The harsh truth of the cryptocurrency world: After learning a bunch of technical indicators, I still couldn't avoid liquidation. In 2021, I saw a trader who drew 20 candlestick charts daily, was well-versed in MACD and Fibonacci lines, but when ETH hit 4800 USDT, he couldn't bear to cut losses, dropping from 500,000 USDT to only 30,000. I later understood that the outcome of trading never lies in the indicators but in the cultivation of mindset — these three stages hold the key to turning losses into consistent profits.
First stage: The obsession in the maze of indicators, the more effort put in, the more losses incurred.
When I first entered the market, I crazily collected indicators: waiting for MACD golden crosses, waiting for divergences with KDJ overbought, even drawing the Gann square densely. Once when trading SOL contracts, I noticed a golden cross on the 5-day line but RSI was overbought, agonizing until 3 AM before placing an order, and the moment I opened the position it plummeted — those contradictory indicators became shackles of self-torture.
The mentality at this stage is a trap of 'greed for more and wanting perfection':
Seeing others make money with Bollinger Bands, I immediately abandoned MACD, switching systems three times in a week;
When losing trades, I always blamed 'the indicator parameters were wrong', changing the EMA from 12 to 20, then to 50, but never admitting it was my fault for not cutting losses;
During late night reviews, I slapped my thigh looking at the candlestick chart: 'If I had used the Chan theory, I would have escaped the top already,' yet the next day I still opened random trades in the sideways market.
Until one time when BTC fell below the 20-day line, I stubbornly held on to the 'bottom divergence' signal, watching my account drop from 20,000 USDT to 8,000 — only then did I suddenly realize that those revered indicators were just lagging numerical games, and I had long been turned into a puppet played by the market in my obsession with 'finding the perfect indicator.'
Second stage: The struggle within the myth of win rates, the more obsessed, the more confused.
Those who have survived the maze of indicators often fall into another dead end: madly pursuing high win rates. I once reviewed 500 trades over three months, adjusting the stop-loss from 5% to 3%, then to 1%, just to raise the win rate from 40% to 45%. What was the result? The average profit per trade dropped from 20% to 8%, the gains weren't enough to cover the losses.
The mentality at this stage is a dilemma of 'self-persuasion':
After three consecutive profitable trades, I thought I had 'understood the way,' heavily investing and ended up giving it all back;
When I lose, I pull out 'Wyckoff volume theory' to comfort myself that 'the main force is washing the盘', stubbornly holding on until liquidation and still insisting 'it's just bad luck';
Seeing others making money with low win rates and high risk-reward ratios, scoffing: "Isn't a win rate below 50% still called trading?"
In the 2022 bear market, I knew a 'theory master' who was typical: he could accurately sketch BTC's ABC waves, yet hesitated to enter the market during every rebound because 'the win rate wasn't high enough,' missing out on three doubling opportunities. Later I understood, traders at this stage seem to master the techniques but are actually bound by the obsession of 'having to be right', lacking the courage to 'accept losses.'
Third stage: Calmness after letting go of obsession, a 30% win rate can also lead to profits.
Epiphanies often occur in the most desperate moments. In 2023, I blew up five accounts in a row, deleted all indicators and left only the 20-day line, and suddenly it clicked:
Trading does not require predictions, only responses — go long when the price breaks above the 20-day line, go short when it breaks below, as simple as breathing;
What if the win rate is 30%? As long as each profit is three times the loss, after 100 trades, I can still earn 80 times;
Those 'simple indicators' that were once looked down upon, like MACD, are actually sufficient — the key is not how complex the indicators are, but whether you can decisively take profits when the red bars shorten.
The mentality at this stage is a relaxation of 'unity of knowledge and action':
Setting the stop-loss after opening a trade and then closing the software, even receiving a take-profit notification while running, I just smiled faintly;
Three consecutive losses? Calmly reviewing trades and staying out for a day, never rushing to 'make back the losses';
Seeing others chasing MEME coins to double their investments, feeling absolutely no waves in my heart — knowing that it is outside my circle of competence, not earning does not cause anxiety.
Now my trading system is so simple it's laughable: the 20-day line sets the direction, MACD checks the strength, each stop-loss is 5%, take-profit is 15%. The win rate is only 35%, but the account curve climbs like stairs — because I finally understand that the essence of trading is not to conquer the market but to master my own greed and fear.
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