Liquidation: A Must-Learn Lesson for Traders
If you've faced liquidation this time, don't panic; don't dwell in pain. Think about whether it was a market issue or your own. I dare say, 90% of the time it's because you couldn't control your desires and impulses, which is a common problem among most 'gamblers' in the crypto space. It's essential to realize: it wasn't trading that ruined you; it was your gambler's mentality that led you down this trading path.
1. First, ask yourself: Are you really a trader, or just a gambler?
A trader is disciplined, has a plan, and is responsible for their actions; a gambler is emotional, betting everything on 'luck' with every rise and fall. Honestly, I was a gambler during my first few years in the crypto space. I would increase my positions without looking at the market, heavily gamble in one go—it's all gambling. I felt great when I was making money, but when I lost, I blamed the market, thinking it was unreasonable. The truth is, it wasn't the market that was wrong; I deserved the loss.
2. Gambling addiction is the biggest poison in trading
When you're addicted to gambling, you completely lose your rationality. You become greedy during a market surge and stubbornly hold on during a crash, always thinking about doubling your money. But the market never caters to gamblers. In reality, it's not that we can't admit our gambling habits; it's that most people are too proud to change. Brother, if you don't change this habit, no matter how much you earn, you'll eventually lose it all.
3. How to correctly become a true trader?
• Learn to control your emotions: Trading should never be driven by emotions. Don't let greed and fear lead you; make a plan and strictly execute it. Don't get overly excited when prices rise or confused when they fall; sticking to the plan is key.
• Test patience with small positions: Never go all in at a moment's notice. Those who truly understand trading will break down each trade into small pieces. A good trader doesn't gamble on probabilities; they manage risks.
• Learn to take profits and cut losses: One of the scariest aspects of human nature is lack of satisfaction. When making profits, you want more, and when losing, you're reluctant to cut losses, only realizing the mistake when facing liquidation. These issues can be avoided through strict profit-taking and loss-cutting rules.
• Regularly review trades: Smiling when you profit and blaming the market when you lose is a gambler's mindset. A true trader will review each operation afterward, identify their mistakes, and improve next time.
4. The only outcome for gamblers is: Zero