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Taking this chart as an example, slightly forming a consolidation zone to cultivate retail investors' acceptance of the price range, most people will subconsciously think that it is already a low point; 2020 is a low point.
If 2150 is a high point, I remember when we shorted from 3900 to 3200, and from 2900 to 2400, most people were bottom-fishing again. If 2136 is considered a high point, not long ago many were shorting at 1900.
Don’t let the market cultivate your emotions. If you always go long in phases, you will almost never achieve a high risk-reward ratio because your long positions will also be closed at phase highs or lows.
Most retail investors find it easier to make money in choppy markets; in a trending market, it’s a bloodbath. Essentially, they are afraid to look at areas that haven’t been touched recently, because prices won’t stay here forever.
The purpose of a stop-loss is exactly that. Currently, at 2125, those who set stop-losses—even if they went long on Ethereum at 4900 with a 20-point stop-loss—would only lose 20 points.
Those who don’t set stop-losses, even if they shorted Ethereum at 4000, could get liquidated, and they still wouldn’t be able to profit at the current 2125.
The above is just an analogy; find a trading method that works for you and improve upon it.