I am an ordinary person born in 1992, now 33 years old. Through struggles in the trading market, I have accumulated over 20 million in net assets. Looking back on the journey of these years, it has been full of ups and downs, and I have summarized 11 bloody experiences. Today, I would like to share my experiences and insights in the form of a story.
I still remember when I first entered the trading market, like many beginners, I was full of passion and ambition, believing I could easily make a fortune. But reality hit me hard, and I faced continuous losses, watching my account balance shrink. During that time, anxiety and frustration followed me closely.
But I wasn't defeated. Through continuous exploration, I found a seemingly 'dumb' but very effective trading method.
Bloody Experience One: The Trap of Bottom Fishing During a Plunge
In the market, many people have the idea of bottom fishing during a plunge, and I am no exception. At first, when I saw prices drop by 50%, I was overjoyed, thinking I had caught a big bottom, and decisively entered the market. But who would have thought that the market is like a bottomless black hole, 'there's a basement below the floor'. Prices kept plummeting, and my assets were halved again and again. That experience made me understand that true opportunities often lie in times of neglect, not amidst chaotic panic selling.
Bloody Experience Two: The Importance of Capital Management
At one point, I was completely focused on technical analysis, studying various candlestick patterns, but I overlooked the importance of capital management. Once, I was overly confident and my position size exceeded 20%. As a result, a black swan event suddenly struck, instantly wiping out my account. It was only after that that I realized that position control is far more important than technical analysis. Only by learning to survive in the market can one qualify to talk about profits.
Bloody Experience Three: The Conspiracy of Afternoon Surges
I remember once, after 3 PM Beijing time, the market suddenly surged. I watched the constantly rising prices, feeling incredibly excited, and without hesitation chased the high. However, this became the beginning of my nightmare. As time went on, prices quickly retreated, and I found myself stuck at the peak. Later, I learned that this sudden afternoon surge is often a trap set by Western markets to target Asian retail investors, leading countless people to lose everything in such market conditions.
Bloody Experience Four: Overcoming Emotional Disturbances
In the trading market, emotions are our greatest enemies. Once, the FOMO (Fear of Missing Out) sentiment spread wildly in the market, and everyone was chasing after prices; I was swept up in this emotion, lost my rationality, and followed the crowd blindly, resulting in heavy losses. Another time, when the market was full of wailing and everyone was shouting 'it's over', I remained calm, analyzed carefully, and found a rare opportunity. I decisively entered the market and ultimately achieved good profits. Since then, I have learned to maintain a clear mind during extreme market emotions.
Bloody Experience Five: Seizing the Trend Timing
I once missed a great trading opportunity. At that time, the market was still at an emotional low point, but I did not keenly perceive the change in trend. By the time the news headlines were widely reporting the arrival of a bull market, I belatedly entered the market, only to find that the trend was already nearing its end. Not only did I not make a profit, but I also lost a considerable amount. Since then, I have understood that a true trader must lay the groundwork in advance when market emotions are low, rather than wait for everyone to see the trend and then act.
Bloody Experience Six: Distinguishing the Truth of the Decline
Once, I saw a bearish candlestick and thought it was a good buying opportunity, so I rushed in without careful analysis. Unexpectedly, this was just the beginning of the decline, and prices continued to drop, once again damaging my account. Later, I learned that not all declines are opportunities; some are just the prologue to a drop. A true buying signal requires a comprehensive assessment of volume, support levels, on-chain data, and other factors.
Bloody Experience Seven: The Risks of Counter-Trend Trading
During extreme market panic or greed, I have also tried to trade against the trend. Once, when the market was in panic and prices were plummeting, I thought it was an opportunity to go against the trend and buy. Fortunately, this trade brought me decent profits. However, such good luck did not last long, as I faced a devastating loss in another counter-trend trade. Most of the time, trading against the trend is like 'looking for shit', with enormous risks.
Bloody Experience Eight: The Explosion After Sideways
For a period, BTC's volatility was compressed to the extreme, and the market was stuck in a prolonged sideways state. Watching the calm market made me extremely anxious, and I even doubted whether the market had lost its vitality. Just when I was about to give up, a big trend suddenly arrived, and prices soared. Unfortunately, I was washed out of the market during the sideways period and missed this rare opportunity. This made me realize that the longer the sideways market lasts, the more violent the breakout may be, but the key is to hold firm during the sideways period.
Bloody Experience Nine: The Trap of High-Level Consolidation
Once, after prices consolidated at a high level for a while, a sudden surge occurred. I was overwhelmed by the situation and bought in without careful thought. As a result, this was just a tactic by the manipulators to push the price up for unloading; shortly after buying in, prices began to plummet, and I suffered another heavy blow. Since then, whenever I encounter a sudden spike after a period of high-level consolidation, I remain vigilant and no longer chase the high.
Bloody Experience Ten: Paying Attention to Capital Movements
Once, I relied solely on candlestick patterns to determine trading signals, but I repeatedly made mistakes. One time, I saw a doji and thought it was a signal for a trend change, so I rushed to trade. But the result was contrary to my expectations, and I suffered another loss. Later, I realized that simply looking at candlestick patterns is far from enough; it is crucial to pay attention to on-chain data, understand whether whales are accumulating or selling off, and whether the net inflow of exchanges is increasing or decreasing. This information is key to judging the market direction.
Bloody Experience Eleven: The Significance of Reviewing Trades
In the past, I rarely took the time to review each trade seriously and kept repeating the same mistakes. It wasn't until I suffered significant losses from a basic error that I reflected on my actions and began to review diligently. After each trade, I would ask myself: Was this operation driven by emotion or strategy? Did it conform to my trading plan? Through continuous review, I gradually corrected my mistakes and improved my trading skills.
In the trading market, the worst thing you can do is to overestimate your understanding and underestimate the market's cruelty. Behind every wealth myth lies countless stories of liquidation. In this market, those who survive to the end are not the smartest, but the most cautious. I hope that my bloody experiences can provide some inspiration and help everyone avoid unnecessary detours in their trading journey.
