First, ask yourself: Are you a short-term speculator or a long-term holder? If you seek short-term profit, trading contracts, chasing hot trends, and blindly following others are common traps, but these methods carry high risks. Many people inadvertently get liquidated and become fodder for the market. If your goal is long-term holding, then mainstream coins (BTC, ETH) are relatively reliable choices, but this requires great patience and belief. Remember, 'The cryptocurrency world is not a casino; don't expect to make money by luck.' A clear goal is the first step to success:
2. Risk management is fundamental.
Losing money in the cryptocurrency world is the norm; the key lies in how to control risks. Stop-loss: you must set a stop-loss before every trade; don’t let emotions control you. If the price touches your stop-loss line, close the position decisively; don’t think that 'a little patience' will cause it to rebound. Position management: don’t put all your money on one trade; 'diversify your investments' and use small positions to gradually test the waters. As Ti Afiro often says, 'Money is an amplifier; losses occur faster than gains. Avoid high leverage: leverage trading can amplify profits, but it can also magnify losses. Especially for beginners, try to avoid using leverage, and first learn to be steady in spot trading.
3. Information acquisition is crucial.
There is a huge information gap in the cryptocurrency world, but most of the time, what you see are the success stories shared by KOLs. In reality, many of the information in echo chambers are traps. Focus on reliable information channels: pay more attention to official channels, on-chain data, and the views of independent analysts. Don't blindly trust the calls from big names in groups.
4. Keep learning and reviewing to enhance your understanding.
The cryptocurrency world changes every day, with new projects and new rules emerging endlessly. Regular reviews: after each trade, reflect on the gains and losses in your operations, accumulate experience, and adjust strategies. Continuous learning: whether it is technical analysis or fundamental analysis, learn more, ask more, and communicate more. As Ti Afiro and Luo Sheng emphasize, 'Knowledge and understanding are certainly important, but the key is desire and execution power.'
5. Mindset determines everything.
The cryptocurrency market fluctuates greatly; you may collapse mentally due to a loss. Stay calm: don't let fear or greed dictate your decisions. The market is always full of uncertainties; whether you can control your hands directly determines your survival. Don't pursue overnight wealth excessively: getting rich quickly is just an illusion; steady and solid is the hard truth. As everyone says: 'Learn not to lose money first before making money; staying alive gives you a chance to earn.'
Before entering the cryptocurrency world, you must clarify your goals, manage risks adequately, obtain reliable information, and maintain a good mindset.
The cryptocurrency world is definitely not a place where you can make guaranteed profits; it is a market full of opportunities and risks: as long as you can recognize the essence of the market, do not be confused by short-term fluctuations, and steadily follow your trading plan, you will ultimately be the one who survives and makes money in this game of 'wealth redistribution.'
Remember, 'The cryptocurrency world is not a casino; trading is not gambling.'
Surviving is more important than short-term profits. Keep going, and may you find your own path in the cryptocurrency world, no longer a victim of market harvesting, but a true trader who can stand tall! A special edition for you; every sentence deserves contemplation.
Pattern
Life is full of coincidences and opportunities. Often, your efforts do not meet opportunities, and they really mean nothing, let alone soaring to the sky. I don't mean to say don't work hard, but rather, don't be too hard on yourself.
The future is full of the unknown, with too many unpredictable events. Trading and life are not linear; they are full of surges and crashes. What is needed is to be prepared, just wait for the wind to come. When the opportunity arises, you can set sail; in adversity, just stay put and don’t think about unrealistic things.
1. Short-term traders.
We lack faith in trends; all we hear is the sound of steel bouncing, timidly and cautiously accumulating small amounts of money. But what of it? Short-term gains depend on time to accumulate profits, and daily losses must be controlled within a range because you can take a few days to earn it back.
2. Faith
Long-term trading requires faith, and many day traders also have faith. This understanding of the market and self-awareness build our confidence. Long-term trend trading relies on market conditions. If a big opportunity arises, you must seize it; otherwise, you will have to wait a long time for the next big opportunity. If you wait and are consumed by the market in the process, losing sufficient capital, then it becomes troublesome. Therefore, luck is also very important.
3. Execution Power
The same technical analysis leads to some people earning a fortune while others go bankrupt and are left with no way out. Why is this so? Since everyone understands that technical analysis is just a game of probabilities, why is there such a huge gap? This is due to the gap in execution power.
For many traders, whether they gain or lose, they are rigidly staring at technical analysis, with their computer screens filled with all kinds of charts. However, when it comes to actually entering the market, they often hesitate, and when exiting, they are slow. Ultimately, technical analysis, which is their only weapon, becomes ineffective. Greed and fear are mindset issues that every trader must face; our hearts influence our trading behavior.
Books advise people to be as calm as water, but how many can reach the realm of high monks? Traders who are not greedy and do not want to get rich are probably not good traders, and those who are not afraid of losses are also very few. How to solve this problem?
I once read a quote that provided a good answer: 'Trade when you are not so greedy and do not feel fearful.' Being able to analyze your own situation, execute firmly, and face it calmly, what is there to fear? The stop-loss points and conditions have already been clearly set, and the target price and conditions are also clear in your mind. The rest is just to wait for the market's final result. Patiently waiting for the result is such a good state; where is there still fear and greed? I hope everyone can maintain their rhythm and wait quietly for the flowers to bloom. Be cautious from beginning to end, and learn from the market.
The market is changing. Trading is not just about understanding; it requires sustained stable profits over a week, a month, a year, or several years. This is true understanding, indicating you are heading in the right direction, and practice proves it is feasible.
Don't pay too much attention to others' opinions because the vast majority are losers. The market is the best teacher; do your best, be consistent, overcome impulsive trading, and be cautious and respectful of the market. Discipline, cultivation, strategy, and technique are all indispensable in trading. Strategy and technique are the foundation, directly determining the profit and loss of each trade.
Discipline creates consistent statistical laws for profits and losses.
Cultivation is the key to ultimate success. Trading is not indispensable for life; the trading market is the best training ground, condensing life experience and showcasing human nature. Those who survive have more advantages, fewer disadvantages, and deeper insights than practitioners in other industries.
Their lives surpass the sum of most people's lives. The market is a microcosm of life; living by trading inevitably leads to an extraordinary life.
There are four key elements in trading: technical indicators, trading strategies, capital management, and trading discipline.
If we were to score the importance of these four elements, I believe technical indicators would score 20 points, trading strategies only 20 points, and capital management 15 points. Why do these three only add up to 55 points, while trading discipline takes up 45 points?
Imagine a person who thoroughly studies technical indicators, trading strategies, and capital management; if they lack trading discipline and ironclad execution, none of their trading strategies can be realized.
Trading discipline is not only a requirement for executing trades but also a skill summarized from real trading experiences. Strict adherence and execution are especially important for traders.
Correct trading discipline can help you profit easily; incorrect trading discipline will lead to heavy losses.
Therefore, trading must first have a good set of trading discipline, and secondly, strictly adhere to it. I have traded what you have traded, and I have traded what you have not. Ten thousand trades are all real experiences, each summarizing practical experience.
Original content is not easy. I am Muqing, and I only share valuable content for retail investors every day! There is a way to the soul, and there are skills to handle cryptocurrencies. The above content is my ten years of experience in the market, summarized and reflected upon. It seems simple, but achieving unity of knowledge and action is not easy. I hope to help many cryptocurrency enthusiasts avoid detours!
