and falls.
No stop loss or take profit set, completely relying on feeling to 'take a gamble'.
When emotions hit, the position becomes heavier.
✅ How to break this 'losing money cycle'?
1️⃣ Before entering a trade, ask yourself one question: Is this a planned trade?
If not, do nothing; force yourself to stick to the strategy.
2️⃣ Set the 'if you want to buy, wait 1 hour' rule.
For coins bought impulsively, observe them for 60 minutes; there’s a high probability you won’t want to buy them anymore.
3️⃣ During a decline, don't just focus on the price; look at the trading volume and candlestick structure.
A sharp drop with reduced volume may be a trap to lure shorts.
Don't cut the bottom yourself and then complain that 'the coin is too deceptive'.
4️⃣ Don't trade the 'hottest coins', trade the 'most manageable coins'.
The hotter the coin, the greater the volatility, and the sharper the knife for cutting leeks.
If you're not a hunter, don't enter the hunting ground.
5️⃣ Maintain emotional detachment: operate at fixed times instead of watching the market all day.
Trading is not a live broadcast, too much interference will affect decision quality.
✍️ One sentence summary:
The root of losing money is not poor skills, but reacting too quickly.
What trading fears the most is not slowness, but speed without logic.
