$BTC $ETH Why do most people lose money when shorting coins that are topping the gainers list?
A lot of people see a coin surge and climb to the top of the gainers list, then instinctively short it at a high level. This is also a major source of losses for many traders.
The maximum loss on a long position is your principal, while the profit potential is unlimited; shorting is the opposite. The maximum profit comes from a drop to zero, but if the market keeps rising, losses can expand without limit. Coins on the gainers list often become a graveyard for bears.
Most coins that can surge to the top of the gainers list are driven by market hype and FOMO, with retail money flooding in. At that point, shorting is not a bet on chart patterns, but a bet that market sentiment will cool off quickly. Some coins have very small circulating supply and can easily trigger a short squeeze, stopping out bears before prices keep rising. Many pullback signals are just traps to lure in shorts.
On top of that, perpetual futures funding fees keep eating into your position; the longer you hold, the higher the cost, and your mindset can collapse very easily.
In crypto trading, what matters is not guessing the top precisely, but how long you can survive. You can keep an eye on coins on the gainers list, but never force a counter-trend short. Missing a move is no big deal, but fighting sentiment at a high level is basically handing your money over to the market.
I only share real-world survival experience from crypto trading. No hype, no empty promises. If you keep losing money and restarting your trading over and over, you can reach out to me. I’ll help you make trading simple.#BTCReaches$80000
A lot of people see a coin surge and climb to the top of the gainers list, then instinctively short it at a high level. This is also a major source of losses for many traders.
The maximum loss on a long position is your principal, while the profit potential is unlimited; shorting is the opposite. The maximum profit comes from a drop to zero, but if the market keeps rising, losses can expand without limit. Coins on the gainers list often become a graveyard for bears.
Most coins that can surge to the top of the gainers list are driven by market hype and FOMO, with retail money flooding in. At that point, shorting is not a bet on chart patterns, but a bet that market sentiment will cool off quickly. Some coins have very small circulating supply and can easily trigger a short squeeze, stopping out bears before prices keep rising. Many pullback signals are just traps to lure in shorts.
On top of that, perpetual futures funding fees keep eating into your position; the longer you hold, the higher the cost, and your mindset can collapse very easily.
In crypto trading, what matters is not guessing the top precisely, but how long you can survive. You can keep an eye on coins on the gainers list, but never force a counter-trend short. Missing a move is no big deal, but fighting sentiment at a high level is basically handing your money over to the market.
I only share real-world survival experience from crypto trading. No hype, no empty promises. If you keep losing money and restarting your trading over and over, you can reach out to me. I’ll help you make trading simple.#BTCReaches$80000
