Have you noticed this phenomenon: when the coin price drops, people keep buying as it falls, becoming more confident to add positions the further it drops. But as soon as there’s a slight rebound, they start to get restless, rushing to clear their positions and lock in profits.

The underlying logic is actually very simple: in a bull market, when you make money, you’re afraid of losing it all again once you turn around, always haunted by the fear of “gaining and losing.” So as soon as you see a little green, you rush to exit. In a bear market, after losing money by diving in, you’re reluctant to admit defeat, repeatedly telling yourself “wait a bit longer, it will definitely rebound,” which results in doubling down and increasing your positions, betting on a turnaround.

Basically, most people’s trading logic is: when profitable, they are trembling and quickly lock in gains; when losing, they are unwilling to let go and keep adding to their positions. This cuts off the original potential for continued gains but amplifies losses all the way.

The true trend traders do the exact opposite—they quickly cut losing positions and hold tightly onto the profitable ones, letting profits run freely. It sounds simple, but in practice, it’s a direct challenge to human nature, filled with countless psychological struggles and decision-making torment.