2026-01-03 07:27:43

Many people lose money trading cryptocurrencies because they fundamentally fail to understand the basic logic of the market. From losing 800,000 to eventually breaking even and doubling, my summarized experience is this simple—stick to doing the right things, and more importantly, never do those three stupid things.

Let's talk about the three never-do's: First, never chase high during an uptrend. Conversely, when everyone is in fear, that's actually a good time for greed; when the market is extremely hot, it's time to stay calm. The decline is the window for building positions; this should be instinctively understood. Second, avoid placing buy orders in a way that risks losing control—this approach is too risky. Third, operating with full position is like sentencing yourself to punishment. Once you're fully invested and caught in a downturn, there's no room to maneuver. The market offers many opportunities, and the opportunity cost of being fully invested is extremely high.

For short-term trading of popular coins like SOL, I’ve summarized six core rules:

Consolidation at high levels often leads to new highs, while consolidation at low levels usually results in new lows. The key is to wait until the trend direction is clear before taking action. Additionally, sideways movement is a forbidden zone; most people lose money here. Regarding candlestick patterns, buy on a daily chart when a bearish (downward) candle closes, and sell when a bullish (upward) candle closes—that's the simplest rhythm. If the decline begins to slow, the rebound will also slow; once the decline accelerates, the rebound will accelerate as well.

Use the pyramid principle for building positions; this is a fundamental rule of value investing. The last point is very important: after a currency experiences a sustained rise or fall, it will inevitably enter a sideways phase. At this point, don’t think about selling all at the high or buying all at the low, because after consolidation, a trend reversal is certain. If the price breaks downward from a high, you must cut your losses decisively. The core is to have a sense of rhythm and adjust your strategy in time.

SOL-0,08%

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GateUser-a180694b

· 01-05 10:47

It sounds nice, but it's just gambler mentality. Anyway, I don't have that kind of willpower. Once I got caught with a full position, I never dared again. I'm still paying off debt now. Chasing highs once cost me half a year's salary. The tuition was too expensive. Sideways trading is really a meat grinder; once you're in, you're just giving away money. Building a pyramid position sounds simple, but who can actually do it in practice? When the market drops, my hands tremble. How can I think about greed at such times? Losing money on a stop-loss is deadly, it's like risking your life. SOL has been really miserable this round. Blame myself for not holding back. Some words are useless even after hearing them a hundred times; you have to lose money yourself to believe. Sense of rhythm? I just don't have that.

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GasFeeCrier

· 01-05 06:41

Losing 800,000 to double your investment? Alright, this theory sounds good, but the part about sideways trading is too absolute. I’ve actually made quite a bit during sideways markets... --- Full position is suicide, I get that, but really, you can’t touch shorting? Sometimes I feel like... never mind, the risk is indeed high. --- You’re right about chasing highs, but the problem is, who can really stay calm and build positions during fear? Easy to say. --- I agree with the pyramid building rule, but SOL’s volatility is crazy. Sometimes the pyramid isn’t even fully built before it suddenly surges. --- Only act when the trend reversal is clear. Sounds simple, but by the time that moment comes, the opportunity is gone. That’s a paradox. --- If the decline slows down, does the rebound also slow? I’ve seen the opposite happen before, with sudden explosive moves at the bottom...

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ReverseFOMOguy

· 01-04 05:09

The opportunity cost of full position really hit me. I almost went bankrupt with a full position in SOL before. Looking back now, I still feel scared. Losing 800,000 and then doubling it, this guy definitely stepped on a landmine. But on the other hand, this set of theories sounds easy, but actually implementing them is really difficult. I agree with the concept of the sideways trading zone; many people are worn down and give up during consolidation. Wait, high-level consolidation reaching new highs and low-level consolidation hitting new lows—this logic doesn't seem foolproof either. It probably depends on the overall market environment at the time. Sense of rhythm is indeed key, but most people can't even control their own emotions, so how can they talk about rhythm?

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BearMarketHustler

· 01-03 07:51

That's right, full position trading really is just digging your own grave. Wait, you lost 800,000? Man, your mindset must be incredibly strong. A sideways market is deadly, that hits right in the heart. Where did the group chasing the high go now, haha. Placing orders to bet is just gambler's behavior, there's nothing more to say. Building a pyramid with a steady position is indeed safe, but most people still can't wait. Buying on a downtrend and selling on an uptrend, it sounds simple but why is it so hard to do? I've heard this theory many times, but the key is still execution. Does the acceleration of decline also speed up the rebound? This logic feels a bit counterintuitive. SOL really took a hit in the short term, sideways trading is the most frustrating. Sense of rhythm, if you don't master it in three to five years, you won't get it. The moment of clearing out your position is the true test of human nature.

