Martingale in trading: a dangerous dance with fire

Martingale. The damn casino strategy that traders inexplicably brought to the cryptocurrency markets! I've seen this "genius" scheme turn deposits into dust faster than you can blink.

The essence of this devilish strategy is simple: lost money – doubled the bet, lost again – increased even more. And so on in a circle, until either the market finally shows mercy and goes your way, or your account is wiped out. Guess what happens more often?

I remember how I fell for this trap myself in 2018. I bought Bitcoin at 15 thousand, then at 13, then at 11... I thought I was smarter than the market! By the time the price dropped to 6 thousand, my money would have only been enough for a pack of cigarettes to smoke out of despair.

You might ask, "What's the catch?" The catch is that no trader has an infinite bankroll! In a casino, at least the odds are roughly 50/50. In the cryptocurrency market, however, prices can fall for months, and your "brilliant" averaging scheme will turn into a path to poverty.

What particularly annoys me is that the authors of such articles always beautifully outline the formulas and numbers. "Increase by 20%", "control the risks"... What risks, for heaven's sake, when you are blindly chasing a falling knife?!

Alright, let's face the truth:

1. This strategy works ONLY in a sideways market or with small price fluctuations.
2. In a strong downward trend ( which happens often! ) it will kill your deposit.
3. Psychologically, it is unbearable – to watch your losses grow with each new order.

Of course, I have met people who swore they got rich using Martingale. But for some reason, their screenshots always show only successful trades, while the series of failed averaging mysteriously disappear from the history.

And here is the bitter truth: Martingale is not a strategy for making money, but the last straw for a drowning trader. When you don't know how to analyze the market and are afraid to realize losses – you start averaging down and praying for the market to turn around.

If you want my advice - it's better to learn how to correctly identify trends and work with levels. Yes, it's more difficult than mindlessly averaging positions, but your wallet will thank you.

And to those who still decide to play with Martingale – good luck. You will need it. And a large deposit too.