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I Stopped Losing Money the Day I Learned the Difference Between Pullbacks and Reversals
Dipjyoti Sharma3 min read·Just now--
I used to think every drop in price meant one thing: “The market is crashing.”
So I’d panic.
I’d sell too early… or worse, I’d short the market right before it shot back up.
And just like that, I kept losing money — not because I didn’t understand trading… but because I didn’t understand one simple thing:
The difference between a pullback and a reversal.
The day this finally clicked for me, everything changed.
My Biggest Mistake (That Most Beginners Make Too)
When I first started trading, I believed:
- Price going down = trend is over
- Price going up = trend has started
Sounds logical, right?
It’s also completely wrong.
What I didn’t realize was that markets breathe. They move in waves — not straight lines.
And those small counter-moves?
They’re not always reversals.
Most of the time…
They’re just pullbacks.