Many people's losses are not due to market conditions, but to that seemingly perfect timing for placing orders.
The most typical failed trades usually originate from small timeframes—5-minute charts, 3-minute charts, or even 1-minute candlesticks. You stare at the screen and suddenly "discover" something—huh, isn't this just a symmetrical structure? The highs are descending, the lows are rising, draw a line, and the pattern is established. The logic also makes sense, and with a flick of your finger, you place the order.
The problem lies precisely in this "appearance."
The trick that small-scale charts excel at is actually creating illusions. Volatility is essentially noise superimposed on noise. If you try to extract patterns from the noise, your brain will "cooperate" with you, completing a form of self-deception. In plain language, you think you're analyzing the structure, but what you're really doing is using subjective imagination to forcibly interpret those random fluctuations.
These kinds of trades often have several obvious common points.
First, the structure only exists on your screen.
Zoom out to a larger cycle, and the trend can't support this judgment; switch back to a smaller cycle, and you can "draw a new structure." The structure will automatically change according to your thoughts, which is inherently very dangerous.
Second, the entry logic is extremely precise, but the exit logic is vague.
You can clearly explain why you should enter now, but when it comes to "what if you're wrong," the answer is most likely: "Let's see first."
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.
9 Likes
Reward
9
6
Repost
Share
Comment
0/400
MissedTheBoat
· 10h ago
One-minute charts are really a harvest machine for newbies; that's how I lost money.
View OriginalReply0
SybilSlayer
· 10h ago
Whoa, isn't this talking about me? The part about the 5-minute chart drawing crazy lines is so true.
View OriginalReply0
Degentleman
· 11h ago
Bro, that was a hit right on the mark. I've been fooled by small-scale charts like this before. Staring at the 1-minute chart until my eyes blur, forcing myself to draw a perfect pattern, only to turn around and realize the daily chart can't support it at all. It's easy to talk about this, but really hard to do.
View OriginalReply0
SchrodingerWallet
· 11h ago
The illusion of the 5-minute chart is even less reliable than my stop-loss order
View OriginalReply0
gas_fee_trauma
· 11h ago
It's all due to small timeframes. I always hallucinate perfect patterns on the 1-minute chart, and then I end up losing money.
View OriginalReply0
WalletInspector
· 11h ago
Damn, this is the result of me looking at the one-minute chart every time...
Many people's losses are not due to market conditions, but to that seemingly perfect timing for placing orders.
The most typical failed trades usually originate from small timeframes—5-minute charts, 3-minute charts, or even 1-minute candlesticks. You stare at the screen and suddenly "discover" something—huh, isn't this just a symmetrical structure? The highs are descending, the lows are rising, draw a line, and the pattern is established. The logic also makes sense, and with a flick of your finger, you place the order.
The problem lies precisely in this "appearance."
The trick that small-scale charts excel at is actually creating illusions. Volatility is essentially noise superimposed on noise. If you try to extract patterns from the noise, your brain will "cooperate" with you, completing a form of self-deception. In plain language, you think you're analyzing the structure, but what you're really doing is using subjective imagination to forcibly interpret those random fluctuations.
These kinds of trades often have several obvious common points.
First, the structure only exists on your screen.
Zoom out to a larger cycle, and the trend can't support this judgment; switch back to a smaller cycle, and you can "draw a new structure." The structure will automatically change according to your thoughts, which is inherently very dangerous.
Second, the entry logic is extremely precise, but the exit logic is vague.
You can clearly explain why you should enter now, but when it comes to "what if you're wrong," the answer is most likely: "Let's see first."