At 1 AM, my phone vibrated incessantly, and fan Aze sent 37 messages $FOLKS
Each one filled with a sobbing tone: “Teacher, save me! 100,000 U is down to 20,000, I understand Bollinger Bands and trend lines, but I just can't hold positions and keep adding, the more I lose, the more I rush to break even, the more I add, the more I lose, I can't sleep at all!”
This is the fate of 90% of retail investors in the crypto market:
They learn technical indicators quickly, but when losses occur, they can't help but think “just wait a bit longer,” when in profit, they are anxious to add positions, and when the market consolidates, they fear missing out and make random trades — the real pitfall is not “not knowing how to read the market,” but rather “knowing full well, yet being unable to execute.”
I pointed out 4 core psychological traps that caused his losses:
Stubbornness: unwilling to admit mistakes after being stuck, small losses turn into big ones, essentially driven by the self-esteem of “not being able to lose”;
Emotional trading: excited when making money and chasing highs, panicking and cutting losses when losing, being led by emotions;
Fear of missing out: getting in as soon as the market moves, frequent trading causes the system to spiral out of control;
Obsession with predictions: always thinking about guessing price movements, getting it wrong but stubbornly holding on, being hijacked by one's own judgment.
Even more deadly is the revenge trading after losses: rushing to recover, increasing position size, lowering standards, the more they try to remedy, the more they lose.
I gave him a set of strict rules to follow without exception:
Set a “Calm Zone”: no trading within 20 minutes of a loss, review for 3 minutes before taking action, and the next trade must be half the position;
Establish a fixed process: only accept A + signals (daily trend + confirmation from shorter cycles), list 10 entry prohibitions, with fixed position sizes and stop losses;
Practice “small stop losses”: execute small stop losses for 30 consecutive days, recording “small losses protect future opportunities” each day;
Structured review: for each trade, clearly write down the reasons for entering, whether rules were violated, regretful actions, and optimization directions.
Three months later, Aze's 20,000 U rose to 48,000, and he said: “I realized that winning in trading is about mindset; sticking to the rules is more important than understanding the technology!”
The real enemy of retail investors in the crypto market is not the market itself, but their own psychological weaknesses.
Separating emotions from decision-making and replacing impulses with processes is the only way to break the cycle of losses — this is the core secret of trading. @juice13
