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The most challenging aspect of trading in the crypto world is actually understanding the day-night fluctuations of capital flow. Mastering this pattern can help you avoid at least 80% of the pitfalls, which is especially significant for retail investors.
First, let's talk about the rhythm of day-night trading. If the price continues to decline during the domestic daytime, don't panic; this is actually a good opportunity to buy the dip. Around 21:30 in the evening, European and American funds usually start entering the market to push prices, often causing a reversal. Conversely, if the price surges aggressively during the day, do not chase the high, because there is a high probability that the price will revert at night, and the gains made during the day could vanish instantly.
There is also a powerful trading signal—"injection" (插针). Whether it's a long needle or a short needle, the deeper it goes, the more obvious the market's intention behind it. Following this rhythm can significantly improve your success rate.
News and social groups are the two easiest traps to fall into. Before major positive news is announced, the price often moves up in advance; once the news is officially released, the price quickly retraces. This is a common point where many lose money. The coins that are hyped most aggressively in social groups are often signs of a "scalping" (cutting leeks) scheme— the more your investment desire is stimulated, the closer you are to being "scalped." Sometimes, thinking in reverse can be more effective; coins that are most hyped can sometimes be better to operate against the trend.
An interesting phenomenon is: coins you initially have no interest in often secretly rise later; meanwhile, the hot coins you follow daily tend to fall into consolidation. If you're unsure, try small positions to test the waters—don't miss opportunities easily.
Human weakness is the tool that manipulators love to exploit. Holding large positions often ends in liquidation because you are already on the exchange's liquidation list. Just after you cut losses on a short position, the price begins to fall—this is no coincidence. The manipulators want to trick you into selling to reduce pressure before they continue to push the price down. Similarly, when a short-term rebound stalls just as you're about to be squeezed out, manipulators won't let you easily run away; once you take profits and sell, the price may start to rise again, essentially testing the market's capacity to absorb the move.
Emotions themselves are traps. The more excited you are, the closer the market is to a sharp decline. When everyone is wiped out and has given up completely, various assets tend to move in sync, forcing you into FOMO (Fear Of Missing Out) to buy in.
Honestly, over 80% of the market movements in the crypto space show obvious signs of manipulation. To survive, strict position control is the baseline; learning to fight back is the best strategy. Until you understand the manipulators' tricks, do not enter lightly, or you will be like fish on a chopping board.
In the end, trading is not about luck but about patience, resolve, and timing. Protect your principal, stay calm, and you can stand firm in the next cycle.