So, please remember the following iron rules. There isn't much content, but every sentence is valuable. Share it with those destined to receive it!
Trading cryptocurrencies has never been something that can succeed easily. Every cryptocurrency enthusiast has to go through countless setbacks from the moment they enter the circle. Some people get knocked down, while others manage to stand up. The difference lies in whether they can turn the hardships in the process into nutrients for self-growth. Everyone has experiences, but not everyone is good at reflecting and summarizing.
Mu Qing's process of trading cryptocurrencies has also been full of setbacks. Looking back now brings many emotions. Today, I specifically sorted out the essence of it to share, hoping to help fellow cryptocurrency enthusiasts avoid detours.
I entered the market in 2014, trading cryptocurrencies for over 10 years. From initially entering the market with over 200,000, to now being a professional trader, I have built a wonderful family through this. I have summarized 8 major principles; the text is not long, but each is weighty. Whether you are new to the game or an experienced player, if you read this seriously, you can avoid 5 years of detours!
To make it easier for everyone to save, I specifically made it into a graphic. If you appreciate Mu Qing's valuable insights, feel free to like and follow!
The above 8 principles are mistakes I have repeatedly made in the past. Now I share them with everyone; please study them carefully, practice continuously, and achieve unity of knowledge and action. I hope to help fellow cryptocurrency enthusiasts avoid several years of detours.
Today I’m giving you some real insights. The words are short, but each one strikes at the heart. After reading, you will have an epiphany!
1. When you first enter the scene, don’t rush to make money; learn quickly. If you don’t even understand how exchanges might crash or how to cross-chain assets, or the concept of blockchain+, how can you possibly make money?
2. Experience more pitfalls, practice diligently, and ask fewer people. In the circle, 100 people have 101 opinions. Speculators think investors are fools, while speculators believe investors are parasites. A says this project is a great innovation; B thinks it’s just a conceptual machine; C says both are fraudsters... Who to believe? Don’t believe anyone, as there are scammers everywhere in the circle, specifically stationed at various traffic points, providing enticing services to newcomers.
3. The circle is very important. In my opinion, 99% of chat groups are at the level of the old men in the park at the village entrance, focused on casual chatting and occasionally sharing profit screenshots, which is not very meaningful. A quality circle can at least help you see and understand the facts of the circle, don't you think?
4. Investment is your own business. What does this mean? It means that ultimately, you must rely on yourself for investment. Others' analyses and thoughts are only for reference; you must conduct independent research and form your own investment framework. With a framework, you can have your own opinions. Don’t worry about what others say; their level may not be as good as yours.
5. Contracts +, short-term +, holding coins +, hair-pulling, NFT ++, which one is better? The one that suits you best. Currently, our group strategy is mainly focused on holding coins; if you have enough energy, we can help you with hair-pulling. Some people mention contracts, short-term, NFTs; to be honest, they are all looking for you to take the risk.
6. How can you find a hundredfold coin? If you don’t even understand the basic concepts, and you don’t know what the circle is about, but you keep asking questions, this mentality will never lead you to find a hundredfold coin; you might as well be shot. I want to emphasize that making money in the circle is not that easy; easy ways don’t make money. If someone wants to argue, saying someone bought a hundredfold coin with a contract of so many times, that is highly likely a scam.
7. Patience is the foundation of making money. You may need to learn for a long time and be deceived countless times to understand the situation in the cryptocurrency circle. It’s okay; cherish every experience of being deceived. These are lessons on the road to investment.
8. Adhere to the basic rules of the cryptocurrency circle. If you lose, you must admit it; if you are deceived, you must accept it. Experts often do not complain, while the weak like to blame others for being cut down like leeks and complain about unfair rules. When you have no ability to set the rules, keep quiet.
9. Learn while practicing. Some people say, 'I have learned so many concepts; I understand them, but it's still very abstract.' This is incorrect; you should learn while practicing, experiencing various projects. Of course, output is the best practice; you can also output content to attract friends and discuss together.
10. As long as you put in the effort, you can always become a big shot. I say this, and many people might disagree, thinking it’s nonsense. How many people are still just fodder? Remember, others being fodder has nothing to do with you; you need to focus on improving yourself. There’s nothing difficult in the world, just a lack of determination. If you want to argue, refer back to point 2.
What is the essence of trading? This is a question that every participant in trading needs to answer clearly.
I personally believe that the essence of trading is: using small means to gain large returns. What I refer to as 'using small means to gain large returns' does not refer to the leverage effect of margin trading we usually talk about, but rather the question of 'how to use smaller losses to fight for larger profits' in trading.
I personally believe that the essence of trading is: using small means to gain large returns. What I refer to as 'using small means to gain large returns' does not refer to the leverage effect of margin trading we usually talk about, but rather the question of 'how to use smaller losses to fight for larger profits' in trading.
