Bitcoin Forum

Sometimes I find myself trading against the market, swimming against the tide!
This happens occasionally. When the market reaches a significant level in our favor, I feel that it's time for it to reverse and go down—even without any specific signals. Conversely, when the market keeps declining, and I anticipate further drops, I still can't resist opening a long position. It's not a regular occurrence, but when it does happen, I end up suffering losses.

Please give me advise how can solve this.

Experienced investors sometimes do this like tend to buy more in bullish times whereas ordinary investors like us tend to overbuy and buy in bearish times. When the market starts to fall, some investors get scared and they think that the price of the currency may go down further and they withdraw their holdings due to that fear and refrain from buying more.

In my opinion, most experienced investors prefer to continue buying in every price trend and get more profit during the right bullish period. Swimming against the tide means embracing higher profits and staying ahead of risk-free investing.

I seems not to understand your point here and why do you think experienced investors would do that? Like I know no experience investors does that including me I can't do that,  why should I venture into the market while at the support level instead of accumulating at the dip or when there are serious resistance in the price. I think still need to re-read your statement before finally posting, except isn't what I am thinking.

Down to op, well I can see any reason why you can't exit the market when you see that you are losing on a long position. Usually if you don't understand the trend or if you haven't confirmed it properly from your analysis then I would advise to stay clear from the market and besides trading isn't that easy also not for everyone to trade.

You can do DCA to keep accumulating bitcoin gradually and your chances of losing them are very slim instead you would be on profits immediately there's slight change in the market.

That is trading for you. What you will need to study more about is where the market is going. Recently the market is somehow bullish. If the market price of a coin increases and those indicators are telling you to go short and you open a short position, you may start to lose as the price of the coins continue to increase. During bear market, the opposite can happen. Day traders are the ones they will experience what you are taking about. This is one of the reasons day trading is very risky.

That is your strategy and approach to trading, nobody can give you any advice to solve this because we also do not control the market and our advice could also be wrong and cause you losses. If the market is depreciating and you think your best shot is opening a long position, then that it is up to you, you might get it right sometimes. That being said, if you are not gaining from trading as you would like, then maybe you should take a break to analyse to decisions and strategies.

You need to learn more about self control so you will not trying to trade when the market reverse. That is happens to myself many times but I still trying to learn about self control so I will not waste my money to open trade. We can not against the market when is reverse without analyzing where the market will move. If we are not sure with the market situation, that will be the time for us to hold ourselves and waiting for the next sign to enter the market. There is no other way for you to leave the market if you can not control and hold yourself. You will have many times to enter to the market especially when the market gives the sign to you to enter. You don't have to force yourself to open trade just to chase the profit because that can make you lose your money.

Well charts could change instantly especially if you are using an extensive chart analysis. Though could make a wrong impression if a fundamental news carried out suprisingly.

Many traders find it unfortunate when they feel trading against the market but what could we do? Sometimes it all about a lucky position.

When you want to swim against the tide, you must know how to do this through learning and practicing. By learning, you will know that you only can trade like this if you use leverage or futures trading, but again through learning you will surely know that Leverage/ Futures trading is more risky than Spot trading. Hence, you can stop there and don't touch leverage/ futures trading.

Consider about risk and how much you have lost so far with swimming against the tide. Then you will find many reasons to stop this trading hobby that causes you so much losses.

Every trader has experience this when trading before therefore it is a normal thing that happens but when it happens to you always then there is a problem and you need to stop trading and go back to learning how to analyze the market again. No trader is above learning therefore when you encounter an issue, you should study the market again and do less of trading and more of learning. You are getting your interpretation of the market wrong this is what is making you get more losses than wins. At times it could be your brain playing a trick on you so next time when you read the market and think you should open a long position, open a short position instead and you might be smarter than the market this time. Trading should not be guess work though so learn how to interpret the market more accurately so you do not get it wrong.

I would say if you're not trade against the market, you're not a trader.

If we're only following the market, no one will lose in trading because the price will keep increase, you don't have to be a trader in order to make money when the market is bullish. But, you will earn smaller than people who buy at once in the beginning and sell at the peak.

It's easy to make money during bullish, but only some people can make money during bearish, they're traders!

