After a transaction is completed, no matter whether the transaction is profitable or loss-making in the end, you should set a trading window for yourself. This window can effectively curb our impulsive decisions and give yourself time to review your previous order.
Imagine that when we make a profit, we may feel that today's fortune is quite good, and then we may have the idea of adding positions to chase the rise and sell the fall. When we lose money, we may be so excited that we will go all in to quickly recover our investment and directly increase the position ratio to 100%.
After taking profit, some people often immediately make a reverse order. In their minds, ending their long order means that the market will soon retreat and they can do the reverse operation. However, the core goal of our trading should be to obtain profits that are in line with our trading system, rather than trying to catch every market trend.
We are not quantitative robots and cannot capture every subtle change in the market. We must understand that profit and loss are common in trading. No one can only make profits without losses, and no one can only lose without making profits. We just need to find the part that we are sure of in the ever-changing market.
In the secondary market and on-chain areas, the larger returns that ordinary people can obtain usually come from the funds that are used to build positions at the bottom. Only this part of the funds has the opportunity to obtain several times or even dozens of times the returns, and it is definitely not a transaction that simply chases hot spots.
Among 10,000 aggressive gamblers, some may become rich overnight, but their good fortune may be fleeting, and the people who become rich each time are different. The media often pays attention to these emerging gamblers, making the market seem full of legendary stories of getting rich overnight. This leads to many friends being in the market but ignoring the areas they are good at, and eventually losing the big for the small.
In fact, we should correctly understand our position and focus on a certain track in the market. For example, funding rate arbitrage, secondary market bands, trend trading, on-chain alpha opportunities, hedging arbitrage of exchange rate pairs, beta income of staking mining, etc. Choose a method that suits your position allocation and then delve into it. When our strength is not enough to take care of everything at the same time, clarifying the goal is the key. Only in this way can we clear the fog, abandon the impetuous mentality, and focus on the market.