Second, maintain the correct trading mindset (detailed elaboration)
The correct trading mindset is not merely about 'not being greedy or fearful', but is a rational state built on an understanding of market rules and self-emotion management, which requires addressing three aspects: 'cognitive adjustment - emotional warning - habit formation'.
In terms of cognitive adjustment, it is important to abandon the fantasy of 'getting rich overnight' and accept the fact that 'contract trading is a game of probability'. In the cryptocurrency contract market, daily fluctuations can reach 10% - 20%, and even if there are short-term profits, it does not mean stable long-term gains. For example, a novice might accidentally capitalize on a Bitcoin surge, making a 50% profit in one day, and then believe they have mastered the trading secret. Subsequently, they increase their position size and leverage, only to incur an 80% loss when the market corrects. It is important to understand that short-term profits may come from luck, but long-term profitability must rely on solid trading skills and a rational mindset.
An emotional warning mechanism is also essential. When you encounter any of the following three situations, you must immediately pause trading: first, if you have made three or more consecutive profitable trades and begin to think 'increasing position size can earn more'; second, if you have incurred two or more consecutive losses and are eager to 'make up for losses' with the next trade; third, if you see significant market fluctuations, experience an accelerated heartbeat, sweaty palms, and find it difficult to calmly analyze the market. At this point, you can step away from the computer, take 10 minutes to breathe deeply or go for a walk, and once your emotions have calmed down, reassess the market.
In addition, developing the habit of 'pre-trade planning and post-trade review' can effectively stabilize your mindset. Before trading, clarify the entry logic, stop-loss and take-profit levels for each trade, and write them down in your trading journal to avoid making impulsive decisions influenced by emotions; after trading, regardless of profit or loss, analyze whether emotions interfered with the plan during the trading process, such as whether greed delayed taking profits or fear led to premature stop-losses. Through continuous review, gradually reduce the impact of emotions on trading.