1. Those who have never had their positions blown up will always be the leeks of the market
▍Blood loss lesson: Principal is the bottom line for survival
Awakening from a margin call: The despair of going from a profit of 100,000 to zero is more profound than any technical analysis. A 50% loss of 100,000 leaves 50,000, but it takes double the investment to get back the 50,000, while it only takes one leverage error to get back to zero.
Cruel data: 95% of those who have been liquidated have never experienced a complete bull-bear cycle, and 78% of retail investors died from the "impulse to cover their positions after the first major loss";
Iron Rule Warning：
✅ The principal is the lifeline, and 30% "escape funds" should be reserved at any time;
❌ Remember: the pleasure of making a profit 100 times is not as good as the devastation of losing money once.
2. The fatal weakness of leeks: trading controlled by emotions
▍Three major behaviors of retail investors seeking death
Hasty decision-making: Comparing prices for shoes for 3 days, but buying cryptocurrencies in 3 seconds based on a “big V’s words”;
Fee loss: Frequent trading will result in an annual loss of more than 140% of the principal (based on a 0.2% fee, 5 transactions per week, a loss of 146% per year);
Mentality collapses: The pain of losing 1,000 yuan is 10 times the happiness of earning 1,000 yuan, which leads to indecisiveness in cutting losses and inability to hold on to profits.
▍Trading disciplines that are essential for ruthless people
Three Questions Principle：
① How much loss can I bear for this order? (Set a 20% stop loss line)
② What is the profit target? (Profit stop in stages: sell 1/3 at 30%, sell another 1/3 at 50%)
③ How much profit must be withdrawn? (Withdraw 5,000 for every 10,000 earned, to avoid the illusion of digital wealth)The Iron Law of Positions：
✅ Build positions in batches: 30% for the first time, add another 30% after confirming the trend, and keep 40% to deal with black swans;
❌ Refuse to Go All in: Even if the opportunity is 100% certain, do not bet more than 50% of the principal.
3. Top players’ thinking: using anti-human strategies to change their fate
▍The cognitive transition from a small retailer to a big boss
Upgrading the target dimension: People with a capital of 10,000 yuan focus on the daily fluctuation of a few hundred yuan, while people who want to make 1 million yuan only look at the cyclical trend;
Time leverage: The way to make money in the cryptocurrency world is to “stay in business for three years and make a living for three years after opening.” In the 2024 bull market, the people who hold onto BTC will earn more than 90% of high-frequency traders.
Emotion management rules：
✅ Hold on to the trend after it is confirmed (e.g. ETH rises from 1200 to 2400 in 2023, and those who hold on will double their profits);
✅ During the sideways period, it is better to sleep with empty positions than to participate in the trendless market (historical data: the success rate of transactions during the sideways period is only 32%).
▍Market elimination mechanism: It is not those with poor skills that are eliminated, but those with a broken mentality
Case warning: When LUNA plummeted in 2022, technical analysis failed, but those who could strictly stop loss retained 40% of the principal, while those who collapsed directly lost all their capital;
The ultimate secret: Trading is an anti-human practice - when you can achieve “not being ecstatic about profits and not complaining about losses”, you have already beaten 99% of retail investors.
