“How Traders Fail – Step by Step”

The market doesn’t take your money randomly – it exploits the psychological domino effect.
A small mistake can lead to a series of losses.

💥 6 Domino Stages Crushing Retail Traders

1️⃣False breakthrough
Retail Sees Breakthrough → Enter Due to FOMO.
Market makers collect buying liquidity.

2️⃣ Push the price to the retail order area
The price remains above the buy zone to boost confidence.
Retail thinks he’s “into the right trend.”

3️⃣ Hunting Stop Loss Order (Stop Run)
Rapid decline → retail panic.
Emotion: fear + shock.

4️⃣ Light Bounce (Dead Cat Bounce)
Retail hope: ‘Prices will rebound…’
Mistake: Holding a losing trade out of hope.

5️⃣Second strong collapse
SELL liquidity is completely absorbed.
Retail gives up → accounts burnt.

6️⃣ After retail burnout → Market finally moves with real trends
Market makers get enough liquidity to drive prices.

📌 In a typical chart:
False top breakthrough → FOMO
Returns the area filled with buy stops
Comprehensive stop loss capture
Small rebound brings hope
Then Dump/Pump is stronger, and vice versa

📍Emotions during surgery:
FOMO → Greed → Fear → Hope → Despair.

💬“The market won’t fool you – you’ll fall into its trap yourself.”

Understanding the domino effect will allow you to:
✔ Discover traps early
✔ Stop FOMO
✔ Think like a market maker, not a retail trader

Source link