Friends say to watch less of the market, as it magnifies emotional impact on trading judgment. I said this place is lively, full of gamblers and signal chasers.

—— After the performance, we are all characters in the play

Ever since the big sell-off, shorting at highs has become a habit. A few days ago, I made a small profit with $AI16Z, and my small account stitched together to reach a 50% return. Over the weekend, a friend recommended $swarms. I took a quick look and saw it was also an AI concept. Not much, but it surged for an afternoon, breaking out with a double top. I felt a bit regretful; from the first big drop, I started to short (isn't it silly? Following the trend now feels confusing). Originally, I had a short position that made some profit, but I got stuck without exiting. It turned into a death spiral of chasing stops - adding positions - breaking even - getting stuck again after a pullback. From an unrealized gain of 200U, it ultimately exploded to a loss of 800U.

Looking back, it's the same old issues, losing once more to human nature.

Trading is not about enlightenment; it’s about refining one's mind too.

1. Adding positions against the trend can lead to death or injury.

Adding positions is like Martingale; Martingale can both win and lose. Win once, and you can lose it all. I looked at yesterday's lowest point and estimated I could have made 3000U by reversing. However, it had previously peaked over 580, and my account had already blown up. The subsequent pullbacks were also painful; now it’s still a heavy loss.

2. Avoid contracts with large discrepancies in pricing.

The new contract I was playing with hadn’t adjusted its leverage, still at 20x. Plus, this contract had a very strange pricing structure, with many decimal places for the transaction price but only three for the order price. A 1-point fluctuation is 0.25%, and after leverage, it becomes 5%. With the fees, a 17-point move results in liquidation; it’s a matter of a sudden price jump.

3. Discipline vs. human nature.

When the market is rising, I tend to forget about avoiding high leverage, controlling position sizes, and always using stop losses.

4. Don't be stubborn.

The swarms team suggested at the beginning of February to add positions and seek DAO control. The AI concept is currently a hot topic; don’t fight against the market makers. Generally, altcoins are destined to go to zero, but there are still exceptional ones.

5. Study API trading.

Human nature is difficult to control, from managing trading frequency to controlling position sizes and enforcing stop losses. However, when you refuse to admit defeat, the outcome is bound to be harsh. A friend had this idea before but was too lazy to implement it. Now I realize overcoming human nature through algorithmic trading is the optimal solution. Deepseek can already handle a lot of basic tasks; the future, or rather the present, belongs to algorithmic trading. If you don’t embrace it, you will inevitably be eliminated.

Don't give up hope; we can still win!