Why are you always losing money?

This article is written for all the newbies who have just entered the circle, or for those who have already studied Technical Analysis but are still continuously losing money.

Some people have heard that the crypto world is very powerful and take the initiative to learn about it. Some see their friends and relatives making profits from trading cryptocurrencies and can't help but jump on the bandwagon to give it a try; others just accidentally come across the concept of crypto and embark on their trading journey with curiosity and expectation. However, everyone's starting point is almost always accompanied by a longing for profit.

But when you actually invest money, reality will always give you a heavy blow — the crypto market is not as easy to make money as imagined; instead, it has become one of the fastest losing markets many people have seen. Today I just deposited 100U to enter the market, and the next day my assets were halved; I confidently opened a short position of 1000U before bed, only to wake up and find my account completely zeroed out; trusting a recommended coin from a blogger, I rushed in to go long, but as soon as I entered the market, the price plummeted. To recover losses, many people are forced to hold their positions, even staying up until 3 AM, staring at the fluctuating prices on the screen, afraid of missing any chance of a reversal, but can only watch helplessly as their losses continue to expand.

These difficult and tormenting experiences are not only a true reflection of you, but also the path I have personally walked. Whenever losses occur, we often find ourselves trapped in endless confusion and self-doubt: Did my Technical Analysis go wrong? Often after closing the position, the price moves in the direction I initially expected - if I could have held on a little longer, would I have made a profit? Did I follow the wrong trade? The blogger who recommended the coin clearly has an impressive track record, and he indeed made quite a bit of money from this trade. Why did it turn into a loss for me? Is the market volatility too extreme, or is my luck just too bad? Clearly, every time I've carefully studied the candlestick charts, indicators, and also referenced multiple viewpoints, yet in the end, I still can't escape the outcome of being trapped and cutting losses... 。。。 There are still many, many questions, and they will ultimately converge into one question.

-----Why am I still losing?

In fact, the reason for the continuous losses in the crypto circle is not complicated: you are only focused on the "get-rich-quick myth," while turning a blind eye to the hidden risks behind it, and neglecting the extreme requirements of this market for risk management, cognitive level, and trading mindset.

The urgent mentality of wanting to make quick money has led many people to blindly increase their leverage. They always feel that only a 100% return is enough to "quench their thirst," forgetting that high leverage comes with proportionately high risks — even a slight price fluctuation can turn an account that was just earning 100% profit one second into -200% the next second. In the end, one either has to endure the pain of cutting losses or directly face liquidation. The short-term stimulation brought by high leverage is indeed tempting, but it will push you, who is unwilling to cut losses in time, step by step towards an outcome of zero balance in the account.

There are also some people who, after spending just a few hours learning about trading, see that the BTC trend is “exactly the same” as the case studies in the course, and they rush to apply the trading models from the book to enter the market. However, the market never follows the “script”; as soon as they place an order, the price fluctuates in the opposite direction. At this moment, their unwillingness to admit defeat comes into play, and they always feel that “the price will definitely return to the expected direction.” Stubbornly holding on will only lead to deeper losses. It’s important to understand that static theoretical knowledge can never perfectly cope with a dynamically changing market; all trading strategies are essentially probability games, and there are no absolute winning rules.

The more common problem lies in the mindset: after a loss, wanting to immediately open a position to "break even", operating with a gambling mentality; seeing the K-line just show an upward pattern, entering the market based solely on the "feeling it will rise" without any analysis; after opening a long position, fearing the profit will slip away as the price slightly drops, hurriedly closing the position — ultimately falling into a vicious cycle of "big losses and small gains."

If you think you also meet these conditions and want to solve these problems, stay away from losses. You can follow me, the second article is already being written, starting from my personal experience, from the initial losses to the current stable upward trend in my funds, how I did it, how I thought, and all the details will be written out.

May everyone be able to escape the predicament of continuous losses.

I am the Review Brother, aspiring to become a blogger who can help fans reduce losses and start making stable profits.