I've been in the crypto space for so many years, witnessing too many people (including myself) repeatedly fall into the same traps: hesitating at the start of a rally, being swallowed by FOMO at the high point, and finally getting stuck at the top. "Chasing highs and selling lows" has almost become the standard way for retail investors to lose money.

**Why do we always make decisions at the wrong times?**

When a coin is consolidating at the bottom, you think it's "boring" and refuse to touch it. Turn around, and it has already surged 50%. Anxiety starts to spread, but you still stubbornly say "wait for a pullback." What happens next? It breaks previous highs, the community goes wild, and finally, overwhelmed by psychological pressure, you rush in—only for the market to turn around immediately.

This is actually human nature being precisely targeted by the market:

Seeing others make money while you lose more hurts even more, and you're afraid of missing the last train (FOMO); every day, your eyes glued to the K-line, your mood driven by tiny fluctuations, ultimately getting shaken out; buying and selling based on "feelings" without clear entry and stop-loss standards.

Even more heartbreaking is that the market structure itself is extremely unfavorable to retail investors. The data for 2025 shows: Bitcoin dropped 30% from its high of $126,000, high-leverage retail traders are accelerating losses due to liquidation mechanisms, while institutions easily mitigate shocks with risk control tools. Retail investors not only have to contend with the market but also face information gaps, tool deficiencies, and psychological breakdowns.

**So how can we win? By aligning with institutional trading discipline.**

First: Set clear entry conditions. Don't buy just because "it feels right," but wait until major support levels (like the 61.8%-65% Fibonacci retracement zone) are hit. With rules in place, it's less likely to be driven by emotions.

Second: Define your stop-loss line. Understand how much you can lose at most, and exit once reached—don't gamble on the market reversing. This is the last line of defense for protecting your capital.

Third: Manage your position size. Don't go all-in at once. Build positions gradually, take profits in layers, so that volatility can't wipe out your psychological defenses in one go.

Crypto market volatility is an objective reality, but your response isn't. Spend less time staring at the charts for a minute, and more time thinking about your rules for a minute—that's the starting point for retail investors to turn the tables.