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Dare to trade. Dare to win.
Today's trading experience made me deeply reflect on my investment strategy. When ETH approached the previous high of 3532, I overconfidently chose to shorting. However, the market immediately taught me a lesson, as the subsequent Candlestick strongly pumped, completely shattering my judgment.
Looking back at this operation, I realized that I made several key mistakes. First, although 3532.83 is indeed an important resistance level, I acted before the price actually reached this level. Second, I overlooked other important technical indicators, such as the weakening signal of the Candlestick pattern, changes in trading volume, and the trend of the MACD indicator.
More importantly, I did not fully consider the short-term trend. By revisiting the chart, it can be seen that the 7-day moving average (MA7) is still curving upwards, which clearly indicates that the short-term rising trend has not yet ended. This signal should have made me remain cautious, rather than rashly shorting.
This experience highlights an important trading principle: even when approaching a resistance level, trades should not be made solely based on subjective judgment. The correct approach is to wait for the market to truly show signs of weakening, while also conducting a comprehensive analysis using multiple technical indicators. Otherwise, the so-called "resistance level" may only exist in the trader's subjective perception, rather than in the objective reality of the market.
Overall, this mistake reminds us of the importance of maintaining objectivity, rationality, and patience in trading. Being overly impatient or relying solely on a single factor to make decisions often leads to unnecessary losses. In future trades, I will place greater emphasis on comprehensive analysis of market signals and strictly adhere to trading discipline to improve the accuracy and stability of investment decisions.