After being in the crypto world for so long, I realized a truth: mentality determines everything!
Don't talk to gamblers about value investing, it's useless! Instead, encourage them to bet boldly, let them see more coffins, so that they can have awe of the market!
Why haven't many people made money in the crypto world for so long? Because they can't resist the temptation of K-lines and the temptation of contracts! The more K-lines jump, the more ruthlessly the sickle is wielded! Have you ever seen an old brother who supplemented the margin at three in the morning? The grass on the grave has been replaced three times.
The duel between top players is not about technology, but about mentality! If you want to make money in the crypto world, don't trust KOLs! Those who shout "Charge" and "All in" are either stupid or bad! They create anxiety, pour in chicken soup, and only mess up your mentality!
The coin market is a competition of life! What's the point of talking about making money when people are dead? Survival is the first priority! Just like the old people in the village, the smart and capable ones often don't live long, but the carefree ones live to be a hundred years old! Isn't it magical?
True investors value long-term value, not short-term benefits.
Things that you want everything can only exist in dreams!
Life anxiety is normal, unhappiness is common, and owing is commonplace!
When you take it lightly, you have nothing to fear!
After struggling in the crypto world for so many years, I have experienced the despair of liquidation and tasted the joy of doubling. Today, I will share the experience of losing money in real trading without reservation.
Share it with everyone, hoping to help one is one! It is recommended to like and collect it first to avoid not being able to find it in the future~
One, choose the right trading time and avoid the "minefield" during the day
The crypto world during the day is like a "war of information"! Fake good news and fake bad news are overwhelming, and the market jumps up and down. If you are not careful, you will be lured.
More or inducing empty.
7 Life-Saving Crypto Trading Tips That Cost Me Millions in Losses! Must-Read for Beginners, Recommended for Collection!
Suggestion: Avoid the "chaos" during the day and take action after 9 pm. At this time, market news is basically settled, K-line patterns are clearer, and direction judgment
It is also more accurate, which is equivalent to adding a "security lock" to yourself.
Two, take profits, don't let profits "fly" away
"Wanting to make more after making money" is the root cause of many people's losses! Don't always fantasize about doubling, locking in profits in time is the key.
Operation method: For example, if you make a profit of 1000U on the same day, immediately withdraw 300U to your bank card, and continue trading with the rest. I have seen too many people who made 3
Times more, they want 5 times more, but a single callback wipes out all their capital. Money in your wallet is real money!
Three, use indicators to speak, refuse to "pat your head" decision-making
Making orders based on feeling? That's no different from gambling!
Tool recommendation: Download TradingView, focus on these 3 indicators
MACD: Golden cross see more, dead cross see empty
RSI: Overbought (>70) watch out for callbacks, oversold (<30) pay attention to rebounds
Bollinger Bands: Contracting to accumulate power, break through the upper rail to see more, fall below the lower rail to see empty
Principle: At least 2 indicator signals are consistent before considering entering the market to reduce the probability of errors!
Four, the stop loss should be "alive", keeping the principal is the bottom line
When watching the market: flexibly adjust the stop loss price. For example, buy at 1000U, rise to 1100U, immediately raise the stop loss to 1050U, locking in 50U profit;
When you can't watch the market: set a 3% hard stop loss! To prevent sudden sharp drops from being "wiped out in one pot", there is a chance to turn over if the principal is there.
Five, mandatory withdrawal every week, reject digital games
The money in the account is not withdrawn, it is always just a string of numbers!
My habit: Fixedly transfer 30% of the profits to the bank card every Friday, and continue to roll the remaining positions. If you stick to it for a long time, both your wallet and account can grow steadily.
Growth, psychological pressure will also be much smaller ~
Six, K-line usage guide, find the right entry timing
Short-term operation: Keep an eye on the 1-hour chart. If there are two consecutive yang lines, you can try to go long;
Shock market: Switch to the 4-hour chart, enter the market again when the price falls near the support level, and buy the bottom more safely!
Seven, don't step on these pits!
▲ Leverage: Don't exceed 50 times, the higher the risk, the greater;
Currency: Stay away from altcoins such as Dogecoin and Shitcoin. The dealer will harvest you mercilessly;
▲Frequency: Do at most 3 orders per day, frequent trading is easy to get carried away;
▲ Funds: Never borrow money to speculate in coins. Don't touch money you can't afford to lose!
"Stop losses in time and let profits run!" Everyone has heard this trading "bible" and knows what it means.
On the surface, this sentence makes too much sense! However, many traders do exactly the opposite:
◎ Because they are afraid that the market will reverse and devour existing profits, they exit profitable trades early;
◎ Because they expect the market to reverse, they stay in losing trades for a long time.
If you do these two things for a long time, your trading will definitely end sooner than you think. Ask yourself, are you a trader like the one above?
No matter what trading strategy you use, whether it's indicator trading or price action trading, this conclusion applies. Especially for trading novices, blind trading is not a good thing.
