Yesterday, a fan from Hunan asked me a question: 'I have been losing continuously, am I not suited for trading?'
This sentence makes me feel quite uncomfortable because I also went through a stage of self-doubt after continuous losses in my early years, and I know very well what it feels like to live in negative emotions daily, with self-confidence being gradually eroded.
If you were to say this to others, you might lecture this friend with a bunch of grand principles: like not trading against the trend, doing a good job on stop losses, avoiding guessing tops and bottoms, saying that it’s always darkest before dawn, and if you hold on, you will win...
It seems that as long as the root of the problem is shifted to a lack of technical skills, a psychological illusion can be created: 'the market is too tricky, and the responsibility for losses is not mine'.
But the fact is, after a newcomer enters the market, their biggest 'asset' is not the funds in their account, but time.
The phase of loss is a necessary path for every trader, and you could say that once you start your first trade, it's like starting a 'survival countdown'.
If you haven't figured out the tricks and learned the ropes before your funds run out, then the difficulty of turning losses into profits will only increase.
Why is that? Because once we face continuous setbacks, negative emotional pressure accumulates in our minds, and the shackles of pessimistic thoughts interfere with our judgment, making our chances of future success decrease.
The tuition in terms of money is negligible; what matters is that the sense of self-identity takes a huge hit, becoming uncontrollable and irretrievable. Once you allow it to erode, it will be difficult to regain that peaceful state of mind, even if you later spend ten or twenty thousand.
Once you fall into a stage of 'self-doubt' in life, it becomes difficult to make positive judgments and changes. You might think about those friends around us who have lost their 'fighting spirit', walking towards numbness in an environment of entertainment until death.
For these friends, what defeats them is not the market, nor life, but themselves.
Let me give you an example..
You have 100,000 U in assets, and you spent 70,000 U to buy a mainstream coin. The next day, this coin dropped by 1%, and you lost 700 U. You didn't care and thought it would rise back sooner or later. On the third day, it dropped again by 3%, and you lost nearly 2100 U, still fearless, firmly believing it would rebound eventually. On the fourth day, it rose by 2%, and you recovered over 1400 U of your capital. You smiled slightly, feeling that everything was under control.
On the fifth day, it suddenly hit the daily limit down, and you lost nearly 7000 U. You felt a bit uneasy, starting to fantasize that it would hit the limit up on the next trading day. On the sixth day, it rose by 4%, and you breathed a sigh of relief, thinking that trading coins still has rules to follow. On the seventh day, it rose by 1%, and you began to feel hopeful. On the eighth day, it rose again by 1%. Although it was a slow rise, at least it was moving towards breaking even, and you were content.
On the ninth day, it suddenly dropped by 8%, and at one point it hit the daily limit down, you began to panic, doubting if you had chosen the wrong coin. On the tenth day, it dropped another 4%, and you couldn't help but get angry. On the eleventh day, it neither dropped nor rebounded, closing with a doji star. You saw someone online saying this was a bottom doji star, a signal for a rebound, so you firmly believed that the coin in your hand would rebound soon.
But... in the following week, it not only didn't rebound but instead consolidated sideways. You went online to learn about crypto knowledge, and with your own understanding, you felt that this consolidation was the legendary accumulation by the main force! You continued to hold... A month later, your coin not only didn't rise but dropped nearly 8 points. You began to feel numb, thinking that if it could just break even, you would withdraw your money and never touch the crypto world again...
But things didn't go as planned; the coin you bought continued to drop. At this point, you finally saw a new piece of knowledge—stop loss! You felt heartbroken, struggling internally, not knowing whether to cut your losses or continue holding... Just then, a good friend told you that there’s a popular new coin that has already hit two limit-ups and looks particularly good, and he talked to you about his strategy for chasing rising stocks! You believed it! You really believed it!
So you sold the first coin you bought when you entered the crypto world, and you made a promise with it: once you earn two limit-ups in the new coin, you would come back to redeem it, and you would stay with it, never parting until you break even!
So do you know where the root of losses in the crypto world lies? Stop loss and take profit are the most important in the crypto world. The crypto world is not short of opportunities; what it lacks is execution. Following the correct strategy will allow you to go further in the crypto world.
Trading coins means repeating simple things, consistently using one method over a long time until you master it. Trading coins can be like other industries; practice makes perfect, and you can make every decision without overthinking it.
This year marks my seventeenth year of trading coins. I entered the market with 10,000, and now I support my family through trading coins! I can say that I've used 80% of the methods and techniques in the market. If you want to make trading coins your second profession to support your family, sometimes listening and observing more can help you discover things outside your knowledge, at least saving you five years of detours!
Follow me @加密大师兄888 to catch the trend and get rich together! Bull and bear together.
