There are quite a few frens in the crypto world who stare at the K-line every day, yet always end up losing more than they gain. Recently, I met an old trader whose confusion is very typical: "I clearly follow the signals strictly, so why am I continuously losing?"
It wasn't until we chatted in detail that we discovered the problem—his entire operation is surprisingly based on a single technical indicator. Entry relies on one signal, and exit also depends on one signal. No wonder he keeps getting trapped by the market repeatedly.
**Why Single Signal Trading is Destined to Fail**
Imagine trying to build a skyscraper with a brick and tie an elephant with a rope; this is the logic of relying on a single condition for trading. The market is multidimensional — liquidity, capital, sentiment, and technical aspects are all interacting. Judging based on just one dimension is like walking a tightrope blindfolded.
A trading system that can truly achieve stable profits is fundamentally based on "multiple confirmations." By overlapping several independent market conditions, an advantageous resonance is formed. This does not increase complexity; rather, it improves the winning rate.
**"The Great Way is Extremely Simple" is misunderstood**
Many people equate "the greatest way is the simplest" with "reducing the number of tools", which is a serious misunderstanding.
The essence of simplicity is to see through the cycle of confrontation, panic, and greed between buyers and sellers, and the differentiation of trends and counter-trends. It is an understanding of the underlying logic of the market, rather than the length of a list of tools.
Logic can be simplified to just three things - price, time, and volume. But your execution system must be complete. You cannot act hastily just because the understanding is simple.
**Condition Configuration for Different Trading Styles**
Aggressive traders (frequently monitoring the market, seeking high returns): 3-4 conditions are sufficient. Signals trigger frequently, providing more opportunities, but they need to withstand volatility pressure.
Conservative traders (low-frequency operations, risk-averse): It is recommended to have 5-6 conditions. The number of individual trading opportunities decreases, but the win rate for each order significantly increases.
**Common Characteristics of Stable Traders**
They never rely on luck to gamble on market trends. Instead, they use a complete set of proven systems to convert market uncertainty into a probabilistic advantage.
In an environment where Bitcoin liquidity fluctuates and Ethereum trends change, this way of thinking becomes even more important. Those who stick to a single signal will ultimately be reduced to the market's.
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There are quite a few frens in the crypto world who stare at the K-line every day, yet always end up losing more than they gain. Recently, I met an old trader whose confusion is very typical: "I clearly follow the signals strictly, so why am I continuously losing?"
It wasn't until we chatted in detail that we discovered the problem—his entire operation is surprisingly based on a single technical indicator. Entry relies on one signal, and exit also depends on one signal. No wonder he keeps getting trapped by the market repeatedly.
**Why Single Signal Trading is Destined to Fail**
Imagine trying to build a skyscraper with a brick and tie an elephant with a rope; this is the logic of relying on a single condition for trading. The market is multidimensional — liquidity, capital, sentiment, and technical aspects are all interacting. Judging based on just one dimension is like walking a tightrope blindfolded.
A trading system that can truly achieve stable profits is fundamentally based on "multiple confirmations." By overlapping several independent market conditions, an advantageous resonance is formed. This does not increase complexity; rather, it improves the winning rate.
**"The Great Way is Extremely Simple" is misunderstood**
Many people equate "the greatest way is the simplest" with "reducing the number of tools", which is a serious misunderstanding.
The essence of simplicity is to see through the cycle of confrontation, panic, and greed between buyers and sellers, and the differentiation of trends and counter-trends. It is an understanding of the underlying logic of the market, rather than the length of a list of tools.
Logic can be simplified to just three things - price, time, and volume. But your execution system must be complete. You cannot act hastily just because the understanding is simple.
**Condition Configuration for Different Trading Styles**
Aggressive traders (frequently monitoring the market, seeking high returns): 3-4 conditions are sufficient. Signals trigger frequently, providing more opportunities, but they need to withstand volatility pressure.
Conservative traders (low-frequency operations, risk-averse): It is recommended to have 5-6 conditions. The number of individual trading opportunities decreases, but the win rate for each order significantly increases.
**Common Characteristics of Stable Traders**
They never rely on luck to gamble on market trends. Instead, they use a complete set of proven systems to convert market uncertainty into a probabilistic advantage.
In an environment where Bitcoin liquidity fluctuates and Ethereum trends change, this way of thinking becomes even more important. Those who stick to a single signal will ultimately be reduced to the market's.