However, why do I think this sentence is only "superficially" reasonable?
The Truth About "Letting Profits Run"
The problem with this statement is that it never tells you when to exit, nor does it mention that sometimes you shouldn't let profits run.
The chart above is a consolidation market, and each box represents a possible profit opportunity for you, but if you are in two of the trades at the same time, it is estimated that you will not have much profit in the end.
This is us talking about the market by looking at past charts, which is hindsight. The real situation may be that the first short trade may start to devour your funds after the market reverses. This is fatal for most traders, leading them into a retaliatory trading mentality.
And in the last short trade, although there are price action signals indicating that it will break down soon, this is only possible and may not happen at all, leading to your eventual disappointment.
We may be able to summarize such a trading rule for this situation:
"Letting profits run" in a range-bound market: Don't do this. If there is a breakout, then take profits on the opposing position.
In other words, it means that you must understand the market you are trading. The above example is in a range-bound market, at this time "letting profits run" is a disaster.
Larger timeframe considerations
Although data shows that many intraday traders have liquidated, I know you still favor intraday trading.
This kind of trading requires you to keep checking one type of chart. Then the problem comes: your information is not comprehensive enough. Maybe the trading is going smoothly all day and you are satisfied with the profit... But the market is like this:
This chart is a 1-hour chart. Let's break it down:
◎ Strong trend drives consolidation
◎ Some "false" signals let you enter the market before the market changes
Prices enter consolidation, and some new highs bring in many traders. You initially go long, and the market continues to make new highs, everything looks great! So you decide to "let the profits run".
The problem is: you never know what will happen next.
The small illustration in the upper left corner of the picture is a weekly chart, and the gray arrow points to the place where the decline in the big picture began.
In this example, you happen to be going long at the resistance level. This is the result of "letting profits run". If you had exited the trade before the last price drop, you would not have suffered a big loss. If you want to let profits run, you should also set a stop loss.
"Intraday Trading Rules: Look at larger time frames, analyze possible obstacles, such as previous support/resistance areas. If you are close to these ranges, be sure to tighten your stop loss, or look for reversal signals in price fluctuations and take profits in time."
So, the biggest problem with the trading wisdom of "letting profits run" is obvious: it's like saying nothing.
Is "letting profits run" a good idea?
This is certainly a good idea in a trending market. But you need to pay attention to these points:
1. What is the market situation of the traded market?
2. Are there obstacles near the price?
3. How to set a stop loss to ensure that price fluctuations do not cause you to lose your existing profits or suffer significant losses
Trading confidence: The key to letting profits run
The difference between successful traders and struggling traders often comes down to one thing: confidence. Knowing when to stick with a trade and trusting your trading plan is critical to maximizing returns and creating a favorable risk/reward balance.
In the second half of this article, we will explore how to cultivate confidence to stick with profitable trades and ultimately realize your full trading potential.
The Overlooked "Take Profit" Mentality
Traders often hear about the importance of stop losses - knowing when to exit before losses escalate. However, what about "take profit"? Many traders who have mastered stop losses often find it difficult to let profits continue to run. They often exit profitable trades too early, cutting potential returns, which makes it difficult for them to achieve sustained success. This is actually a matter of confidence: without the confidence to stick with a trade, traders are likely to close their positions too early, depriving themselves of the opportunity to earn more, thereby reducing the effectiveness of the overall trading strategy.
Confidence Determines Success or Failure
Imagine two traders entering the same trade. Both have set stop losses, but only one has a clear profit target. When the trade starts to show a profit, the first trader quickly exits, securing a small gain. The other trader, however, has a clear goal and persists even if the trade experiences a slight pullback, because he knows that his trading plan has long-term potential. This trader has confidence in his strategy and can withstand small fluctuations until he reaches his goal.
This situation is very common because confidence in trading comes not only from knowing when to cut losses, but also from trusting your profits. When a trade is going in your favor, it takes more confidence and resilience to hold on to a profitable trade, which is often stronger than the confidence needed when entering the trade.
Personal experience: Learn to trust my trading plan
In my trading career, I have personally experienced this situation. I remember there was a time when I was handling a series of profitable trades, I always closed my positions too early, locking in small profits. Eventually, I decided to make a change. I started setting clear profit targets based on historical price behavior and planned to let my trades run until those targets.
The first few times were indeed nerve-wracking - watching the floating profits rise and fall. But I stuck to the plan. Over time, I saw my account grow more steadily than before. This is not just a change in strategy, but also an increase in confidence. Each time I stuck to the target price, it strengthened my confidence in the trading plan, helping me to manage risk while allowing profitable trades to continue to hold.
Building Confidence Step by Step
Building confidence in sticking with a trade is a gradual process, but here are two ways that can help you incorporate it into your trading strategy:
◎ Build a confident mindset: Before the trade starts, practice in advance how you will deal with any pullbacks. Prepare yourself mentally with a mindset similar to "no risk, no reward". Treat stop-loss closeouts (i.e., break-even trades) as neutral outcomes, not losses. This way, you're less likely to feel frustrated and avoid unnecessary self-blame.