What i may have to say here is that trading could be unpredictable to some extent, there are situations whereby you will expect for more bear while what you will keep on seeing is just a bullish trend while the same can as well occur in reverse and opposite direction, we need to know well on the procedures to study the chart flow, it may intend to go bearish while all you could be seeing is bullish, all these happens often time and traders are losing at the cause because they are more focused on one direction and pattern only on their trades.

This is no big deal in opinion, I would just advise myself not to start such position after I must have experienced loss on a few times of trying the strategy. If actually it's a strategy that helps you to earn more profit, you will be happy to continue using it but since it's a bad strategy, I see no reason why you will find it difficult to stop.

Doing it on crypto is suicide since typical crypto trader behavior is always riding the wave due to the fomo which means the tide is always strong if there's a trend. Waiting for the correction is the perfect move instead of buying against the tide while there's still a trend.

Some sign that correction is already at play are the price decrease sharply, sudden low trading volume and no follow hype about the project on the social media.

But I preferred buying tokens before the price rally rather than buying when there's already a trend since the downside is minimal while the upside has a lot of space for profit once the coin pump already. Just be patient if you didn't buy early.

I always do that before because of a lack of knowledge about divergence where you think reversal will happen at the target price until you open a long position at that area but it keeps declining and hit your stop-loss the result is negative profit.

You can avoid such a scenario it needs patience but first learn SMC to catch divergence and SMC will also give you an idea of where are the liquidation area and only enter a position at the "FVG" fair value gap.
Also, learn about reversal patterns and combine it with SMC you will know where the divergence is once you find the bullish divergence signal use the SMC method to know the liquidation area and where to enter.

If you will do it again and again and you know you are losing on that strategy, then something is wrong with you. You need to pause for a bit, and think why you are going to such path? Also, as you go thru your trading journey, for sure you will pick-up a thing or two of some tricks that you may need while you are doing your strategy.

In other words, if you want to minimize losses, just stop when you feel you are continuously losing your targets. Don't chase your losses and you will hear these phrases more on gambling side but it is also true with trading.
> Change tactics if you think there's alternative approach
> Don't use your savings just to augment your losses and continue again
> Skip for a while, a short pause may clear your head

the sole reason you trade against market is because your ego, tune it down then you can easily avoid bad trades.

i have seen so many such cases with newbie, thinking they know better than the veteran who did so many TA to determine entry point and at the end of the day always liquidated.

one thing you need to know, the market are hunting for these trader with high ego thinking they can be right and other people are wrong and the whales are profiting big time from it. avoid it by trading based on technical analysis.

Since trading is a very risky activity, you must analyze the market. Otherwise you may lose your capital And trading against the market is not very easy. Since we often do not easily understand what the future of the market is going to be like, you must be careful. Lest you go against the flow and lose your money. For this you must be strategic and be in touch with skilled traders. You can trade for it in small chunks. Then you gain but slowly and lose but not much. As a result, you can overcome yourself in all aspects.

But how many traders are succeed in trading against the market? I think this percentage will be very low, profits will be depend on the luck if we trade against the market, some pro traders can do that, it's not possible to everyone i think. But its true that a traders have to trade sometimes against the market, both of experienced they have, most of the times i lost when i am trading against the market trend.

Do your TA analysis before opening a trade. First thing I learnt was to never trade against the market. If the market is in an uptrend or downtrend, you follow the trend. You don’t enter or exit trade based on how you “feel”. If you are trading with your emotions unchecked, you will lose no matter how good your trading setup is because you are yet to discipline yourself to overcome your greed and fear.

Knowing the direction of the market where to go to, it is important to know. Trading against the market for trade actors is not foreign because they may also have done it. For me, trading actors who carried out these actions could be said that they were carrying out their trade strategies and approaches to be able to achieve goals through the pathway. If you often find yourself trading like that, then it is not wrong if someone says that it is the approach you take.

I rarely give trade advice because it is wrongly interpreted and can be considered pretentious to understand if the situation is not as I suggest.

It’s pretty easy once you know how many losses you can take. It will be just a certain percentage of your initial entry into the market.

