$ACT Why do most traders lose money?
The problem lies not in the market, but in the people.
Emotions are the most expensive cost.
The most common cycle for beginners can be summed up in four words:
Chasing highs, cutting lows.
When the price rises, they fear missing out and rush in at high levels;
At the first sign of a pullback, they panic and cut losses at low levels.
Over time, the account is naturally consumed repeatedly.
There is too much information, making it hard to see clearly.
The crypto market is flooded daily with announcements, calls, rumors, and macro interpretations.
Beginners often cannot distinguish between signals and noise,
Taking “news stimuli” as the basis for trading,
The result is simply being led by the market.
Leverage is an amplifier, not a cheat
“10 times leverage, a 10% rise doubles your money” sounds great,
But no one tells you:
A 10% reverse means you’re out immediately.
Leverage amplifies not just profits,
But also greed, fear, and impulse.
From gambler to trader, it relies on a system
First: have a framework
Traders who can survive long-term have clear rules, including:
What logic to use to judge the market
How much to lose at most on each trade
What conditions to enter, what conditions to exit
Without standards, only feelings remain.
A simple practical example
Taking ETH as an example, assume the price is around $3000:
Technical Analysis: Daily key support, short-term signals of strength
Fundamentals: Ecosystem expansion continues, long-term logic remains
Capital Management:
Enter in batches, position not exceeding 40% of total capital
Set clear stop-loss levels, overall risk control within acceptable range
Take profits in segments, use trailing stops to protect remaining positions.
Consider the worst-case scenario before expecting profits.
The real differentiator is psychology
The success or failure of trading is 80% execution.
You need to do three things:
Record every trade, review regularly
Know in advance how much drawdown you can tolerate
No matter how strong the emotions, do not change the plan
The market will change, but principles will not
Themes will rotate, narratives will change,
But risk control is always the bottom line.
Whether or not you can make a lot of money is not important,
Whether or not you can stay in the market is the key.
Surviving is more important than how much you earn.