After reading this article, your entire perspective on trading will change forever!
When I first entered the trading world, I thought it was simple—buy low, sell high, make money! Quite simple, right? But as I delved deeper, I discovered shocking facts that no one tells beginners!
1. Market makers control the game!
Have you noticed that prices touch stop-loss points before reversing? This is no coincidence! Big players manipulate liquidity to trap retail traders.
2. Psychology is more important than strategy!
The difference between winning and losing is not just technical analysis—it's your mindset! Greed, fear, and FOMO destroy accounts more than bad strategies.
3. Retail traders chase, smart traders predict!
The largest profits come from planning ahead—not reacting to price changes like everyone else.
4. Traps for quick profits!
Many people enter the trading market hoping to get rich overnight, but true success comes from consistency, discipline, and patience.
The secret to beating the market:
a: Think like a whale—identify liquidity areas and trade where smart money operates.
b: Master risk management—never take risks beyond what you can afford to lose. One trade should not wipe out your account!
c: Control your emotions—fear and greed are your greatest enemies. Calm traders are profitable traders.
d: Adapt and develop—markets are changing. Methods that worked yesterday may not be effective today. Keep your strategies updated and refined.
Most traders fail because they play the wrong game!
If you go with the flow, you will be slaughtered. If you have different ideas, you will win!
The hidden game of trading is to master oneself before mastering the market!
First trade: open 60% position (100x), approximately $30,000 in position, go long on Ethereum! Just that night, there was sudden news from a US official indicating that the probability of the SEC approving the ETF had risen to 75%. Following this, Ethereum surged nearly 20% in a single day; I, coincidentally, captured almost the entire wave, with funds increasing from $500 to nearly $6,000.
The second trade, I used $6,000 to open a 50% position (100x), continuing to chase the rise, eat up the profits, and stay happy! The next day, I gained nearly 1.5% (about $4,500), and my capital reached nearly $11,000.
The third trade, I made a small bet on a cryptocurrency at the right time in its upward channel, making a small profit! I opened a 20% contract (20x) with $11,000, which means nearly $70,000 in position, earning close to $5,000; through these three trades, I turned $500 into $15,000.
Of course, this method is not suitable for most people. The madman just happened to be in a magnificent market, and fortunately, the direction was right. Then, they profited greatly. The highest realm of trading cryptocurrencies is the ability to control one's own greed. It sounds simple, but how many can actually do it? Most of the time, holding on can lead to steady profits, but many people bring the stock market's chasing highs and cutting losses approach into trading and end up getting harvested.
Wealth cognition: how to understand why wealth flows to those who are not short of money.
Information is always the most important wealth; it can determine the fate of a person or even a country. Initial capital is certainly important, but the difference between the rich and the poor is largely information.
In the online world, there is a famous saying: 'Money flows to those who are not short of money, love flows to those who are not short of love.' Today, let's first discuss the 'first half': why does wealth flow to those who are not short of money?
In fact, 'wealth flows to those who are not short of money.' The core essence behind this is that those who are not short of money can invest more capital into the continuous expansion of productivity, creating greater value through the enhancement of productivity to exchange for more material returns.
This investment in expanding productivity can include many methods, such as:
Path one: use money to buy others' services to free up your time, and invest that time into a positive cycle of continuous self-value increase.
Path two: use money to buy technology or tools to increase your value creation within a fixed unit of time, thus gaining more value returns.
Path three: use money to buy appreciating assets to increase your income sources, continually accumulating more 'passive income.'
Path four: use money to buy scarce high-quality information to increase your informational edge, enabling you to complete layouts early and seize opportunities; or to find differentiated competitive advantages more precisely, thus enhancing your core competitiveness.
In short, 'not short of money' represents that a person has more competitive chips, more autonomy in time allocation, and more ample resource allocation space.
This is also a hurdle that people in a 'poverty-induced busy' state find hard to overcome. But it's not unsolvable; we'll discuss it later.
In the book (The Essence of Poverty: How to Escape the Poverty Trap), it mentions: 'The characteristics of poor people in finance include impatience (lack of foresight) and psychological sunk costs. Because their funds are limited, they are more willing to spend money on consumption rather than investment.'
In fact, the state of being poor and busy exists not only among individuals but also in many situations of 'rushing for survival' in enterprise management.
How to break the deadlock?
First, there must be a strong desire.
Whether individuals or enterprises, the first step to breaking free from a state of poverty-induced busyness is to deeply desire change. The stronger this desire to break through and change, the higher the probability of actual success. The deepest logic here is that true change must come from continuous and actual actions, and long-term sustained actions require a powerful motivational system to support them.
Thus, there are two core underlying logics that can lead to success:
Desire > Karma > Ability.
Wanting ≠ getting; there is still a 'doing' in between.
Too many people fail not because of 'unimaginable' outcomes, but mainly because they stop at 'unable to persist in doing.' More accurately, they fail at 'unable to persist long term.'
Secondly, have thoughts and principles.
The first step to breaking free from 'poverty-induced busy' is to start by analyzing what one currently 'has.'
