Why Most Traders Fall Into the Same Trap Every
Market Cycle
If your portfolio drops 70%, you now need nearly 300% gains just to recover.
At 80% loss, you’ll need close to 400% just to break even.
This is where real psychological pressure begins.
Should you hold?
Should you replace some coins?
Should you exit at a loss?
Most people end up waiting for a lucky pump.
The truth is simple: every market cycle creates a new psychological trap.
After the 2021 bull run, many sold too early and regretted missing big upside.
This cycle, many held too long and got stuck in losses.
And the next cycle will punish emotional decisions again.
Emotions repeat. The victims just change.
Smart traders don’t choose between investing or trading.
They combine both in structured stages that protect capital and grow it.
From real experience, steady compounding beats chasing miracles.
To recover a 70% loss, you would need about 13 winning trades at 10%,
or more than 22 trades at 5%.
This is why monthly targets are smarter:
Strong markets: 8–10% per month
Sideways markets: 3–5% per month
No stress. No luck. Just consistency.
Discipline and risk management build real profits.