

The guide to getting started with newbies in the currency circle: Why always lose money when trading
Jul 30, 2025 pm 06:45 PMThe 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.
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
- Full Stories Soha - Investment of more than 50% of the principal in a single transaction
- Mobile stop loss - Continuously lower the stop loss position when the loss expands
- 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
- News chases up - take over at a high level after positive news is announced
- KOL Dependence - Blindly Following the Internet Celebrity Trader to Call Order
- 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!

Hot AI Tools

Undress AI Tool
Undress images for free

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Hot Topics

First, choose a reputable trading platform such as Binance, Ouyi, Huobi or Damen Exchange; 1. Register an account and set a strong password; 2. Complete identity verification (KYC) and submit real documents; 3. Select the appropriate merchant to purchase USDT and complete payment through C2C transactions; 4. Enable two-factor identity verification, set a capital password and regularly check account activities to ensure security. The entire process needs to be operated on the official platform to prevent phishing, and finally complete the purchase and security management of USDT.

1. First, ensure that the device network is stable and has sufficient storage space; 2. Download it through the official download address [adid]fbd7939d674997cdb4692d34de8633c4[/adid]; 3. Complete the installation according to the device prompts, and the official channel is safe and reliable; 4. After the installation is completed, you can experience professional trading services comparable to HTX and Ouyi platforms; the new version 5.0.5 feature highlights include: 1. Optimize the user interface, and the operation is more intuitive and convenient; 2. Improve transaction performance and reduce delays and slippages; 3. Enhance security protection and adopt advanced encryption technology; 4. Add a variety of new technical analysis chart tools; pay attention to: 1. Properly keep the account password to avoid logging in on public devices; 2.

Ethereum price exceeded US$3,800, and the DeFi and NFT markets are expected to hit new highs. 1. Spot ETFs are expected to bring in institutional capital inflows and enhance market confidence; 2. Cancun upgrade significantly reduces Layer 2 transaction costs and enhances network scalability; 3. The recovery of macro sentiment promotes the overall crypto market activity. In this context, the DeFi market will benefit from new narrative developments such as TVL improvement, increased user participation and re-pled; the NFT market has ushered in a recovery due to the enhanced wealth effect, decreased transaction costs and transformation to practical value. Both have the basis to hit new highs, but this growth will be driven more by technological progress and application implementation rather than simply speculation, marking the Ethereum ecosystem towards a healthier and sustainable development stage.

First, choose a reputable digital asset platform. 1. Recommend mainstream platforms such as Binance, Ouyi, Huobi, Damen Exchange; 2. Visit the official website and click "Register", use your email or mobile phone number and set a high-strength password; 3. Complete email or mobile phone verification code verification; 4. After logging in, perform identity verification (KYC), submit identity proof documents and complete facial recognition; 5. Enable two-factor identity verification (2FA), set an independent fund password, and regularly check the login record to ensure the security of the account, and finally successfully open and manage the USDT virtual currency account.

When using Yandex to find the official Binance channel, you must accurately locate the official website by searching for "Binance Official Website" or "Binance Official Website"; 2. After entering the official website, find the "Download" or "App" entrance in the header or footer, and follow the official guidelines to download or obtain the officially verified installation files through the app store; 3. Avoid clicking on advertisements or third-party links throughout the process, ensure that the domain name is correct and the link is trustworthy, so as to ensure the download security.

1. Choosing a compliant trading platform is the key to converting digital currency to legal currency. Platforms such as Binance, HTX, and Ouyi OKX that have good reputation, large user scale and complete security mechanisms should be given priority, and their user agreements and compliance requirements should be read carefully; 2. Complete identity authentication (KYC) is a necessary step, and you need to submit your ID card, personal photos, address certificates and other materials. High-level authentication helps to increase transaction and withdrawal amount; 3. When executing C2C transactions, you should enter the C2C section of the platform to select digital assets such as USDT, enter the sales quantity and filter high-reputation buyers, wait for their payment and confirm the funds to be received before releasing the assets; 4. During the withdrawal process, you must use the platform chat function to communicate, select certified merchant transactions, and strictly confirm the receipt.

The first batch of six virtual asset spot ETFs in Hong Kong was listed on April 30, with a strong performance in the first week, with a total turnover of HK$87.58 million and an asset management scale of over HK$2 billion, marking a key step for Hong Kong to move towards a global virtual asset center; 1. This product includes three Bitcoins and three Ethereum spot ETFs, jointly issued by Huaxia Fund, Jiashi International, Bose International and HashKey Capital; 2. Hong Kong has innovatively introduced a physical redemption mechanism, allowing investors to directly subscribe or redeem ETF shares with Bitcoin or Ethereum, improving transaction efficiency and reducing conversion costs; 3. Compared with the United States only approved Bitcoin ETFs, Hong Kong simultaneously launched two mainstream currency ETFs, which are at the forefront of the world; 4. Traditional finance accelerates the embrace of plus

The Binance App must be downloaded through official channels to ensure the security of assets. 1. Visit Binance's official website, check the URL and click the download link; 2. iOS users should search for "Binance" in the App Store and confirm that the developer is "Binance"; 3. Android users can download it from the Google Play Store or the official website to ensure that the source is trustworthy. Verify developer information, beware of abnormal permission requests, pay attention to official announcements to verify the authenticity of the application, and never download it through third-party links. After downloading, you should immediately enable security settings such as two-factor authentication to fully protect account security.