Step two: think about the resources you have that you can autonomously allocate, and the directions and paths for continuous value increase.
Step three: choose the path that you can persistently act on for the long term, take action, and move forward.
Step four: in specific practical actions, reflect, correct, improve, and persist, gradually accumulating more types, more quantities, and higher quality resources to lay a foundation and expand boundaries for the next round of wealth acquisition models.
Let's explain it concretely.
For instance, a recent graduate entering the workforce can draw on all the 'knowledge,' 'skills,' and 'soft abilities' accumulated from their life experiences. When choosing the direction and path for self-value increase, it's best to base it on the overall development direction of their company and industry, finding a point of resonance. If the company is technology development-oriented, and they have a relevant background, they should get closer to the core business line; if they do not have a relevant background, they should move towards marketing positions.
The underlying logic here is to position one's value increase direction and career development path based on the 'smile curve.' The 'smile curve' theory applies equally to the strategic development direction of enterprises. Breaking free from 'poverty-induced busy' requires not only finding an action approach but also determining some key principles.
Why establish principles?
Because the process of determining action principles establishes a clear decision-making judgment standard for oneself. In the practical action process, when encountering matters that do not align with one's set principles, one should not get entangled or waste energy but make quick decisions, putting time and energy into truly valuable areas rather than wandering and hesitating.
For example, if you set a principle for yourself: 'Treasure time as life, keep up with the times,' then in daily life and work, you should carefully assess your time investment-return ratio. When encountering situations like 'someone draws you into gossip,' 'someone guides you to engage in office politics,' or 'someone PUA's you to contribute more,' your brain should promptly sound the alarm and decisively refuse at the first moment, allocating your time and energy to 'self-improvement' and 'keeping up with the times.'
For instance, in the process of enterprise management, if a principle is established: 'Concentrate quality resources to serve high-quality clients,' then after clarifying what constitutes 'quality resources' in the industry and what 'high-quality clients' are, finding and maintaining 'high-quality clients' should be an important principle for front-end marketing management, while 'allocating optimal resources' for delivering 'high-sticky,' 'high-repeat-purchase' 'high-quality clients' becomes a crucial principle for back-end service delivery management. When encountering business or clients that do not align with this operating principle, one must have the courage and confidence to appropriately refuse; this is a core concept for enterprises to escape the 'poverty-induced busy' state.
Finally, take action.
With strong willpower supporting it, after determining the action ideas and principles, one must focus and persist in one thing: 'Unity of knowledge and action.'
If cognitive differences are the greatest disparity between people, then on this basis, the gap in wealth, capability, and development space between individuals is widened by 'action.' As the saying goes, 'A little progress each day adds up to big results.' Even the smallest step, given time, will explode with unexpected energy at the critical point of 'qualitative change from quantitative change.' Just as mentioned in the earlier core logic of achieving success: wanting ≠ getting; there is still a 'doing' in between.
If you truly 'want,' then first make sure you can 'do.'
For ordinary people, their time and energy are the only resources they can autonomously allocate at the starting stage. How to use this unique, non-renewable resource to enhance their scarce value, and thus exchange their 'high value' for 'high returns,' is the only path for ordinary people without special backgrounds or initial capital to break the deadlock. Of course, this entire process also involves different methods and ways to enhance one's scarce value and different fields and models to exchange for 'high returns.' We'll address this in a separate article.
The same applies to enterprise management. Resources that can be called upon and integrated are always limited. If one wants to escape the 'poverty-induced busy' or 'micro-profit' state, one needs to choose a correct direction based on 'trends' and allocate all quality resources for a saturated attack, creating an effective breakthrough, then riding the wave to build a moat and business barriers, upgrading the quality of clients, business models, market scale, and quality to an entirely new dimension. Otherwise, long-term 'rushing around,' 'passively coping,' or 'firefighting' not only fails to accumulate higher-value business assets but also leads to missing many important opportunity windows. Slow steps become slower steps; even if one 'gets up early,' predicting trends and seeing directions, they will still end up 'arriving late' due to slow action, paying a heavy opportunity cost and getting trapped in a 'low-level operating cycle.'
In fact, wealth flows to those who are not short of money, and the core essence behind this is the high cost-effectiveness allocation of time and energy by a person or an institution. The less money one has, the more one invests time and energy in immediate survival. Those who are not short of money will invest time and energy in long-term sustainable development, moving towards a positive cycle of increasing value, development, and extraordinary returns.
Breaking the deadlock requires an entry point and starting point. Time is the most equitable resource. To change the state of 'the poorer, the busier; the busier, the poorer,' in the initial stage, one must exchange 'time' for 'self-value increase.' After accumulating a 'small fortune,' use this 'small fortune' to achieve a greater degree of 'self-value increase,' continuously cycling until one accumulates other wealth exchangeable assets beyond 'time,' such as initial capital, influence, connections, etc. Only then can one be said to have stepped onto a positive cycle.
Poverty does not merely mean a lack of money; it can make one lose the ability to tap into their potential.
The essence of poverty is not merely a lack of money; the lack of money is just a result, not the cause.
Overall, it's not about money; it's about the mindset and behavioral system.