#BTC资金流动性 Technical Analysis is essentially about finding patterns from historical trends, but these patterns can only be described using probabilities.
For example, when people see the double top pattern, many think that it will drop. Is that true? Not necessarily. Sometimes it will instead consolidate and continue to rise. Another example is the old routine of golden cross and death cross; does a golden cross definitely mean it will rise? It's not that absolute; it could very well just move sideways after the cross. One can only say that when a golden cross occurs, the K-line has already risen for a while, and the moving averages have been lifted to generate this signal, which indeed increases the probability of rising from that point onward.
But in the end, everything is just a game of probabilities.
There is a common misconception that many people fall into in trading: getting caught up in the gains and losses of individual trades. Regretting a loss and feeling proud of a gain. Frankly, this is meaningless. Even if you lose five trades in a row, it still holds no significance.
A verified trading system with a true positive expected value behaves like this: there will be periods of consecutive profits, and there will inevitably be periods of consecutive losses. This is normal and not a sign that the system is malfunctioning. As long as you trade enough times, the law of large numbers will gradually show its power, and the final account curve will definitely trend upwards.
When you truly understand this, your mindset completely changes. In the face of a series of small losses, you will remain calm. Since the final outcome is destined to be profitable, why should you stop loss, feel anxious, and toss and turn over one or two failures?
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AirdropFatigue
· 14h ago
That's right, most people are just killed by single-instance emotions and cannot see the overall probabilistic advantage.
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HappyMinerUncle
· 14h ago
You're right, it's really pointless to get caught up in a single transaction; the key is the system's win rate and risk-reward ratio.
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LiquidityNinja
· 14h ago
You're right, most people fail due to their mindset. No matter how perfect the technical analysis is, it can't withstand frequent stop losses.
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OptionWhisperer
· 14h ago
You're right, but it's easier said than done. There are not many who can withstand five consecutive losses without losing their composure.
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Web3ExplorerLin
· 14h ago
hypothesis: the real tragedy isn't the losing trades, it's the traders who quit before the law of large numbers kicks in... reminds me of byzantine generals problem but with portfolio psychology lol
Reply0
TokenDustCollector
· 14h ago
To be honest, most people fail because of their mindset; a single pullback scares them into random stop losses, and they don't really understand what the law of large numbers means.
View OriginalReply0
SchrodingerGas
· 14h ago
That's right, technical analysis is just a probability machine, but unfortunately, most people are still caught up in the gains and losses of individual trades, and their mindset has already collapsed.
#BTC资金流动性 Technical Analysis is essentially about finding patterns from historical trends, but these patterns can only be described using probabilities.
For example, when people see the double top pattern, many think that it will drop. Is that true? Not necessarily. Sometimes it will instead consolidate and continue to rise. Another example is the old routine of golden cross and death cross; does a golden cross definitely mean it will rise? It's not that absolute; it could very well just move sideways after the cross. One can only say that when a golden cross occurs, the K-line has already risen for a while, and the moving averages have been lifted to generate this signal, which indeed increases the probability of rising from that point onward.
But in the end, everything is just a game of probabilities.
There is a common misconception that many people fall into in trading: getting caught up in the gains and losses of individual trades. Regretting a loss and feeling proud of a gain. Frankly, this is meaningless. Even if you lose five trades in a row, it still holds no significance.
A verified trading system with a true positive expected value behaves like this: there will be periods of consecutive profits, and there will inevitably be periods of consecutive losses. This is normal and not a sign that the system is malfunctioning. As long as you trade enough times, the law of large numbers will gradually show its power, and the final account curve will definitely trend upwards.
When you truly understand this, your mindset completely changes. In the face of a series of small losses, you will remain calm. Since the final outcome is destined to be profitable, why should you stop loss, feel anxious, and toss and turn over one or two failures?
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