Summary of 8 Years of Trading Experience: The 4 Stages of Crypto Traders, Which Level Are You In?
The crypto world is a battlefield without day or night; some become rich overnight, while others lose everything in an instant. But what truly determines your fate is not the rise and fall of the market, but the stage you are in.
I went from 2 million to 60 million, experiencing all cycles and gradually understanding these 4 key stages:
Stage 1: Novice Period - Emotion-Driven, Frequently Chasing and Cutting Losses
When first entering the market, every fluctuation keeps people on edge. Prices drop after buying and rise after selling; sudden crashes in the early morning lead to sleepless nights, torn between “cutting losses” or “holding on,” often falling before dawn.
Reality: 90% of losses come from emotional control issues rather than technical errors.
Stage 2: Intermediate Period - Beginning to Understand Trends, Cautiously Making Moves
After several lessons, one starts to pay attention to larger trends, such as macro policies and halving cycles. Gradually understanding that real profit comes not from frequent trading but from accurately hitting key points.
Breakthrough Point: Transitioning from “chasing and cutting losses” to “waiting and sniping” is the first step towards profitability.
Stage 3: Advanced Period - System is King, Calm and Composed
Traders at this stage have built their own trading models. Once stop-loss and take-profit levels are set, they can put down their phones and sleep peacefully, no longer being led by market movements.
Essence: Trading is not about the time spent staring at the screen, but about the system and execution.
Stage 4: Despair Period - Blindly Increasing Positions, Emotional Breakdown
Heavy investment in altcoins, chasing after skyrocketing prices, high leverage leading to liquidation… From fantasizing about a comeback to repeatedly getting harvested, falling into insomnia, anxiety, and questioning life.
Warning: If you are in this stage, please stop in time. Don’t let “recouping losses” become a trap; correcting your direction is more important than blindly persisting.
Conclusion: Recognizing your position is the first step to breaking out of confusion. Don’t trust luck; real comebacks rely on cognitive upgrades and long-termism.
