The recent pullback scared a lot of people, and several rounds of long positions being liquidated also added fuel to the market.
Now the market is full of panic; a slight rebound followed by a drop leads more people to short.
Those who didn't have time to cut losses before see a rebound in these days, worry about a decline, and start to 'stop losses in time.'
All of these decisions are not made calmly, but come from 'illusion' and 'fear.'
Imagining the market will rise like it did at the beginning of this year, then start a long decline again.
Comparing the market trends of the first half of the year, then imagining the market will drop significantly.
Thus, inexplicable fear arises; those who claim 'I want to catch the top of the bull market' begin to waver under such circumstances.
Seeing the market rise and fall repeatedly, fearing that this round of decline will be the same as before, I start to become more 'greedy', wanting to exit the market and wait for a drop to buy in again to make more profit.
The weaknesses of human nature, after being tested by the market, are revealed one by one, and one might not even realize it.
In the financial market, the only way to overcome the six poisons of human nature is to enhance one's own abilities.
Ignorance and fearlessness; being ignorant of this industry leads to an inexplicable belief that everything should be as follows: should sell at this position, should buy at that position, should first buy this and then sell that...
Clearly, I know nothing at all, I can't even interpret basic information like the Federal Reserve's interest rate cuts, I can't distinguish between each candlestick, opening price, closing price, highest price, and lowest price, yet I always have inexplicable confidence in the market.
Just like this chart, the 4-hour trend of Ethereum.
One candlestick represents 4 hours, 6 candlesticks represent 24 hours, and the recent candlesticks have already revealed the winners and losers.
But can you understand? If you can't understand, how can you judge whether the next move is up or down?
Many people still say, 'I will buy Ethereum when it drops below 3000 to the 2000s', but why would the market drop? Just because it fell before, will it fall again?
So all of this comes from 'illusion'; trading based on feelings is not sustainable; if you're right occasionally, that's just luck.
If you have learned the '潜龙战法' (Hidden Dragon Strategy), you can see from the recent 4-hour trend:
'The decline starts to shrink in volume.'
'The lows are starting to rise.'
'The percentage retracement level after a decline exceeds 100%.'
'Breakthrough of the downtrend line.'
Seeing these subtle signs and knowing what they express means you won't guess whether the next move is up or down, but will clearly understand the upcoming market.
If you are unclear about the market trend, don't think about making big money from investments; it's possible to make a little money by luck, but once you make it, you should quickly leave this industry to live well, otherwise, you will lose it again.
Last year it was inscriptions, this year it's memes; some people made money in this, but look at how they are doing now. Are they always making money?
Money that is not earned through one's own ability will ultimately be returned to the market.
Why do we always hear:
'Oh no, this coin has risen so well, I used to buy it but unfortunately sold it.'
'Oh no, I sold too early and made 10 points, I missed out on ten times.'
Why haven't you made big money and always missed the market? Actually, just look at the present, and it's clear.
When the market drops, you fear a big drop; when it rises a bit, you fear it will go back down, always thinking of selling first and waiting for a drop to buy again.
So may I ask: can you understand the signals of a peak and a bottom? If you can't understand the peak signals, why do you fear a drop and sell when it rises a bit? Why do you think there will be a big drop when it falls a bit and keep waiting?
Why are retail investors always unhappy when the market surges? Because they sold early or missed out.
Clearly, the market correction has ended and a new round of rise is about to begin, but I can't understand the signal to stop falling, and I'm still afraid of a big drop, so I keep waiting, and the price keeps rising while I wait, then I chase high before a new round of correction and end up stuck and cutting losses.
Clearly, the market correction has ended, and a new round of rise is about to start, but I can't understand the signal to stop falling and am still afraid of a big drop, so I keep waiting, and the price keeps rising while I wait, then I chase high before a new round of correction and end up stuck and cutting losses.
This is the fate of retail investors, constantly chasing highs, cutting losses when the correction is almost done, then chasing highs again, and then cutting losses again.
#“圣诞老人行情”再现 #本周微策略是否继续增持BTC？ #萨尔瓦多将“加速”增持BTC
If you are still underwater and can't see the trend, going long leads to drops, while going short leads to rises. Follow my profile for daily spot potential layouts and bull market strategy layouts.
