I have contemplated the essence of this issue; the root lies in their behavior, which excludes all human factors and interference, and makes money independent of emotions.
Investing in something, once it is entangled with personal emotional subjective judgment, can be fatal.
As long as you are affected by market emotions when investing, your returns will inevitably decrease or you will incur losses, without exception.
The father of quantitative trading, Simons, achieved an annualized return of 64%, far exceeding Buffett's 20%.
However, before this, Simons relied on 13 years of research into macro fundamentals to invest and make money, but ultimately did not make a profit and gave up, shifting to advanced mathematical models to earn money in the market by excluding any human emotional factors.
Human emotions are the greatest interference in investing.
In the cryptocurrency world, some people make money by trading, some by holding coins long-term, some rely on contracts, some farm airdrops, and some become KOLs to earn commissions and customer losses.
As long as one is making money, they are not affected by emotional factors.
Those who make money from trading have clear plans for why they buy, when they sell, and how much they earn. They don’t chase highs, don’t bottom fish, and don’t experience FOMO.
Those who make money by holding coins just buy, regardless of price levels, regardless of market emotions; they just buy Bitcoin, ignoring the right and wrong of the cryptocurrency world, and don’t care who becomes rich. They hold through at least two cycles.
Those who make money from contracts withdraw whatever they earn, always opening positions based on a set amount, with defined stop losses and take profits. If they are not making money, they take a break and seek new strategies. They are not influenced by emotions, do not carry positions, do not use excessive leverage, and do not open positions randomly.
Those who farm airdrops, regardless of whether airdrops happen or not, always persist in refreshing; if one doesn’t work, they move to the next, without getting discouraged or complaining.
Those who make money as KOLs do not sympathize with others' losses, and they do not feel moral guilt for their customer losses. Of course, they themselves will not engage in contracts, nor will they be dragged down by those making money; they also have no emotional interference.
Making money in the cryptocurrency world requires excluding all emotions. If you want to buy a coin and have a thought like, 'What if I miss out on making a fortune? What if others have bought a lot? What if others say it's great?' then you shouldn't buy it. The probability is high that you will be cut off.
Regular investment is the most difficult because it is slow; slowness is the most contrary to emotions. Not only is it slow, but one must also endure long-term losses. Once you develop emotions against the market, you have essentially given up. There will certainly be people who buy more when prices drop, buy less when prices rise, or buy more when prices are high and not buy when prices drop. Or they buy and take profits quickly instead of holding. I have written many articles about ordinary people regularly investing in BTC, not to say that investing and making money must involve BTC or regular investment. Rather, regular investment is a way for the most ordinary and skill-less people to earn money, as it allows them to exclude emotional interference. In contrast, clever people find it harder to stick to regular investments, while those with average abilities find it easier to do so. Not just in investing, but in anything, once emotions are involved, such as excitement, sadness, or pride, behaviors can become excessive and actions distorted. This leads to poor outcomes. Those great figures, why do they seek spiritual practice, go into seclusion, find masters, walk through deserts, or live in temples? It is essentially to dilute their emotions through these activities, as emotions increase the entropy of their actions. They do not bring good fortune but rather increase your burden. Without learning to exclude emotional interference, regardless of what skills you acquire or methods you learn in the cryptocurrency world, you will not be able to make money.
Those who are very successful in making money in the cryptocurrency world, you can ask them, and they will not be influenced by emotional interference.
When they make money, they smile slightly and move on to the next order; when they lose money, they also smile slightly and continue to the next order.
Nowadays, many people display behaviors of 'emotional cleansing' on social media, such as copying books, writing, practicing meditation, etc. Essentially, these are all attempts to actively wash away emotional interference.
This seemingly useless thing is actually very useful; people who are anxious and frustrated in life won't engage in these emotional cleansing activities. Instead, it is those whose lives are relatively smooth who often do such things. Of course, it's not that doing these activities makes their lives better; rather, such people do not make subjective emotional judgments in anything they do. They have a standard for what is good and what is bad, and once they cross that boundary of harm, they simply won't proceed; they won’t act based on emotions.
Whether it's good emotions or bad emotions, they are of no benefit to personal development. Being too happy or too excited can easily lead to excess; what we often refer to as being 'too high' is precisely this, and it can easily lead to issues. Being too down can also lead to a lack of energy.
Those in the cryptocurrency world who make a million U from ten thousand definitely do not suffer from emotional interference; the key is not how miraculous their methods are, but that they can restrain their emotional interference.
However, this matter cannot be achieved without going through three cycles; ordinary people generally cannot accomplish it. Those who can do so surely encountered an industry veteran who guided them through this.
