Why do I still keep losing money despite understanding so much about the crypto world? — Let's talk about common pitfalls in crypto trading

In cryptocurrency trading, having extensive knowledge and actually making profits are two completely different things. Many people speak confidently about theories, but when it comes to practical execution, they often stumble. According to market analysis data, over 90% of traders are losing money. The main issues lie in execution and psychology, not a lack of knowledge. Here are some common reasons for losses, to help you self-check and reflect. These are based on real market data and practical experience, not empty talk.

First, being led by emotions to make decisions. You might clearly understand technical analysis and be able to read candlestick charts, but once the market fluctuates, you immediately let fear or greed take over—holding onto losing positions out of fear of bigger losses, or chasing high due to FOMO (Fear Of Missing Out) when prices surge. The final result is often buying at the top and selling at the bottom. Emotional hijacking is arguably the number one killer of trading profits; many people don’t lose to the market but to themselves.

Second, having a strategy in words but not following rules in action. Clearly, you’ve set up a trading system, such as establishing stop-loss levels, but in practice, you manually cancel them; or you add positions arbitrarily without a plan, treating your pre-set rules as mere words on paper. Studies show that 95% of intraday traders fail, mainly because of this—lack of discipline in executing trading rules, which directly causes the entire system to fail.

Third, risk management is too loose. For example, trading with living expenses or borrowed money, risking amounts far beyond what you can afford to lose; or overusing leverage, amplifying risks to uncontrollable levels, leading to margin calls or liquidation in a single market move. Remember: only invest “idle funds,” and never risk more than 1%-2% of your total capital on a single trade. If you can’t even do this, no amount of knowledge will help.

Fourth, knowledge is not applied effectively. Some people seem to know a lot but lack practical experience or have a superficial understanding of concepts, without deep research. They focus on short-term speculation for quick profits, frequently switching coins and chasing hot topics, but never evaluate the fundamentals of projects. The crypto market is a zero-sum game; if your “knowledge” doesn’t translate into real competitive advantage, you won’t make money.

Fifth, overtrading and FOMO-driven emotions. Seeing prices rise, you can’t help but buy, fearing to miss out on opportunities, but often ignoring that these might just be market noise. Frequent trading not only increases transaction costs but also raises the chance of mistakes. Beginners are especially prone to this: blindly following trends into small coins, only to see the market turn bearish, with prices dropping over 90%, resulting in heavy losses.

Sixth, ignoring macroeconomic influences. Focusing solely on internal crypto market dynamics while neglecting global economic trends and policy changes (such as Federal Reserve interest rate adjustments or geopolitical risks). Sometimes, a sudden macro news event can completely reverse short-term market trends. If your strategy has flaws and your position management is inadequate, you’ll easily join the ranks of the “90% losing traders.”

As for solutions, start by keeping a trading journal: record the reasons behind each decision and the outcomes, then review your mistakes regularly. You can also practice with small amounts in simulated trading to gradually strengthen your discipline. In the long run, dollar-cost averaging into mainstream coins is often more reliable than daily intraday trading. The market never spares anyone, but as long as you can control yourself, there’s a chance to turn things around. If you’re willing to share your specific loss experiences, I can help analyze where the problems lie.