I know many people are obsessed with making money through trading in the crypto world, and the root cause is either having too little capital or simply having too great desires.
Those who just understand trading think this way: how free it is to live off trading! You can work wherever you go, you can work when you want to, and if you don’t want to, you don’t have to. You don’t have to do physical labor; you can earn money with just a lift of your hand, and earn a lot, achieving an elite income.
The reality of professional trading: anxiety inside, poor sleep, bad eating habits, decreased immunity, hair loss, diminished libido, and apart from trading profits, a significantly reduced interest in other things. You spend all day in solitude, missing many beautiful experiences in life.
Those who just enter the crypto world need to learn trading skills with just two points. You don’t even need to learn to analyze project fundamentals, technical analysis, or follow on-chain market makers or contract holdings. Often, the simplest path is the best.
That is, daring to buy when the market is down, daring to sell when it is up, and daring to stay out of the market when conditions are poor.
What is the essence of trading? If you have information advantage, it means cheating through trading to take money from others' pockets.
You do not have any information advantage; trading is a gamble for you. You must first acknowledge that the essence of trading is gambling, as you can never be sure whether the next K-line will rise or fall. What you can do is hold on when you're right and sell when you're wrong. This is the only behavior you can control.
Some people have the fanciful idea that ordinary people must lose when trading futures. So, if I go against them, can’t I make money? Just find someone to trade with, and if I trade against them, wouldn’t I be making money?
They have not glimpsed the truth of trading. Reacting against certain actions does not mean you will profit; even if you try to go against them, countless people in the market are doing the same. In the end, you will still lose everything. Some of the people you see making money in the market are merely those who temporarily ran against the crowd.
Going against the crowd means doing the opposite of certain consistent behaviors of the retail investors. Their consistent behaviors are to take a little profit and sell or hold onto a big loss. So the truth of going against the crowd is: cut losses short and let profits run.
As mentioned above, trading is gambling. So if you lose a bet, you must leave; if you win, you hold on and take a significant profit to cover the losses from your previous bets.
If you are really right, shouldn’t you be making money? And if you made money, it means you were right.
As for the quality of trading assets, you don’t need to select or research projects. Just look at the top ten rankings by market capitalization, trading volume, and popularity; those assets that overlap in all three attributes for a long time are good assets, all chosen by the market, and you don’t need to make the selection.
Daring to buy when the market is down means buying these assets. Buy at low points, and don’t chase when the price has already risen a lot. You can also buy when you first notice signs of a big rise; it's just a matter of being slightly left or right. The left side has a low win rate but a high cost advantage, while the right side has a high win rate but a low cost advantage. My conclusion is that in a bull market, you can lean left, but in a bear market, you must lean right.
The reason for not daring to buy when the market is down is due to market fear or when the market is in a bearish phase. From my observations, I’ve concluded there are only two reasons: one is being too aggressive and running out of bullets, and the other is lacking fundamental understanding of market rules and assets, which leads to not daring to buy out of fear of losing money when prices drop too much.
Daring to sell when the market is rising means you must have a set of selling discipline and be steadfast in executing it. Many people fantasize about how wonderful it would be beforehand but fail to execute afterward. The highest point of a rise is just for you to see, not your money. There’s no such thing as 'selling too early'; if you can 'sell too early', then it’s not money in your trading system, and you won’t make money. Wealth is not built through a single trade but through multiple accumulations; without small steps, you cannot reach a thousand miles. There is no perfect trade, only profitable trades – as long as you make money, that’s enough.
When the market is not good, you should stay out of the market. For example, if your strategy has been consistently losing money recently, and you’ve taken a big loss, it’s time to take a break. Real experts take a break even after making a big profit because the market conditions may soon not align with their strategy, and what follows may consume the wealth you previously earned. James Wynn earned a lot but didn’t stop, and even after huge losses, he didn’t quit. He could make so much money because his strategy and skill set are definitely fine; it’s just that the market no longer favors him. He didn’t stay out of the market to hedge against it, and the market consumed him.
What is said to be going with the trend means that you find your strategy aligns with the market's trend, allowing you to profit from it, not that you have seen through the market’s trend and are changing your strategy at any time to follow the market.
Staying out of the market preserves your emotional strength and keeps your bullets ready. This way, when the next opportunity arises, you will have the bullets to invest.
The dollar-cost averaging strategy is one that keeps you ready at all times, so you don't need to feel anxious. If the market drops and you want to add a little, go ahead; if you don’t want to, then don’t. You are always earning, whether it's through coins or cash, or both simultaneously.
Regarding assets, there’s really not much to say. We need to have a very large macro perspective to see problems. No matter how strong a ruler is, can he change the trend of crypto? It is Bitcoin that enables the ruler, not the ruler that enables Bitcoin. It is the trend of crypto that makes the financial market develop more perfectly, gradually consuming the inefficient financial market. In the face of this trend, the ruler is just a speck of dust. Regardless of what he calls for or what strategies he proposes, there is no need to panic. There may be temporary impacts, but it only causes slight fluctuations in your account. If doing small cycles, we also need to have a small macro perspective. For those assets already chosen by the market, we don’t need to study fundamentals or news; reasonable allocation won’t cause big issues. For instance, you can buy 1-5% of your assets. No matter how they perform, they won’t harm your foundation. Or you can simply choose not to buy, which isn’t a big problem. If the assets you bought make you too anxious and you’re looking for news every day, you might have purchased too much. Wealth requires a light touch; it often slips through your fingers when held too tightly.