Using small means to gain large returns is synonymous with speculation, which can be broadly or narrowly defined. Broad speculation permeates all aspects of our lives; it exists not only in trading but also in the spot market, and even in the process of living a life, it is a process of speculation. From the perspective of monetary possession, speculation can be defined as: seizing opportunities to invest, aiming for several times the return on investment. The purpose of speculation is very clear: to make money. Thoughts are thoughts, efforts are efforts, but the fact is that some people make money while others lose their capital. A careful analysis reveals that the reasoning is quite simple: most of those who lose money have not learned to use small means for large gains.
Using small means to gain large returns means 'making small sacrifices.' Yet even with 'small sacrifices,' many people are still unwilling to give. They want to gain large returns without any investment. The reason why a few succeed and achieve large returns is that they learn to 'use small means for large gains.' Thus, in this sense, two types of people emerge in life. One type is called 'great wisdom appearing foolish.' Such people are generous, have far-reaching vision, and do not sweat the small stuff. The other type is called 'great foolishness appearing wise.' These people are petty, have short-sightedness, and are calculative.
The process of trading for small gains is itself a process of cultivating humanity.
What is the relationship between technology, principles, and humanity in trading? I think technology solves the question of 'how to do it'; principles solve the question of 'what if I do it wrong'; and humanity solves the question of whether principles can truly be executed!
Therefore, humanity is the key to success or failure in trading; it is fundamentally important. No matter how skilled a trader is, the accuracy of predicting the market cannot reach 100%. What should be done? Rely on principles to compensate for the shortcomings of technology. However, even if a trader's principles are perfectly established, if they do not strictly enforce them during trading, they are as good as useless. Why do some principles become unenforceable? This is a problem of humanity.
Anyone who has engaged in trading practice shares a common experience: talking on paper and having real trades are two different matters. When not trading, one observes the market.
Often, with a higher accuracy rate and feeling good about oneself, why?
Because winning or losing has nothing to do with oneself. However, at the moment of true trading, another side of humanity is revealed: the idea of 'wanting to win but fearing to lose' fills people's minds. As a result, the plans made in advance and the principles established beforehand are thrown out of the window, leading often to small profits and large losses, ultimately resulting in failure.
It can be seen that humanity plays a key role in determining the success or failure of trading. If trading is seen as a war, technology is the tactics, principles are the strategy, and humanity is responsible for integrating the principles into the tactics, thus winning the entire war.
If we consider technology as water, then principles are the container, and humanity is responsible for putting the water in the container, preventing it from overflowing, and ensuring that there are rules and order.
If we consider technology as a religious belief, then principles are the ruthless laws, and humanity is the executor of the laws. When there is a crisis in the religious belief, the laws are used to mercilessly regulate human behavior.
If we consider technology as a sword, it should be a double-edged sword. If used properly, it can defeat the enemy; if used improperly, it can cause self-harm. Principles are armor, protective clothing; only by defending well can one attack effectively. Therefore, humanity is responsible for putting on the armor before drawing the sword, then going into battle. During the Three Kingdoms period, under Cao Cao, there was a general Xu Chu who fought passionately but ended up being shot by an arrow, just as Mr. Lu Xun said, 'It serves him right.'
It can be seen that a successful trader must possess three sufficient and necessary conditions: the combination of technology, principles, and humanity. Without any one of these, they cannot be separated. Principles without technology are empty; technology without principles is blind. Trading without sufficient cultivation of humanity will lead to failure. Ultimately, failed trading is a problem of humanity. Therefore, mature humanity, complete principles, and rigorous technology must unite to achieve the true meaning of using small investments to gain large returns!
The mindset for trading cryptocurrencies: the secret to stable trading in the cryptocurrency circle.
Recently, some friends have been asking me to share content related to trading. Actually, I don’t like to talk about these things. Because many people in the cryptocurrency circle are very impatient and want to make quick money; they are speculators. I am a slow-moving person who insists on value investment and long-term trading. So I consider myself an investor.
What investors say, speculators naturally cannot comprehend.
But I still can’t help but want to talk more. How much everyone can absorb is up to them. In this lesson, I will first discuss the mindset with everyone.
If you have been in the cryptocurrency circle for a long time, you may find that many long-term profitable traders always talk about mindset.
Does trading also require a mindset? So what is the mindset?
Actually, it’s quite simple. I understand the mindset in several layers:
1. Mindset: Maintain rationality, calmness, and discipline, without being controlled, disturbed, or dominated by market emotions. 2. Wisdom: Accumulate insight into the market and decision-making ability through long-term practice and learning. 3. Skills: Master the ability to analyze and operate trades, such as fundamental analysis and technical analysis. 4. Style: Develop your own unique trading style, such as trend trading or mean reversion. 5. Discipline: Establish trading rules that suit yourself and strictly execute them, maintaining patience.
These five points are interconnected, forming a person's trading mindset. If one does not have their own mindset, then all trades are essentially just luck; you might gain thirty or fifty points today, but sooner or later you will lose it back due to bad luck.
