“One cannot become rich without unexpected gains, and a horse cannot grow fat without night grass.” Many people in the cryptocurrency circle hope to make quick money, but due to a lack of understanding of the market and methods, they ultimately end up “losing both their spouse and their soldiers.”
The deeper the understanding of the market and the stricter the execution of rules, the more stable one can stand between bulls and bears. Even if there are still losses at this moment, as long as the direction is correct, every step is getting closer to profitability.
1. “Stop-loss is not about admitting defeat; it's leaving a way out for tomorrow's self.”
Only after the first liquidation does one understand stop-loss: previously resisting stop-loss was unwilling to accept the market's unpredictability and taking “hope” as the basis. Now viewing the stop-loss order as a gym membership — painful to pay, but a necessary investment for “long-term health” in trading, leaving room for a comeback tomorrow.
2. “The K-line chart is a mirror that reflects your true self.”
Obsessing over technical indicators easily leads to neglect of self-analysis: K-line fluctuations are a “mirror,” and the rapid breathing, trembling fingers, and the dilemma of cutting positions during a plummet truly test human nature. MACD and RSI are just tools; what truly needs to be tamed is the inner fear of loss and hope for gains.
3. “Liquidity is a gift, but it can also be a noose.”
Liquidity has both conveniences and traps: some are addicted to high-frequency trading’s “seconds in and out,” but like a child unwrapping a gift, they find little surprise. Platform risk control warns against “insatiable greed,” and once entangled, liquidity can turn from convenience to a noose, devouring the principal.
4. “True masters are all about ‘subtraction.’”
When first entering the industry, one always feels “seeing more means more choices = more opportunities,” piling up various coins and running multiple software, which instead leads to confusion and mistakes. After eliminating unrelated coins and closing redundant software, the market becomes clear. The “wolf-like traders” chasing 20 hot spots often turn into a “herd” harvested by algorithms — masters understand that trading should be “few but exquisite.”
5. “The most dangerous market conditions are hidden in the clamor of ‘this time is different.’”
During market frenzy, voices of “this time is different” and “guaranteed profit” abound, and some even mortgage their properties to enter the market. At this time, caution is needed: history does not repeat itself, but human nature is similar. Referring to the liquidation screenshots from 2018 reveals that while the market changes, human greed and luck evolve slowly, and the “this time is different” market hides fatal risks.
In the end, the irony of this industry is that when you no longer cling to “defeating the market” or “predicting ups and downs,” but learn to follow the market's rhythm and use discipline to control desire, you truly gain freedom in trading. @Air 安叔