Good evening, brothers. A few days ago, I spent several days in Shenzhen and met a different group of people every day. Every night, we drank, and the next morning was spent recovering. It has to be said that Shenzhen is a good place; the pace of life is fast but very inclusive. Staying in Shenzhen makes me want to make money. Compared to Xiamen, it really feels too comfortable, which can sap one's fighting spirit. After spending a few more days in Shenzhen, I found it a bit uncomfortable returning to Xiamen.
The people I've met in these few waves are basically all contract traders. Although they are in different industries, they share a common trading characteristic. I summarized the following points; see if you have them:
1. Too much gambling mentality.
They like to chase highs and sell lows. They chase in after a wave has already risen, betting that it will continue to go up, not realizing that this wave has already had its upswing. Most of the time, they end up buying at halfway up the hill or even at the top.
2. Position management is not done well.
Thinking that 30x, 20x, or even 10x leverage is not scary, they pull positions to over 60% each time they open a trade. A slight large-level rebound makes them BBQ.
3. Do not set stop losses and prefer to hold positions.
When the direction is wrong, they do not stop loss but hold on, especially when opening heavy positions and being unwilling to set stop losses. What to do? They open a hedge to lock it in, but later it becomes difficult to unwind, and in the end, they still get liquidated.
4. Likes to fantasize about market trends.
They always feel that the market cannot rise, or they fantasize that the coin price will drop. They place orders based on feelings, not looking at higher-level charts. If the 3-5 minute K-line retraces a little, they think it will drop.
5. Greed.
Many times, they have made profits but did not exit, they do not manage stop losses or break-even losses, always thinking that the market will continue, but suddenly a reversal occurs, and not only is the profit gone, but the principal is also trapped (profit turns to loss - liquidation).
After a round of observation, I found that they basically have no trading rules or discipline. The above five points are basically their common traits. They open positions too randomly; they open as soon as they feel it's right. However, overall, they are losing money, and many have previously lost several million, yet they are still losing. It really reflects that saying: the richer the person, the less they like to listen to others.
Perhaps their real businesses are too successful, allowing them to call the shots in traditional industries; some are even industry leaders. However, in the crypto space, they are novices. Novices have to pay tuition; change is painful, and not changing is even more painful. After all, real businesses earn RMB, while in crypto, contracts lose USDT, leading to a 7-fold loss. So, brothers, it's really important to develop good trading habits!
Through this offline guidance in Shenzhen, I also discovered that everything discussed online and offline is completely different. The above points are actually reminded during every live broadcast, but it seems to have no effect. This time, I taught what needed to be taught and spoke about what needed to be spoken. Whether it is useful, I don't know; they need to change their trading behavior for it to be effective.
This time, I also instilled faith in Bitcoin for them, as their spot trading losses are truly unbearable. Some altcoins have lost several times over and are now gone. Looking back now, only Bitcoin is truly reliable. Whether you make money or how much is secondary; the ability to withstand declines is primary. You wouldn’t dare to heavily invest in altcoins, but I am willing to take substantial positions in Bitcoin and BNB. I hope that in the next bear market, brothers can lay out positions in Bitcoin and BNB together, then just sit like pigs waiting to take off!