It’s important to remember that in trading, consistency is key, and setting up stop limits can help you avoid losing a lot of money. Be careful when making more trades, and make sure you have the capital for them.

Trading can never be perfect, and the right risk management is key to winning.

Agree with your opinion, trade carefully and stabilize your capital first before trading. Every time we trade, the first thing we have to prepare is to accept the risk in trading, because trading doesn't always produce profits, but we have to be consistent. take care, then take care of our emotions and mental health so that our trading runs smoothly without us being hasty in making decisions, for every trade we have to have financial management so that we can measure our losses and profits while we are trading.

If you find yourself making same mistake again and again, it shows that you’re not emotionally sound to be a trader yet. The market keeps telling you that you’re taking a wrong direction and you should stop because of the losses you’re always getting but if you turn deaf ears to those signs and keep your mind optimistic to what you’re not sure of, you’ll continue getting those losses. Go back to your drawing board, learn well where those mistakes keep reoccurring and know when the market reaches there all the time. Analyze that point very well and take corrections, that’s the only way you can reduce those losses. Emotions and psychology are not thought in trading, you’re the one to learn and master it yourself.

Counter trend trading is really that something that you should really be avoiding as much as you could as a trader, specially if you are someone who do make out some daytrades then it will really be that your
main concern on which making up some trend opposing kind of thing on which we know that this is really that indeed common since we are dealing with an unpredictable and random market.
Same goes into those who do make out some futures or to those who do make out some scalping too. Never goes against on the market trend yet this would definitely be making your trading capital blown.
On the moment that you are already experienced then you would be able to distinguish or would really be able to observe it out that you are really that needing to pass up or have a break when the market
is really that having that extreme volatility on which it is really just that normal that you should really be having some break or trying out to observe. On the moment or time that you've seen some
entry opportunities then this is the time or moment that you do make yourself having such action on which it will differ into each trader yet skills and knowledge would really be in different levels.

Well there is no easy answer to this question. IF there was then everybody would be sitting at home and day trading and then trading wouldn't exist people everybody would make money and nobody would lose money. If nobody loses money then trading can't exist. You need someone to lose money so you can make money.

You can try and use indicators, or fundamental analysis however what you need is experience to know which way the market will go. Stock market is similar. It opens upwards, people chase some longs and then it reverses. And once it reverses people take a loss and go short and it reverses once again. Stopping them out two times. And people get frustrated and revenge trade and lose even more money. This I guess is just how these markets work. No manual out there on how to beat the market you just need trading experience.

It's no need beating around the bush about why you suffering loss, the solution is with you which is you have to change your trading approach by following the market trend not countering it, and knowing when to take profit at the appropriate timing without going greedy about it. I know some traders have this habit of trading against the market trend  because they believe their analysis are right but more often they lose with each position they take especially if it's day trading.

Much of the losses I have incurred in trading when I was regularly trading were from counter trend trading where I had often assumed a trend to be a fake-out thinking it's going to make a reverse immediately after a few up's. So I suspect this could be where op problem of trading against the trend is coming from.

There is no easy strategy in trading, even if you are moving with the flow of the market, there could be a reversal and you'll lose, there is no guarantee in any trading strategy one uses, you basically have to minimize your losses and trade only when you are sure you are in your right emotions and when you have acquired the necessary skills. Nobody controls the market, so no matter the strategy, we cannot predict what is going to happen in the future, so managing risk is crucial.

True, whether you would really be getting in line with the trend or would be opposing, there's no assurance that you would really be ending up profitable. This is why it would really be that best
or matter the most on how well you do drift yourself in towards the market movement on which of course it will really be determining about your experience and knowledge towards it.
There's no way that you could be able to make easy trades even lets say that you've been long time on dealing with the market. There's no such thing about being predictable nor really that
easy to determine on where it would be going. Therefore, if you do want to survive then you should find up your own ways on how to do it. It all matters with your own strategies and methods.

You need to develop a strategy that relies in something other than your instinct, if not then this will keep happening to you, however in order to do this you will need to study the markets for months, and I am not so sure that someone that seems to sometimes allow for their instinct to take over can do this, because it is likely you may miss some good opportunities during that time and then you may regret not being on the market at the time.