90% of Traders Lose Money Because They Are Too Smart: Are You Among Them?

Important Discipline Over Predictions. Execution Over Analysis
Many people enter the crypto market believing that: you must be skilled in technical analysis, understand Japanese candlesticks, master MACD, RSI, Elliott waves… to make money. But the harsh reality is: the more “skilled” and the more you trade, the more you often lose heavily.
After years of observation and experience, I realize a simple truth:
The crypto market does not reward the smart—it rewards disciplined people.

I. The Market Is Not Short of Skilled People, But Very Short of Persistent People
Crypto is a harsh environment. Volatile swings, constant news, ongoing FOMO, relentless FUD. In that environment:
Smart people want to buy the dip precisely.
Smart people want to sell at the top.
Smart people want to optimize every wave.
But because they seek “perfection,” they trade too often, change strategies constantly, and ultimately… lose due to emotions.
Meanwhile, the “dumb” person—in a positive sense—only does one thing:
Set rules → Follow rules → Repeat.

II. Three “Dumb” Principles That Help You Survive Long-Term

  1. Maintain Your Position, Avoid Continuous Trading
    I don’t trade constantly. I don’t buy and sell every day. I don’t try to catch every small move.
    When the market drops: don’t panic.
    When the market moves sideways: don’t get impatient.
    When it rises sharply: only take partial profits, let the rest run.
    Many investors lose not because they pick the wrong coin, but because they trade too much. Continuous trading causes:
    Higher fees
    More mistakes
    Emotional influence
    In crypto, doing fewer things correctly is more important than doing many things right.

  2. Follow the Trend, Avoid “Junk Coins”
    The market is always full of:
    Meme coins
    “Fast airdrop” projects
    Tokens up 200% overnight
    But behind those are often:
    Low liquidity
    Susceptible to manipulation
    Sudden collapse risks
    I focus only on assets with:
    High liquidity
    Real-world applications
    Strong communities
    Clear cycles
    For example:
    Bitcoin – leading asset in the cycle.
    Ethereum – platform for DeFi and smart contracts.
    Not because they are “absolutely safe,” but because they:
    Have clear cyclical history
    Are less manipulated
    Are easier to manage risk with
    Following major trends is much easier than chasing “10x opportunities.”

  3. Divide Your Capital, Always Leave an Exit
    I split my capital into many parts, never all-in.
    Basic principles:
    Don’t put all your funds into one purchase.
    Don’t put all your funds into one project.
    Always keep reserve cash.
    Crypto can increase 50% in a week, but can also drop 70% in a month.
    Long-term survivors are not those who make the most money—they are those who don’t get kicked out of the game.

III. Psychology Is More Important Than Technicals
Crypto is not just a chart game—it’s a game of emotions.

  1. FOMO During Bull Markets
    When prices surge:
    Everyone brags about profits.
    Timeline is all green.
    Positive news floods in.
    Investors often make mistakes:
    Chasing at the top.
    Increasing volume because “they can’t lose.”

  2. Panic During Bear Markets
    When prices plummet:
    Bad news spreads.
    Everyone says “the cycle is over.”
    Confidence collapses.
    Investors:
    Cut losses at the bottom.
    Exit just before recovery.
    The truth is:
    The market doesn’t kill you—your emotions do.

IV. Why Do “Too Smart” People Usually Lose?
Always want to optimize.
Always want to be precise.
Always want to control the market.
But crypto is a high-probability market, not an absolutely predictable system.
The most dangerous is:
A winning streak that makes you overconfident.
Leverage increase.
Higher volume.
And just one reversal can wipe you out.
Disciplined people are different:
Don’t change rules after one win.
Don’t break your system after one loss.
Don’t try to “gambler back” your losses.

V. The Power of Simplicity
Many seek:
Complex strategies
Advanced indicators
Trading bots
But in reality:
The simplest strategies repeated consistently produce long-term results.
For example:
Only invest idle funds.
Never borrow to trade.
Take profits of 30–50% and withdraw some principal.
Limit the number of trades per week.
This isn’t “cool” strategy. But it helps you survive.
And in crypto:
Surviving long enough is the biggest advantage.

VI. Investing with Idle Funds Is a Survival Principle
Never do:
Use living expenses.
Use tuition money.
Borrow from banks.
Borrow from friends.
Crypto assets are highly volatile. If you use essential money for life:
You’ll face pressure.
Pressure leads to bad decisions.
Bad decisions lead to losses.
Calm people always beat those under financial pressure.

VII. When to Buy? When to Sell?
A simple approach:
When the market is extremely fearful → buy gradually.
When the market is extremely euphoric → sell gradually.
No need to catch the bottom.
No need to sell at the top.
Just stay in the middle of the cycle.

Conclusion: “A Little” Dumb, Live Longer
Crypto is a place where:
Greed gets punished.
Overconfidence gets paid back.
Lack of discipline gets eliminated.
Long-term winners:
Are not loud.
Don’t boast daily profits.
Don’t try to prove they’re right.
They just:
Build systems.
Follow systems.
Repeat.
In a market full of temptations and chaos, “dumb discipline” is the highest form of wisdom.
Finally, remember:
The person who predicts the most correctly does not necessarily get rich.
It’s the one who makes the fewest mistakes and survives the longest.

BTC-3%
ETH-3,4%
TOKEN-7,61%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)