◎ Start small and build trust: You don't need to run the entire position to the target price. You can try to keep a small part of the position running to the target while locking in most of the profit. This will give you real experience in sticking to the trading plan while avoiding exposing the entire position to further market fluctuations. As you become more proficient, gradually increase the proportion of positions you keep running, which will help you build confidence in your trading plan over time.
The result of persisting in confidence
By following these steps, you will build the confidence to stick with profitable trades and ultimately realize your full trading potential, rather than closing positions too early. When you act with confidence, you begin to trust your trading plan and experience firsthand that your trading ideas work. Ironically, the "take profit" method is often actually a "stop confidence" method. By letting the trade continue to run - even in small increments - you are training yourself to believe in your judgment and deepen your confidence.
Conclusion: Gain Confidence Through Action
Confidence in trading is not just about believing that you will succeed, but about proving it to yourself through action. Trusting your judgment and sticking to your trading ideas will increase your confidence, making it easier for you to deal with losses and profits. Start small, be determined, and let confidence be the foundation of your trading journey.
In the crypto world, everyone has heard the story of "turning 10,000 into 1 million", but the reality is that most people not only don't make money, but are instead harvested by the market beyond recognition.
We don't have inside information, we don't have capital advantages, and we don't have trading experience that can withstand several rounds of bull and bear markets. All we can rely on is to recognize the market, recognize ourselves, establish rules, and control emotions.
The crypto world is not a shortcut to getting rich, but a killing field where only a few people survive.
One, first recognize the market: This is a world where uncertainty is king
The essence of the market is not technical game, but a probability game with high complexity.
You must accept that even the most brilliant strategy cannot be consistently profitable in all environments. Any trading system that claims a "100% win rate" is a scam.
What we can do is not to defeat the market, but to adapt to the market and use discipline to fight against uncertainty.
Profit and loss are from the same source: the way you make money determines the depth of your losses. Heavy position all-in: may double, or may return to zero. High leverage to grab a rebound: eat a bite of meat, but as long as the direction is wrong once, directly liquidate. Reversely averaging down: sometimes can get out of the trap, but under a one-sided trend is slow suicide
Traders who can really survive are repeatedly betting on "probability advantages" in a systematic way - earning more when they are right and losing less when they are wrong. Two, recognize yourself again: you are not a genius, let alone Liang Xi
Most people in the market do not die from ignorance, but from self-righteousness: indulging in prediction: trying to catch all the tops and bottoms. Technical obsession: piling up indicators, but ignoring position and risk control. Superstition of luck: attributing profit to oneself, blaming the market for loss. Overconfidence: making several consecutive profits and thinking that one is invincible
Please remember: Discipline > Technology, Execution > Inspiration, Stability > Stimulation.
The trades that really make money are often boring.
Three, the underlying logic that ordinary people can also make money
You don't need to be a genius, you just need to build a trading system that can be copied and persisted.
1) Fund management: Use only a small portion of the total funds for each opening, try lightly and add more when the trend is confirmed. Don't go all in with a heavy position from the beginning. The total position should not exceed 30% to leave room for maneuver.
2) Short-term cycle suitable for you: people with strong market sense and quick response play wave bands: suitable for people who can endure shocks and eat trends. Long-term: people who understand macro + fundamentals have a better chance of winning
3) The trading system should be simple, executable and replicable. Trend strategy: follow the trend, don't add positions against the trend. Shock strategy: buy low and sell high, stop loss should be fast. Arbitrage strategy: cross-platform price difference, small fluctuations arbitrage, high win rate but slow
4) Stop loss and take profit must be mechanically executed. The stop loss line should be set before entering the market, and positions should be cut when the time comes. Take profit can be done in batches. Don't be greedy or cowardly. It is enough to eat the middle section of the market.
5) Emotional management reduces the frequency of watching the market, avoids impulsive trading, accepts losses, doesn't add knives when losing, doesn't swell when winning, writes trading logs, and constantly reviews and optimizes the system. Four, the key to really surviving: mentality and compound interest
The most difficult thing to defeat in the crypto world is not the market, but one's own greed and fear.
What you need to do is not "ten times a year", but a stable annualized return + strict stop loss + not being cleared out of the market.
Don't underestimate the matter of "living". Compound interest is the only way for retail investors to compete with institutions: 30% annualized return, 20 times in 10 years; 50% annualized return, 57 times in 10 years; doubling in one year and liquidation in the second year is 0
And if you accidentally lose -
Final advice: Don't be a "legend", be a "survivor"
In the crypto world, legendary stories belong only to a very small number of people. The vast majority of winners are ordinary people who can survive in the long market.
Make fewer mistakes, execute more, review frequently, and maintain rationality and patience.
Strong recovery, assets doubled! Follow Da Li closely, arrange in advance, and easily reap big profits
Continue to follow: MYX BIO