So I have never recommended that everyone follow others' trades. Because the logic of following others is that someone else is making money, and it has nothing to do with you. Once you get used to following others, it shows you don’t understand; you have no independent thoughts or ideas. Even if you can make some money by following others, it is merely luck; it does not belong to you. Once you leave the trader you are following, you cannot continue to be profitable. So if you want to make money in this circle, you must cultivate your own trading mindset.
Does trading also require a mindset? So what is the mindset?
Actually, it’s quite simple. I understand the mindset in several layers:
1. Mindset: Maintain rationality, calmness, and discipline, without being controlled, disturbed, or dominated by market emotions. 2. Wisdom: Accumulate insight into the market and decision-making ability through long-term practice and learning. 3. Skills: Master the ability to analyze and operate trades, such as fundamental analysis and technical analysis. 4. Style: Develop your own unique trading style, such as trend trading or mean reversion. 5. Discipline: Establish trading rules that suit yourself and strictly execute them, maintaining patience.
These five points are interconnected, forming a person's trading mindset. If one does not have their own mindset, then all trades are essentially just luck; you might gain thirty or fifty points today, but sooner or later you will lose it back due to bad luck.
So I have never recommended that everyone follow others' trades. Because the logic of following others is that someone else is making money, and it has nothing to do with you. Once you get used to following others, it shows you don’t understand; you have no independent thoughts or ideas. Even if you can make some money by following others, it is merely luck; it does not belong to you. Once you leave the trader you are following, you cannot continue to be profitable. So if you want to make money in this circle, you must cultivate your own trading mindset.
Does trading also require a mindset? So what is the mindset?
Actually, it’s quite simple. I understand the mindset in several layers:
1. Mindset: Maintain rationality, calmness, and discipline, without being controlled, disturbed, or dominated by market emotions. 2. Wisdom: Accumulate insight into the market and decision-making ability through long-term practice and learning. 3. Skills: Master the ability to analyze and operate trades, such as fundamental analysis and technical analysis. 4. Style: Develop your own unique trading style, such as trend trading or mean reversion. 5. Discipline: Establish trading rules that suit yourself and strictly execute them, maintaining patience.
These five points are interconnected, forming a person's trading mindset. If one does not have their own mindset, then all trades are essentially just luck; you might gain thirty or fifty points today, but sooner or later you will lose it back due to bad luck.
Therefore, I have never recommended that everyone follow others' trades. Because the logic of following others is that someone else is making money, and it has nothing to do with you. Once you get used to following others, it shows you don’t understand; you have no independent thoughts or ideas. Even if you can make some money by following others, it is merely luck; it does not belong to you. Once you leave the trader you are following, you cannot continue to be profitable. So if you want to make money in this circle, you must cultivate your own trading mindset.
The result of trading is very simple: there are only profits and losses. However, for everyone, moving from a loss to a profit is very difficult.
The first step in establishing a mindset is to cultivate your own philosophy and taste.
There are many messages in the market, constantly flowing. There are not less than eighty thousand KOLs in the circle, and everyone has their own opinions and analyses. At the same time, some look bullish while others are bearish. Some things that you may view as treasures, I might consider nonsense. Some people only believe in market analysis, while others only believe in candlesticks.
In short, no matter what you choose to believe, you must have your own philosophy and taste. There are no completely objective viewpoints in the world. What you believe is right, and you must stick to it. Then on this path, repeatedly learn, ponder, practice, and improve. Ultimately, you will form your own trading rules.
This is the fifth point of the mindset: discipline.
Although the reasoning sounds simple, very few people can actually achieve it. At least half of the people cannot.
Once you have your own rules, you need to strictly enforce them. However, most people cannot truly adhere to a single rule for the long term.
Why? Because there are too many temptations, and humanity is not sufficient. Market conditions are constantly changing, rising and falling, and they always affect your mindset and emotions. Sometimes, abandoning the rules may immediately allow you to earn more or lose less. At such times, many people will consider whether to abandon the rules. In fact, most people will choose immediate benefits. However, once we have the first violation of the rules, it becomes increasingly difficult to guarantee long-term adherence to those rules. In other words, your trading rules will become ineffective.
The laws of market trends are knowable, but the processes and details within them are unknowable. Long-term trends have inevitability, while short-term prices depend on market sentiment. Therefore, we must adhere to rules, which can also be called trading strategies. Because strategies have a higher win rate, trading is essentially a game of win rates.
If you can achieve this, then congratulations, you have already achieved the unity of knowledge and action.
This is the first point of the mindset.
When you have discipline and mindset, you will find that trading is actually very simple and not as complicated as you imagine. Just like cooking porridge, you have to be patient. Before the porridge is truly cooked, it will emit a fragrant aroma. You cannot eat half-cooked porridge just because you are hungry. Patience is key; calmly wait for the result. Good porridge requires slow cooking.