Below is a summary of the top ten realms in the crypto space, from entry-level to maturity and transcendence!
The first realm is where newcomers first enter the crypto world, filled with ambition and a keen interest in financial investment, hoping to achieve 'money-making money' in the crypto space. These cryptocurrency friends usually rush into the market during a bull run.
In the second realm, novices achieve initial success during a bull market, making a little money, and become obsessed with daily buying and selling, firmly believing in the words of analysts. They diligently follow the analyses of prominent figures every day.
In the third realm, novices realize that analysts' words are not always trustworthy; they can be accurate at times but also inaccurate. More importantly, novices discover that making money in the crypto world is not as simple as they initially thought. At this point, they start seeking various materials to learn how to analyze the fundamentals of different cryptocurrencies, what is known as value investing. However, they often find that while the fundamental data looks good, the price not only fails to rise but actually falls! They feel that value investing is a sham.
The fourth realm marks the transition from novice to new retail investors. They begin to diligently study various technical indicators, learning to trade according to these indicators. Sometimes they make small profits, but more often, they incur significant losses. Their trading strategies are chaotic, alternating between short and long-term trades. They understand more about the indicators, but their capital continues to dwindle! At this stage, retail investors either become completely disillusioned with the indicators or start to despair about the stock market.
The fifth realm represents the stage where new retail investors become seasoned ones. Those in this realm have developed their own understanding of the crypto space and can eloquently discuss how to use various technical indicators. However, friends in this realm often fall into a state of confusion. Whether they trade based on indicators or buy according to the fundamentals of specific cryptocurrencies, they consistently incur more losses than profits. No matter what they do, it seems that the market is always against them. Many people transition slowly from the first realm into the fifth realm and then remain stuck at this stage, feeling that all technical indicators and fundamentals are fraudulent. Especially those technical indicators, if ignored and random purchases are made, surprisingly yield a higher success rate than trading based on technical indicators. They then believe that all technical indicators are essentially useless and that trading is merely gambling. With good luck, they profit; with bad luck, they lose! They then let themselves go, stop learning, and trade based on intuition, gradually falling back into the old habit of chasing gains and cutting losses.
Friends in the sixth realm are considered experts. They have years of experience in cryptocurrency and have gradually developed their own trading model through continuous practice. Although they still incur losses, they have learned to control their mindset, viewing losses as part of trading and approaching it with an even temperament. During trading, they have more gains than losses. Those who can enter the sixth realm are relatively few; many new friends often get lost in the fifth realm and stop progressing.
Friends in the seventh realm no longer look at any so-called technical indicators. They simply check the fundamental conditions of each cryptocurrency, understand what the cryptocurrency is for, and adopt a trend-based trading approach. When the trend is upward, they buy and hold; when the trend turns bad, they exit completely and wait for the next trading opportunity. Such friends have already explored their own 'Dao'!
Friends in the eighth realm have their own complete and unique trading model. After the market closes, regardless of what others say, they only believe in themselves. Each day, they simply observe the trends of their holdings; as long as the trend line is not broken, they remain unfazed by the price fluctuations. Their trading model is becoming increasingly mature and stable.
Friends in the ninth realm are like what is said in martial arts novels: 'in hand there is stock, in heart there is none.' They are fully aware of the fluctuations in the entire crypto space and can trade freely.
The cryptocurrency friends of the tenth realm no longer obsess over the crypto world; instead, they treat it as an investment venue where they can achieve fixed profits every year. Those in this realm have long reached the stage of financial freedom and have a deep understanding of the crypto space. They have realized that the crypto world is essentially the philosophy of life! A trader who can reach this realm is extremely rare, perhaps one in ten thousand.
What realm are you in???