Traders who continuously incur losses often share a common flaw: they love to catch the bottom and gamble on reversals. $ETH
Recently, the Nikkei has been hitting new highs, and many around me are shorting against the trend, resulting in a complete mess.
In fact, catching the bottom is extremely difficult and is only suitable for seasoned traders, yet it is highly sought after by novices.
Many people catch the bottom without any logic, simply holding onto the mindset of “picking up bargains,” which is very dangerous in the market.
Novices are not suited for catching the bottom for a simple reason: once a trend is established, it is hard to reverse quickly. There are always cautious funds waiting to enter during a pullback, pulling prices back to the original trend.
Inexperienced individuals cannot discern whether the strength has been exhausted, and most end up catching it halfway up. Additionally, the risks of catching the bottom are immense; even if done correctly, novices cannot hold onto profits and are eager to exit at the slightest gain, bearing high risks without corresponding returns, which will only lead to stable losses in the long run.
In trading, judging the continuation of a trend is far simpler than judging a trend reversal. Most people prefer to gamble on reversals, which is merely a weakness of human nature, while trading is essentially a battle against human nature.
Lastly, here's a gem for everyone: in the market, the opposite of rising is not falling, but not rising; the opposite of falling is not rising, but not falling. To understand the trend, take a good look at this statement. $BTC