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Over the years in the crypto world, I've seen too many people get liquidated and exit the market, spending every day in anxiety and regret. Careful observation reveals that their losses are often not due to bad luck, but because they keep repeating the same fatal mistakes.
The three most common misconceptions are:
**Bad Habit of Chasing Gains and Cutting Losses**
When the price rises, eyes light up, and they think "this wave will fly," but as soon as they jump in, they get hammered. The real buying opportunities come during major dips, yet no one is there. Those who can "buy when it falls" instinctively are the ones truly benefiting from market cycles.
**Full Position Crushing Yourself**
Even if the direction is correct, it’s useless. As soon as the big players shake the market, a few quick stop-losses will wipe you out. People who don’t know how to reserve a backup plan are doomed to be sidelined. Going all-in leaves no room to adjust or switch coins, watching others profit while you’re stuck.
**Still Moving During Consolidation**
The most frustrating and money-losing phase is sideways trading. When the price is trying to determine its direction, frequent trades only drain your energy.
Speaking of which, I’ve developed a short-term trading strategy that looks simple but is actually effective:
1. If the price is still sideways at high levels, new highs are likely still ahead; if it’s consolidating at low levels without finding a bottom, it’s prone to continue downward. Don’t rush to act before a clear breakout.
2. The biggest test during consolidation is patience. Most losses come from pointless back-and-forth trades.
3. The daily chart gives the clearest signals—buy on dips when the candle closes bearish, consider selling on bullish closes. Follow the market sentiment and rhythm, it’s much better than relying on gut feeling.
4. Watch the speed of the decline. Slow drops indicate low enthusiasm and weak rebounds; fast drops are more likely to be quickly pulled back. Finding the right rhythm is crucial.
5. Use the pyramid method for building positions—enter in stages, keep some bullets ready, so you won’t be swept away by the market.
6. After large fluctuations, a consolidation phase is inevitable, and after consolidation, a trend reversal will happen. But don’t go all-in at the peak, nor in despair when things look hopeless.
The most effective way to trade crypto is actually these seemingly stupid methods. The problem is, 90% of people can’t stick to them. Because you need patience, endurance, and self-control. Stay calm when others are frantic, act decisively when others are despairing—these sound simple, but are extremely hard to do.
Those seemingly lucky experts are actually those who have mastered these "stupid methods" to the extreme. The crypto world never lacks opportunities; what’s missing are those who truly survive.