Will Bitcoin test 120,000 next Monday? It's highly likely, but that doesn't mean a new round of increases will begin. Don't blindly chase longs, and don't rush to short; the end of the tug-of-war between bulls and bears is when you and I can reap the benefits.

First, let’s talk about the most basic principle that should be followed in the financial industry: preserve your capital! It's a simple logic that many people do not understand or overlook. The vast majority of people's attention is on how much profit they can make or how much they can stop losses, but very few discuss the topic of preserving capital, which is the most important thing.

I divide my trading into two phases: the first phase is the capital recovery phase. No matter how much I earn from trading, that is not my profit; that is my recovered capital. Once I double my earnings, I transfer the capital. The second phase is to play with profits, and the mindset is completely different. There is no longer the concept of capital; I can act freely. As long as this capital has not been lost completely, it is the trading cycle for this round. I can keep rolling over the capital, or I can withdraw some profits, but in any case, I cannot add extra funds.

When doing short-term or even intraday trading, you must assess the short-term trend, relying on technical indicators to trade. Find technical indicator points where your win rate is very high and repeat the operation. For medium to long-term trading, technical indicators are just the basis for your entry and exit points; analyzing the trend is the key. I once executed a strategy that took more than a month to complete profitably; the process was indeed torturous, but the result proved that my trading strategy was sound; it was just a matter of time.

When trading, you must have your own trading system; a trading system means you need to have your own trading style. The deeper your understanding of the trading products and the more accurate your judgment of trends, combined with a good trading strategy, the higher the probability of making a profit. Just keep repeating this.

The path to simplicity is profound. Many people in the trading industry lose everything, while others defy the odds and achieve financial freedom. Both types understand the underlying logic of trading; it’s just a matter of different cognition and different trading systems, and of course, there is a component of luck.

I personally advocate for large capital in spot trading and small capital in contracts. Why give you 100 times leverage? The purpose is to provide you with the possibility of making a large return on a small investment. If you don’t need it, there’s no need to engage in contracts. $BTC $ETH $SOL