Continuing the topic of trading without relying on 'head and shoulders' patterns. Today we'll examine what many lose their deposit on, even before opening losing trades — Funding Rate (Funding Rate). 🔍 What is this in simple terms? On Binance futures, traders pay each other every 8 hours to keep the contract price close to the spot price.
The Trap of the 'Beautiful Chart': Why Trading Patterns Work 50/50? 🧠
Have you noticed this in yourself? You open the chart, and your eyes instantly 'draw' a perfect 'Head and Shoulders' or any other pattern. It seems like it's a 100% signal! But in reality, only half of such trades turn profitable. Why does this happen? • Confirmation bias. Our brain loves being right. We subconsciously look for patterns on the chart that confirm our expectations, and completely miss signals that go against us. (And that's normal). Shift your focus and look at the chart again — you'll see that the patterns that didn't work are just as numerous as those that did. Think of it this way: price moves 50/50 up or down, in theory.)
You know, after all this time in cryptocurrency, I realized one thing! Everything is simply banal! You don't need knowledge in crypto.... you don't need to study all these charts and rumors, just don't succumb to panic and keep a cool head! Don't catch the FOMO feeling when everything is flying up! 99% will be destroyed by greed and the feeling of missed opportunity! These are not just words, this is my experience! All losses were not so much about buying the wrong coin, but rather succumbing to these feelings and making mistakes.