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SeasonedInvestor

· 01-03 07:50

Full position is basically asking for death, and that's no lie. I've seen too many people go all-in at once, only to get trapped so badly they can't move. Basically, it's greed — insisting on earning that last penny. Sideways markets are the most annoying. I always want to buy the dip, but get slapped in the face. Now I just avoid them altogether. Pyramid building is indeed effective, but it requires strong mental resilience to execute, which many people can't do. Chasing highs — I've seen too many people lose so much they start doubting their life.

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TeaTimeTrader

· 01-03 07:49

Well said, I've fallen into the trap of chasing high too many times. The deepest lesson is full position, one set and I was stunned. Sideways trading is really a money-losing machine, I'm a bit hesitant about this. Building a pyramid position sounds simple, but in practice I can't control my emotions. When the decline accelerates, the rebound is also quick; this rhythm really needs to be practiced. When at a high level, breakouts mean clearing positions; it sounds easy but it's painful to do. Buy during fear and sell during greed, easy to understand but hard to implement, everyone. The risk of placing orders is outrageously high; those who have seen margin calls are all hesitant. Having a rhythm is more valuable than having capital; I believe this now. Buy on bearish candles and sell on bullish candles, doesn't that sound a bit too simple?

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StakeOrRegret

· 01-03 07:41

That's right, full position trading is truly a suicidal move; I've seen too many people get liquidated directly out of greed. People who chase highs should look more at historical K-line charts; there are only a few common patterns for losing money. Consolidation is indeed a trap; most people get stuck here, lacking the patience to wait for a trend reversal. Building a pyramid position sounds easy but is hard to execute; the psychological barrier is tough to overcome. Judging whether the decline is slowing down and then accelerating sounds simple, but it actually relies on experience and intuition. The key is discipline; no matter how many rules there are, they are useless without it. I understand the feeling of being caught in a full position; it’s like being tightly stuck. Chasing highs—once you lose once, you learn to stay calm; the cost is quite high. Fear and greed are indeed the truth, but the problem is that it’s very difficult to truly operate against human nature. I’ve already given up on placing sell orders; the risk is completely uncontrollable and not worth it at all.

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MEVHunterBearish

· 01-03 07:38

Talking about losing money again, hearing about doubling 800,000 is exciting but who has actually achieved it? Full position trading should have been banned long ago; the methods of harvesting leek farmers every day in this market keep changing. Consolidation is really a trap; once you enter, it's a living hell. Pyramid building has been heard hundreds of times, but no one can really follow the discipline. Chasing highs during a decline, it seems simple but most people can't control their hands.

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MetaMaskVictim

· 01-03 07:36

It sounds good, but few people can really do it. I am the type who gets caught chasing highs; now I have a psychological shadow when looking at K-line charts. Full position trading? It's truly worse than death, with no room for maneuver, unable to wake up even if you realize it. These rules are written down and understood, but executing them is another matter. Most people are still driven by greed. I agree that "downward movement is an opportunity," but it's really hard to truly act in fear. Honestly, compared to these rules, controlling your mindset might be the toughest hurdle. I had a deep experience during the sideways market; the longest one wasted me three months, watching other coins double in value. Pyramid building sounds professional, but where do ordinary people find the energy to operate step by step? It's still easy to be impatient and seek quick gains. Losing 80% and still doubling up is indeed impressive, but that requires a lot of luck and timing. Not everyone can replicate it. The sense of rhythm sounds simple when spoken, but how many people can stay calm during market chaos? Anyway, I can't do it.

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CafeMinor

· 01-03 07:33

That's right, chasing highs is really a deadly mistake; I've fallen for it before. Full position is indeed suicide; it's too uncomfortable without any room for maneuver. Consolidation truly tests patience; most of the time, you're losing money. Learning how to build a pyramid position is essential; otherwise, the risk is ridiculously high. When the decline accelerates, the rebound can be quick too; this rhythm is very important. If the price breaks out at a high level, it's time to run; don't expect a rebound. Don't touch the order pressure; risk control is crucial. Don't rush to buy the dip before a trend reversal; wait until the direction is clear. This set of rules sounds simple, but executing them still requires the right mindset.

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