Staring at the K-line all day and feeling uneasy whenever the price fluctuates? This is a common problem among retail investors. Instead of obsessively watching the charts until your eyes blur, it's better to learn how to identify the trend—because trend is the real thing that can help you survive.
I've seen too many people fall into the trap of trying to catch the bottom and sell the top, either missing the entire move or getting caught halfway up the mountain. The biggest self-deception in the market is believing you can precisely pinpoint the lowest and highest points. Frankly, that's simply not realistic.
The real way to make money isn't that complicated: go with the trend, don't fight against it. In an uptrend, a dip is the perfect time to get in; in a downtrend, a rebound is when you should consider exiting. That's the secret that keeps seasoned traders alive today.
**What does a trend look like?**
An uptrend is characterized by higher highs and higher lows, like climbing stairs—each step higher than the last. Conversely, a downtrend features lower highs and lower lows, like going downstairs.
Many people are eager to predict the market, thinking that understanding the future makes them more skilled. But the truth is, trends are not predicted—they are created by the market itself. Our job is to recognize and follow them, nothing more.
**How to catch the trend?**
The moving average is a practical reference. When the short-term moving average (50-day) crosses above the long-term moving average (200-day), this "golden cross" often signals the start of a bull market. Conversely, the "death cross" may indicate an approaching bear market.
Of course, no indicator is perfect. All tools are meant to improve your win rate and odds. Investing ultimately is a game of probabilities, and our goal is to tilt the odds in our favor.
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Ser_APY_2000
· 01-22 19:29
There's nothing wrong with that, but in reality, few people can truly stick to the trend; most are still driven by emotions to make reckless decisions.
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LiquidityHunter
· 01-22 19:25
That's true, but the real challenge is not watching the market, now that's easier said than done.
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tokenomics_truther
· 01-22 19:18
That's right, but too many people are still dreaming of precise bottom fishing, haha.
Following the trend is truly the only way to survive. I'm tired of those who insist on going against the trend.
The golden cross and death cross patterns need to be combined with trading volume to be reliable; just looking at moving averages alone can be easily deceived.
You need to break the habit of constantly watching the screen; it hurts your eyes and affects your mindset. I now set alerts and then walk away.
To be honest, the market will tell you the direction itself, but the problem is most people can't listen.
It's indeed a probability game, but many people are even reluctant to cut losses.
They understand these principles, but execution is still a mess. I haven't avoided pitfalls myself either.
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just_another_fish
· 01-22 19:06
You're not wrong, but I still obsess over monitoring the market and can't change this habit.
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ponzi_poet
· 01-22 19:05
Here we go again with the old talk about moving averages. I just want to ask how many people can truly follow the trend.
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That's right, but execution is too difficult. When the market drops, they want to buy the dip; when it rises, they want to sell at the top—human weakness.
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I've heard about golden crosses and death crosses for three years, but still no profit. Are all indicators just lies?
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Trend trading sounds simple, but how many have actually survived until today? Most have been wiped out.
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Moving averages are indeed useful, but they are too lagging. By the time you react, a big wave has already passed.
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There's nothing wrong with this theory; the key is overcoming the psychological barrier. Knowing and doing are two different things.
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I just want to know why so many people still try to predict the market, even though they know it's unrealistic.
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Following the trend sounds easy, but only when you're losing do you realize what true torment is.
Staring at the K-line all day and feeling uneasy whenever the price fluctuates? This is a common problem among retail investors. Instead of obsessively watching the charts until your eyes blur, it's better to learn how to identify the trend—because trend is the real thing that can help you survive.
I've seen too many people fall into the trap of trying to catch the bottom and sell the top, either missing the entire move or getting caught halfway up the mountain. The biggest self-deception in the market is believing you can precisely pinpoint the lowest and highest points. Frankly, that's simply not realistic.
The real way to make money isn't that complicated: go with the trend, don't fight against it. In an uptrend, a dip is the perfect time to get in; in a downtrend, a rebound is when you should consider exiting. That's the secret that keeps seasoned traders alive today.
**What does a trend look like?**
An uptrend is characterized by higher highs and higher lows, like climbing stairs—each step higher than the last. Conversely, a downtrend features lower highs and lower lows, like going downstairs.
Many people are eager to predict the market, thinking that understanding the future makes them more skilled. But the truth is, trends are not predicted—they are created by the market itself. Our job is to recognize and follow them, nothing more.
**How to catch the trend?**
The moving average is a practical reference. When the short-term moving average (50-day) crosses above the long-term moving average (200-day), this "golden cross" often signals the start of a bull market. Conversely, the "death cross" may indicate an approaching bear market.
Of course, no indicator is perfect. All tools are meant to improve your win rate and odds. Investing ultimately is a game of probabilities, and our goal is to tilt the odds in our favor.