Why Do You Always Lose Money In Crypto Trading?

In the volatile world of crypto, many small investors struggle when the market does not go as they expect. Have you ever wondered why you keep losing while others are still making a profit? The secret lies with the 'whales' - large investors who have the ability to manipulate the market in their own way. This article will explain in detail how whales operate, common traps to avoid, and strategies to confidently enter this game.

1. How Whales Control the Market Whales employ a sophisticated series of tactics to manipulate prices and generate huge profits, while trapping small investors in traps. The main stages include: a. Stealth Accumulation ( Strategy: Buy in a discreet manner, without letting the market notice your presence. Goal: Accumulate a large amount of coins before attracting the attention of small investors. b. Price Pump)Pump( Strategy: After accumulating enough, whales push up the price through marketing campaigns, rumors, or large-scale transactions. Goal: Create sudden buying power, attract small investors to enter the market. c. Re-Accumulation & Bigger Pump) Strategy: After the initial pump, the whale continues to buy as the price rises, preparing for the next pump. Goal: Maintain the uptrend and ensure there is enough coins to sell when the price reaches its peak. d. Distribution and Dump (Distribution & Dump) Strategy: When the price has reached the expected high level, whales sell their coins.Target: Profit significantly from the price pump, causing the price to collapse and small investors to suffer losses. e. Re-Distribution ( Strategy: The process can be repeated many times, creating consecutive price declines. Objective: Profit from the market as small investors try to "follow" the trend.
2. Whale Traps You Should Avoid Understanding the traps that whales set is the first step to protecting your investment capital: a. Breakout Fakeouts ) Characteristics: The price suddenly rises but it's just a fake signal, then quickly collapses. Prevention: Do not rush into orders when you see the "explosive" signal without confirmation from trading volume or other technical indicators. b. Fair Value Gaps - FVG Feature: Gaps on the price chart are caused by strong fluctuations, often followed by price adjustments. Prevention: Always wait for the 'filling' of this gap before placing an order, and monitor the market's adjustment trend. c. Fake Signal Trap (Retail Traps) Features: Buy/sell signals of unknown origin, created to mislead small investors. Prevention method: Always rely on technical and fundamental analysis instead of chasing rumors or 'tips' from unclear sources.
3. The Secret to Defeating the Whale a. Monitoring Support and Resistance Levels Reason: These price levels are often the stopping points of pump and dump cycles. Advice: Be patient, observe, and wait for confirmation signals from the market before making decisions. b. Enhance Technical Analysis Knowledge Reason: Understanding indicators, trends, and price patterns help you identify manipulation stages.Advice: Regularly learn and update information from reliable sources, participate in courses or specialized communities. c. Emotional Control and Clear Planning Reason: Emotions can cloud judgment, leading to incorrect trading decisions. Advice: Set a stop-loss level, take profit specific, and adhere to the strategy outlined, avoiding 'chasing' the market. d. Effective Risk Management Reason: Every transaction carries risks, and proper risk management helps protect investment capital. Advice: Use tools like stop loss, allocate capital properly, and never bet too much on a single trade. Conclusion The crypto market is always full of opportunities, but it is also not lacking in traps set by whales and their manipulation strategies. Understanding how whales operate, identifying common traps, and applying smart trading strategies will help you minimize risks and even generate huge profits, aiming for the $100K+ figure. Remember, success in trading doesn't come from luck but from knowledge, patience, and the ability to control your emotions. Wishing you always stay alert, grasp market trends, and seize golden opportunities in this enchanting crypto world. DYOR! (Write&Earn $BTC {spot})BTCUSDT(