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Table of Contents
Cognitive bias leads to decision-making errors
The risk control system is missing
Fatal operation three-piece set
Technical analysis application errors
Inadequate awareness of the market environment
Weak information processing capability
Transaction costs swallow profits
Systematic solutions
Home web3.0 The guide to getting started with newbies in the currency circle: Why always lose money when trading

The guide to getting started with newbies in the currency circle: Why always lose money when trading

Jul 30, 2025 pm 06:45 PM
Bitcoin cryptocurrency Why Binance currency circle exchange Ouyi Bitcoin exchange 2025 Getting Started for Beginners in the Currency Circle

The fundamental reason for the loss of novices is cognitive bias, risk out of control, technical misuse, environmental misjudgment, weak information processing and cost neglect. 1. Survivor deviation, anchoring effect, and excessive confidence lead to decision-making errors; 2. Full position, mobile stop loss, counter-trend increase of positions destroy risk control; 3. Index stacking, cycle mismatch, and lag confirmation affect technical analysis; 4. Variability misjudgment, liquidity traps, and time misalignment aggravates environmental risks; 5. News chasing, KOL dependence, and data overload weakens information processing; 6. High-frequency loss, slippage, and leverage fees erode profits; solutions need to adhere to 3:1 profit-to-loss ratio, strategy backtesting, and trading log analysis to establish a systematic trading system.

The guide to getting started with newbies in the currency circle: Why do you always lose money when trading - php Chinese

Novice's losses in digital asset trading often result from systemic cognitive defects and behavioral deviations, rather than simply market factors. This article reveals six core losses and provides targeted solutions to help build a sustainable trading framework.

Cognitive bias leads to decision-making errors

  • Survivor bias - Focus only on success stories and ignore the silence of most losers
  • Anchor effect - persistent in the influence of reasonable stop loss judgments on historical high prices
  • Overconfidence - mistake short-term luck for your own trading ability

The risk control system is missing

Fatal operation three-piece set

  1. Full Stories Soha - Investment of more than 50% of the principal in a single transaction
  2. Mobile stop loss - Continuously lower the stop loss position when the loss expands
  3. Increase positions against the trend - Trying to flatten the cost of holdings that continues to fall

Technical analysis application errors

Indicator stacking - Using 10 indicators simultaneously leads to signal contradictions

Periodic mismatch - Enter the market according to the 4-hour chart but use the 5-minute chart to stop loss

Lag confirmation-Entertainment after all indicators are perfectly resonant

Mainstream Bitcoin Exchanges in 2025:

Ouyi official website:

Ouyi official app:

Binance official website:

Binance official app:

gate.io official website:

gate.io official app:

Inadequate awareness of the market environment

  • Vulnerability Misjudgment - Use high leverage in low volatility periods to cause positions to explode
  • Liquidity Trap - Cannot be traded at expected prices in small-cap tokens
  • Time frame misalignment - use intraday strategies to operate weekly level trends

Weak information processing capability

  1. News chases up - take over at a high level after positive news is announced
  2. KOL Dependence - Blindly Following the Internet Celebrity Trader to Call Order
  3. Data overload - Monitor 30 tokens simultaneously distract

Transaction costs swallow profits

High-frequency trading loss - more than 20 transactions per day make the handling fee extremely profitable

Slip-point black hole - Market price orders generate unexpected price spreads during violent fluctuations

Leveraged Fund Fee - A 0.1%/day fund fee rate is charged for overnight holding positions

Systematic solutions

  • 3:1 profit-loss ratio principle - potential profits need to be 3 times risk exposure
  • Strategy Stress Test - Use historical backtest to verify the effectiveness of strategy
  • Trading log analysis - core indicators such as monthly statistics win rate/maximum retracement

The above is the detailed content of The guide to getting started with newbies in the currency circle: Why always lose money when trading. For more information, please follow other related articles on the PHP Chinese website!

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