He said he initially thought buying spot was the safest, with no leverage, and wouldn't face liquidation, so he wouldn't lose too much. However, three months later, his account shrank from 30,000 to only 8,000, and he didn't even dare to tell his family.

I asked him how he lost money.

He said: 'I just follow what those people on TikTok say; whoever calls for a rise, I buy; whoever says it's time for a bull market, I go all in, and I learned to add positions like others, but the more I add, the more I lose...'

I replied to him: 'You’re not incapable of doing spot trading; you just don’t realize that this market doesn’t make money based on enthusiasm.'

If you don't understand candlesticks, trends, and chips, it’s no different from going to a casino.

Let me tell you some hard truths:

In spot trading, no leverage does not mean no risk.

What spot trading fears most is not losing money, but stubbornly holding on, fantasizing that it will rise back up after being stuck.

Remember this: if you haven't sold, it's just a pile of numbers in your account.

So let me give you a few tips to avoid pitfalls; even if you're a complete novice now, you can still minimize losses after reading this:

Don't buy coins based on news.

What others call 'good news' is often something that has already surged significantly. If you follow in, you're just taking over someone else's position. If you want to earn 'the first wave of money', you can never rely on others' calls.

Do not blindly add positions.

Adding positions is a tactic, not an emotion. Many people hold on stubbornly when they get stuck, thinking 'lowering the cost', but if the market enters a downward trend, no matter how much you add, you're just jumping into the fire pit.

Don't heavily invest in a single coin.

Spot trading is like farming; you need to plant plenty of seeds. Some will sprout slowly, some may rot, but you can't bet on a single point for a full harvest.

So how do you judge the market?

Don't be afraid of candlesticks; they are not mysticism; they are the result of human nature and emotions.

You only need to understand three things:


1. What do candlesticks look like, and what emotions do they represent?

Long upper shadow = price rises then falls back; someone has started to sell off;

Long lower shadow = price drops then rebounds; someone is bottom-fishing.

Yin and Yang combination = strength comparison; more Yang indicates optimistic sentiment, while more Yin indicates a shift to bearish.

2. How to see trends?

The simplest and most straightforward perspective is:

High points continue to rise, low points continue to rise = uptrend;

High points continue to lower, low points continue to lower = downtrend;

Up and down fluctuations, indecisive = consolidation phase.

3. What positions are most likely to lose money?

When the trend is complete, volume is exhausted, and the candlestick shows a 'rise and fall' pattern,

You are still fantasizing, 'If it rises again, I will sell.'

At this time, 99% of beginners will take the last hit.

You might ask, so how should spot trading be done correctly?

Three words: choosing coins, controlling positions, going with the trend.

Choosing coins relies on sectors and themes; not everything is worth touching.

Controlling positions relies on plans; don’t think about going all in for a miraculous turnaround.

Going with the trend relies on candlesticks; don’t go against the trend stubbornly.

In the end, beginners in spot trading are like learning to swim,

At the beginning, don't think about fancy swimming strokes; first, learn not to drown.

Recognize reality, don't fantasize, and don't be swayed by emotions.

The longer you live, the easier it is to reap the benefits of the larger cycles.

Don't be fooled by the hype in the crypto circle; only those who can steadily start with spot trading and gradually establish a rhythm can truly survive as 'players'.

If you are still losing, take a moment to calmly understand candlesticks, trends, and market rhythms from the beginning.

If you don't understand something, just ask me a few words.

Once you understand, you'll eventually be able to turn things around on your own.