I haven't updated articles for everyone in the past six months, and the core reason is that I experienced the largest drawdown of my career. Today, I hope to share my insights to help some friends who are still in a low point.
The reasons for the drawdowns are as follows:
1. The contract system was not perfect at the time. The position design was unreasonable.
2. Personal judgment ability regarding the cycle position was insufficient. The expectations for trades were incorrect.
This is practically reflected in holding positions when I shouldn't, and jumping ship too early when I should. Secondly, it manifests in an inappropriate aggressiveness in position size. At the beginning of the market movement, when I should have increased my position size, I didn't; and when the market was in a range, I increased my position size. This is one of the important reasons I couldn't hold onto the fruits of victory. Additionally, my ability to judge the position in the cycle is not mature enough, leading to opposite operations in the face of two completely different expected market conditions: being appropriately aggressive outside the range, while taking profits quickly in the rebound inside the range. Now, looking back at my inner feelings, it's a mix of emotions.
In mid-2021, I left the exchange and started full-time trading, while also opening a real account that everyone can check. I haven't made any resets or deletions; it's a real record of all my profits and losses. You can also see that my account quadrupled in just three days recently, with profits close to $200,000. Everyone only sees my profits, but may not have noticed my previous drawdowns. Since the establishment of the channel, my real trading members and I have always been profitable in spot trading, but in the last round, the contract system was not perfect enough, leading to many spot profits being used to pay tuition for the contract system. I have always adhered to the principle of saying what I mean and being truthful, so I also sincerely share with you the growth and insights that previous drawdowns have brought me. I believe this kind of sharing is more helpful for improving your investment trading abilities than any technical analysis sharing. To be honest, this past six months have been the darkest period of my full-time trading career. It has also been the most stressful time, facing doubts from the internet and misunderstandings from those around me. I have lost count of how many bowls of tears mixed with rice I've eaten in these six months, and how many sleepless nights I've experienced.
If you ask me what ultimately helped me pull through and create a new personal account profit high, I believe it is each firm stop-loss and a resilient heart. I think those who have experienced the market for a while will resonate with me.
I want to emphasize again the importance of firm stop-losses. If it weren't for my consistent and strict stop-losses, I definitely would not have survived to today and would have been killed by the market. I shared a video about liquidation on my YouTube channel, and I now have a deeper understanding that I want to share with everyone. My mindset now is more determined than ever that stop-losses are essential for survival. Not taking stop-losses is not confidence; it's insecurity. Let me delve deeper into the mindset of those who do not take stop-losses: they believe opportunities are scarce and fear they won't have good opportunities again. Now, you can let me lose as many times as needed, as long as it aligns with the logic of the stop-loss system, I will firmly take the stop-loss. Because I know deeply that there are too many opportunities in this market. There are at least two major cycles in the cryptocurrency market every year. Even if you miss this whole cycle, so what? The next round will come; just make sure not to miss the rebound orders. Although I've gained quite a bit from my own trading this round, I know clearly that I still have many shortcomings and need to keep pushing forward. After saying a thousand words, any trade is just a drop in the ocean of your trading career; do not lose the entire ocean because of this one trade. A resilient and calm heart is your strongest weapon.
