When cutting meat, hands tremble; when going all-in, impulses take over——this is the real portrait of most people in the crypto market.
Akai found me for drinks the night of his third liquidation, his eyes full of unwillingness: "I was almost there this time, just need a bit more time and I'll definitely earn it back." I spoke frankly and threw cold water on him: "Buddy, you weren't almost there to recover, you were almost about to send your last drop of blood and sweat money in."
His story is quite representative. Initial investment of $20,000, account once shot up to $50,000, then got knocked back to square one in two weeks. Unwilling to accept this, he started frantically adding positions, throwing good money after bad, ultimately ending in a complete mess. This operational sequence is basically the standard script for retail traders.
According to market statistics, in environments with violent price swings, over 90% of traders who choose counter-trend operations eventually get liquidated. More realistic data: over the past five years, retail traders' profitability ratio in stock markets is under 10%, while institutional investors' profit share has already exceeded 28%. You can see the gap at a glance.
**Stubbornly resisting the trend is a wealth destruction machine**
Akai's first fatal mistake was resisting market trends regardless. When prices were falling, he continuously added positions, dressed up as cost averaging, but was really just catching that falling knife. Data shows that counter-trend trading success rates average no more than 30%, but once losses occur, the magnitude is often 3 to 5 times the profits.
In leveraged markets like futures or cryptocurrency, this risk gets infinitely amplified. Numerous bloody cases throughout history tell us that leverage is like a double-edged sword—use it well and you ride the wind and waves, use it poorly and you flip directly.
When cutting meat, hands tremble; when going all-in, impulses take over——this is the real portrait of most people in the crypto market.
Akai found me for drinks the night of his third liquidation, his eyes full of unwillingness: "I was almost there this time, just need a bit more time and I'll definitely earn it back." I spoke frankly and threw cold water on him: "Buddy, you weren't almost there to recover, you were almost about to send your last drop of blood and sweat money in."
His story is quite representative. Initial investment of $20,000, account once shot up to $50,000, then got knocked back to square one in two weeks. Unwilling to accept this, he started frantically adding positions, throwing good money after bad, ultimately ending in a complete mess. This operational sequence is basically the standard script for retail traders.
According to market statistics, in environments with violent price swings, over 90% of traders who choose counter-trend operations eventually get liquidated. More realistic data: over the past five years, retail traders' profitability ratio in stock markets is under 10%, while institutional investors' profit share has already exceeded 28%. You can see the gap at a glance.
**Stubbornly resisting the trend is a wealth destruction machine**
Akai's first fatal mistake was resisting market trends regardless. When prices were falling, he continuously added positions, dressed up as cost averaging, but was really just catching that falling knife. Data shows that counter-trend trading success rates average no more than 30%, but once losses occur, the magnitude is often 3 to 5 times the profits.
In leveraged markets like futures or cryptocurrency, this risk gets infinitely amplified. Numerous bloody cases throughout history tell us that leverage is like a double-edged sword—use it well and you ride the wind and waves, use it poorly and you flip directly.