Why is volatility a trader's nightmare and paradise?

Have you ever thought about why some people make ten times their monthly income from fluctuations, while others lose everything?

Fluctuation refers to the drastic changes in price over a short period. BTC was up 10% yesterday and down 15% today — this is high fluctuation. In comparison, the US stock market may only fluctuate 10% in a year, while the crypto market is like a roller coaster.

Why is crypto so crazy? The main points are: the market is still very young, and a single piece of news can trigger millions of funds flowing in; the total market value is relatively small, and the actions of large holders can cause waves; retail investors operate emotionally, with chasing highs and cutting losses becoming the norm.

What impact does it have on you?

Profit Opportunity: Significant price fluctuations mean there is potential for profit in the short term. Some people double their investments in a day thanks to volatility.

Risk of losing money: The same fluctuation can instantly liquidate your account. Without risk management, a black swan event can destroy all your investments.

What to do?

It's not that volatility is bad; the key is how you use it. Setting stop-losses, controlling positions, and not chasing highs or cutting losses—these fundamentals are the lifesaver. Volatility itself is not the problem; the problem is greed.