$ETH Don't always stare at the K-line and make random trades!
I have a classmate who is truly a case of 'the clever being misled by cleverness'.
Seeing me earn profits trading cryptocurrencies, he thought, 'I can do it too', and plunged into the crypto world with 20,000 U.
He always believed he could see through the market, but after two months of buying high and selling low, his account was left with only 3,500 U, and he was so frustrated he wanted to delete the trading app.
His most ridiculous move was: last month, $SOL rose from 150 U to 180 U, and someone in the group shouted 'breakthrough 200 U', he got tempted and jumped in with all his funds, only for it to drop back to 165 U that same day, panicking and cutting losses of 2,300 U.
Not stopping there, he heavily followed a certain MEME coin, and three days later, the price was halved, resulting in a massive loss.
He came to me to vent, and I only gave him a simple piece of advice: 'Buy something when you buy, sell something when you sell; don't make random moves without signals.'
Going in hard without clear buy and sell signals is all emotional trading, and that's the root of the losses.
But more importantly, the buy and sell points must be his own.
I set signals based on the BOLL band + volume: $BTC buy when it breaks the lower band with volume, sell when it shrinks at the upper band, stop loss at 3%, take profit at 8-10%.
He has less capital and weaker risk tolerance, so he should follow more conservative rules:
Only trade mainstream coins;
Buy only after a correction of more than 5%;
Take profit at 7%;
Position not exceeding 20%;
He spent a week reviewing his losing trades and established his own buy and sell signals.
This month he only made 6 trades, 4 profitable and 2 losing, netting a profit of 2,600 U, and his mindset is much steadier.
Last week, when ETH corrected to 1900 U, which met the buying signal, he entered with a light position, and when it rose to 1995 U, he decisively took profits, earning 4.5%, and even came to share the good news with me.
Currently, the market is extremely volatile, with sharp rises and falls occurring frequently. If you can't control your emotions, it's easy to be led by the market.
True progress isn't about staring at the K-line and making random guesses, but about establishing rules that suit you and adhering to discipline.
Don't always think you're smarter than the market. If you can manage to 'buy when you buy, sell when you sell', and not be led by emotions, you've already beaten 80% of retail investors.
As the saying goes: a lonely sail cannot go far, a single tree cannot make a forest. If you reach out actively, we will have the opportunity!
