The image shows the trading chart of BNBUSDT Perpetual on Binance. The current price is $618.84, and it is down 11.30% in 24 hours. The highest price in 24 hours was $700.49, and the lowest was $572.00.
In trading, there are two main ways to earn profit:
1. Long Position (Buy)
When you click Long, it means you believe the price will go up.
You buy at a lower price and sell at a higher price to make profit.
Example:
You buy BNB at $618
Price goes to $650
You sell → You make profit
But if price falls instead:
You buy at $618
Price drops to $580
You lose money
2. Short Position (Sell)
When you click Short, it means you believe the price will go down.
You sell at a higher price and buy back at a lower price.
Example:
You short at $618
Price drops to $580
You close trade → You make profit
But if price rises:
You short at $618
Price goes to $650
You lose money
Why Do People Lose Money?
People lose money because:
Market moves opposite to their prediction
They use high leverage (big risk)
No stop-loss
Emotional trading (fear & greed)
In the image:
RSI is around 46 (neutral zone)
Price dropped strongly from $700 to $572
Market looks weak but trying to recover
Is Trading Good or Waste of Money?
Trading is not gambling, but it is risky.
If you trade without knowledge, money can be lost.
If you learn strategy, risk management, and patience, profit is possible.
Golden rule: 👉 Never invest money you cannot afford to lose.
👉 Always use stop-loss.
👉 Start with small amount.
If you want, I can also explain:
What is leverage?
What is stop-loss?
How to reduce loss?
Simple beginner strategy?