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The stupidest way to trade cryptocurrencies is often the most profitable. But 90% of people just can't reach the end.
Over the years, I've seen too many people end up in disappointment. The real reason for failure isn't market conditions, but the three self-inflicted blows:
**The first trap: chasing highs and selling lows**
When the market is rising, FOMO kicks in hard, and you buy right before it drops; when panic sets in, you're too timid to buy the dip. Those who can truly earn the cycle dividends are the ones patient enough to build positions gradually during declines.
**The second trap: going all-in**
Seeing a clear direction, thinking you're a genius, and pushing all your chips in. Little do they know, with such high volatility and the ruthless shakeouts by big players, a few downward wicks can wipe out heavy positions.
**The third trap: emotional overdrive**
Getting overly excited and going all-in, even if your trend judgment is correct, but missing the best opportunities to add positions because you're out of bullets, ending up just watching the show.
Honestly, in the crypto world, the scariest thing isn't market fluctuations but our own human nature that we can't overcome.
Later, I developed a practical **"Six-Word Formula"**, which seems simple but withstands repeated testing:
**When consolidation at high levels isn't finished, new highs often follow; at low levels, sideways movement without a bottom warns of new lows. Watch more, act less before a trend change.** Sometimes, learning to wait is key.
**Don't participate during sideways phases; choppy markets test patience and are harvesting opportunities.** Less action equals more safety.
**If the daily candle closes bearish, consider building positions gradually; if bullish, reduce positions gradually. Follow market sentiment—it's more reliable than guessing blindly.** The chart speaks for itself.
**A decline that’s hard to rebound from, a sharp drop that can reverse quickly. Rhythm is more important than price.** Direction and timing must align.
**Pyramid accumulation method: buy and sell in stages, never go all-in.** This is your safety net.
**After big swings, expect consolidation; after consolidation, expect a trend change. Don't make decisions during extreme emotions—wait for clear signals before acting.** Patients never lose.
This is the logic of the market; human nature is the biggest variable.