I know many people are obsessed with making money from trading in the crypto space. The root cause is either having too little capital or simply having too much desire.
Those who have just started to understand trading often think: how free it is to live off trading! You can do it anywhere you go, you can do it if you want to, and you don’t have to if you don’t want to. You don’t need to exert physical labor; you can make money effortlessly and earn a super elite income.
The reality of being a professional trader: anxiety, poor sleep, poor eating, decreased resistance, hair loss, reduced libido, and a greatly diminished interest in anything other than trading profits. Spending all day in solitude can lead to missing out on many beautiful experiences in life.
For those just entering the crypto space, learning trading skills requires only two things. You don't even need to learn how to analyze project fundamentals, technical analysis, or the movements of on-chain whales. You really don't need to learn any of that; the principles are often very simple.
The simplest method is to dare to buy when prices are falling, dare to sell when prices are rising, and dare to stay out of the market when conditions are poor.
What is the essence of trading? If you have an informational advantage, you can cheat through trading and take money from others' pockets.
You have no informational advantage; trading is just gambling for you. You must first acknowledge that the essence of trading is gambling because you can never determine whether the next candlestick will be up or down. 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.
Someone had a whimsical idea: ordinary people always lose when trading contracts, right? So if I do the opposite of them, won't I make money? Just find someone to trade with, and I take the opposite position; wouldn't that mean I'm making money?
They have not grasped the truth of trading. Doing the opposite does not mean simply acting contrary to someone's actions. Even if you try to do the opposite, countless others in the market are doing the same, and you will ultimately lose everything. Some of the people you see making money in the market are just those who temporarily ran out by doing the opposite.
Doing the opposite means behaving in a way that is inconsistent with the actions of the retail investors. Their consistent behavior is to sell after making a small profit and to hold on through significant losses. The truth about doing the opposite is: cut losses short and let profits run.
As mentioned before, trading is gambling. If you lose, you should leave. If you win, you should hold on and enjoy substantial profits to cover the losses from your gambling.
If you were truly right, shouldn’t that mean you’re making money? And if you are making money, it indicates that you were right.
Regarding the quality of trading assets, you don’t need to choose or research projects. Just look at the top ten rankings by market cap, trading volume, and popularity. The assets that consistently appear across these three attributes are good assets, chosen by the market, and you don’t need to pick them yourself.
Daring to buy during a downturn means buying these assets at lower prices. Don't chase after them when they've already risen significantly. You can also buy as soon as you sense a potential rise; it just varies slightly between left-side and right-side trading. Left-side trading has a lower win rate but a higher cost advantage, while right-side trading has a higher win rate but a lower 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 prices are falling is due to the market's fear during a downturn or during a bear market phase. I've observed this and drawn two conclusions: one is that the effort is too much, and the bullets are gone; the other is that without a fundamental understanding of market laws and the underlying assets, one fears losing money when prices drop too much.
Daring to sell during a significant rise means you must have a set of selling discipline and be unwavering in your execution. Many people think about how wonderful it will be beforehand but fail to execute afterward. The highest point of a rise is just for you to see; it’s not your money. There's no such thing as 'selling too high'—if you could do that, it wouldn’t be your trading system's money, and you wouldn't be able to make money. Wealth is not built from one trade but from many accumulations; without taking small steps, you cannot reach a thousand miles. There are no perfect trades; there are only profitable trades, and it's enough to make a profit.
When market conditions are poor, you should stay out of the market. For example, if your strategy has clearly been losing money recently, and you've taken a significant loss, it's best to take a break. True experts will take a break even after making significant profits because market conditions may soon not align with their strategy, and they might soon lose the wealth they've previously gained. James Wynn made a lot of money but didn’t stop, leading to significant losses. He must have had great strategies and technical skills; it’s just that the market no longer favored him. Without a position to hedge against the market, the market consumed him.
What is called going with the trend means that you discover your strategy just happens to align with the market's trend; you follow the market trend to make money. It does not mean you see through the market's trend and constantly change your strategy to follow it.
Staying out of the market preserves your trading emotional strength and reserves your bullets. This way, when the next opportunity arises, you'll have the bullets to take action.
A dollar-cost averaging strategy is one that gives you bullets all the time. You don't need to feel anxious; if prices fall and you want to add a little, then add a little. If you don’t want to add, then don’t. You are always earning—either earning coins, making money, or both.
As for the assets, there's really not much to say. We should adopt a broad macro perspective to view issues. No matter how capable someone is, can they change the course of crypto? Bitcoin creates the capable ones, not the other way around. It's the trend of crypto that makes financial markets develop more perfectly, gradually consuming inefficient financial markets. In the face of this trend, even the capable ones are just a speck of dust. Whatever they shout or whatever strategies they propose should not cause panic; the temporary impact is there, but it only slightly increases the volatility of your account.
If you're trading on a small time frame, we should also maintain a small macro perspective. For those assets chosen by the market, we don't need to study the fundamentals or news; reasonable allocation isn’t a big problem. For instance, buying 1-5% of your assets is sufficient. No matter how they perform, they won’t hurt your foundation. Alternatively, not buying at all is also fine. If the assets you bought make you overly anxious, and you’re constantly looking for news, you’re probably just over-invested.
Wealth that requires too much effort is like sand; you often can't hold onto it.
