!
During my days in the crypto world, I was the typical 'impulsive retail investor.' Whenever I saw a coin's price surge, I became envious and couldn't control myself, always eagerly opening short positions while thinking, 'This is too outrageous; it has to drop soon!' Especially when the price saw a slight pullback, I felt like I had grasped a lifeline and confidently increased my short position, completely unaware that danger was closing in.
Reality gave me a loud slap in the face. Almost every time I went short, it ended with liquidation, and after five consecutive liquidations, my wallet quickly shrank. The despair and helplessness I felt are still unforgettable.
One of the most painful experiences still lingers in my memory. At that time, I saw a coin's price skyrocket by 600%, and I was convinced I had found the 'ceiling,' thinking it was the perfect opportunity to short. So, I recklessly opened a full position with 40x leverage to short. Who would have thought that this coin would completely defy logic and surge another time! In that moment, my heart sank; I felt like I was being ruthlessly toyed with by the market, and I even had desperate thoughts of 'jumping off the roof.'
After experiencing these painful lessons, I finally summarized a life-saving principle: on the day of a price surge, absolutely do not go short. Even after several days of continuous increases, one must patiently wait until the first daily candlestick closes in the red before trying to short in small amounts at the day's high.
In the crypto world, never go against the trend. Those coins that surge up like a bolt from the blue are like wild horses running free, and it is impossible to predict their ceiling. A surge does not mean it has peaked, and going short is certainly not a belief worth holding onto. In this market full of uncertainties, setting reasonable stop-losses is the only truth that can help us survive in the crypto world.
As retail investors, our funds are hard-earned and cannot be used to vent our frustrations. The market does not care about our emotions; we must respect the trend. When you blindly short, you are only venting emotions, while the market continues to rise according to its trend. Only by staying clear-headed and respecting the market can we protect our principal and go further in the crypto world.
