It was somewhat serendipitous that during my early years in the cryptocurrency space, I met a top mogul worth over a hundred billion through friends' recommendations. He closely collaborated with the company responsible for managing countless cryptocurrency asset cases for major companies, and previously sent me a PPT detailing virtual assets worth 200 million in a certain prefecture-level city, 1 billion in Taizhou, and 250 million in Hengshui, along with receipt numbers for bank transactions.
Without further ado, I learned from this top mogul whose net worth is close to ten billion. Initially, he was not focused on the blockchain industry but was involved in the stock and futures markets. Later on, he entered the cryptocurrency space. What he shared with me, I have summarized:
1: Trading is not merely about transactions; it is an investment, whether based on internal news or personal opinions and views. When engaging in trading, do not let emotions overpower your rationality.
2: Do not become arrogant or overly confident when in profit. When a person is consistently profitable, they can become excessively self-assured and judgmental. This is known as 'market sense,' which allows one to have enough confidence in the overall market and the various trades they hold. However, excessive confidence can lead to over-leveraging and expose you to significant losses, even risking complete liquidation. If losses occur at this time, it can lead to a series of stop-losses, resulting in even greater losses and a loss of market sense direction, which requires a long period of adjustment.
3: Don't be overly anxious about losses. When you encounter significant losses or small losses at a certain stage, anxiety can lead to misjudgments and unclear directions, resulting in erratic operations. At this point, various emotions can take over, controlling your thoughts. When emotions take hold, it complicates your thinking, especially when market signals are unclear, leading to a greater likelihood of amplified losses. Learn to control your emotions; when your thinking is clear and rational, you will have enough confidence to control yourself and adapt to the market. That is the right approach.
4: Humans are always the most greedy, whether in trading or reality. Only a few can resist temptation, as the vast majority harbor the thought that 'if something falls from the sky, why not take it? It doesn't cost anything. Will it continue to rise? Maybe a bit more, possibly, perhaps.' This endless stream of emotions arises without a clear expected target. The psychological goal should be, within your understanding, to recognize what is what, to avoid greed and impatience.
5: Technology is always a supportive tool; do not rely too heavily on various indicators, as this can lead to feelings of distrust after experiencing consecutive losses. Such reliance can create doubts and fears. However, your trading logic should be based on a firm belief in your own reasoning, adapting to the market with your unique trading logic.
6: The market changes constantly. Learn to adapt to the market and understand it to integrate into it, rather than waiting for opportunities to enter. When you learn to integrate and understand the market, seeing through its essence will lead you to develop your own trading logic. Trading logic often stems from the experiences of many; everyone has their own trading logic. While methods may vary, the underlying principles are often consistent, with the biggest difference being the space.
7: The cryptocurrency market is essentially an emotional and news-driven market. The profit-to-risk ratio is extremely high. When emotions run high, the market does not move according to fundamental directions. When impactful news breaks, it can trigger seismic events. Learn more, observe more, and ask more.