Why do 80% of retail investors lose money in a bull market? Because they sell low and buy high, because they chase after rising prices and panic sell.
Statistics show that in the last bull market, 190 million retail investors made a total profit of 6.7 billion. You might say, '6.7 billion is not small; if I could get a small share, I could marry a recent graduate!' But don’t celebrate too early: the big retail investors with accounts over 500,000 made a total profit of 254 billion, while those with accounts under 500,000 lost a total of 250 billion. Do you see the problem? Trading itself does not create wealth; it is merely a process of wealth redistribution.
And the bull market merely serves to mix the drinks.
What does it mean? Liquid courage!
So you’ve never touched trading before, and after finishing this bottle of wine, you boldly risk half of your savings in the trading market—that's liquid courage!
So you were always lightly invested, and after finishing this bottle of wine, you boldly sold your house and car, heavily invested in a gamble—that's liquid courage.
But after sobering up, you will still sell low and buy high, still chase after rising prices and panic sell, remaining unchanged. The reason the ugly duckling can become a swan is that it was originally a swan; the reason others can make money in the trading market is that they know where to buy low and where to sell high, only you happen to see them making money in a bull market. And you! Even if placed in a bull market, you would still find it difficult to make money—don’t be unconvinced! Let me give you an example; see if this is your own experience.
If I tell Zhang San that the PDD he currently holds can rise from 2 yuan to 1000 yuan, and that it really can rise to 1000 yuan in the future, all Zhang San needs to do is to hold firmly and sell in time when it reaches 1000 yuan to achieve financial freedom.
Now the question arises: when it rises to 4 yuan, do you think Zhang San will sell? Of course, he will, because Zhang San is afraid; he will think, 'I’m just a nobody; how can I trust what I say?' Four yuan may seem like the peak of this bull market to Zhang San, and if he doesn't sell now, he might get stuck! So he sells PDD at 4 yuan, doubling his investment, then buys his wife a big gold bracelet and a brand new Apple phone for his daughter.
But the market did not meet Zhang San's expectations. After Zhang San cleared his positions, PDD did not fall but rose, reaching 10 yuan, then 100 yuan, then 1000 yuan! At this point, will Zhang San buy back? Of course, he will, and he will buy even more! Because Zhang San is greedy; since he made money the first time, he surely can make money the second time. Moreover, this is a bull market! Not to mention that the neighbor Wang and the company's Xiao Li both made money on their second investment! So Zhang San pulls out 80% of his cash to buy more PDD at the high.
But the market did not meet Zhang San's expectations. After buying back, PDD fell again, from 1000 yuan to 100 yuan. Do you think Zhang San will cut his losses and decisively exit at this time? Of course not! Because Zhang San is both fearful and greedy; he fears his wife will find out he lost all his daughter's tutoring fees, yet he continues to dream of future poetry and distant places. Thus, Zhang San doubles down, secretly mortgaging his house to buy more.
This time Zhang San was wrong again; the market still did not meet his expectations. The PDD he held plummeted from 100 yuan to 50 yuan, then to 30 yuan, then to 10 yuan.
So do you understand why Zhang San sells low and buys high? Is the market targeting Zhang San? Is the market not going according to his expectations? The truth is, the trading pie is not meant for retail investors like Zhang San who know nothing. I emphasize again: trading itself does not create wealth; it is merely a process of wealth redistribution. So who can retail investors like Zhang San earn money from? Who can earn money from retail investors like Zhang San?
For example, it's like competing for a bench; the rules are simple: whoever can grab one of the two benches when the music stops wins. It sounds simple, but when you confidently walk up, you’re shocked to find your opponents are Schwarzenegger, who is 1.88 meters tall and weighs 107 kilograms, and several strong men around 1.80 meters tall.
Think about it: isn’t trading like this? Although the rule for making money is to buy low and sell high, the ones eyeing the market are the big players, institutions, hot money, and tens of trillions of retail investors like you.
Then you might ask, why do we still trade cryptocurrencies? Are we not left without a way to live?
No!
Although it's very difficult for you to earn money from institutions and hot money, can you earn money from other retail investors?
Although you may not be able to outrun Schwarzenegger, can you outrun the other few people for their benches?
When you encounter danger in the forest and fear being eaten by a bear, although you can't outrun a black bear, can you run faster than your companions?
......
Big fish eat small fish; small fish can't just sit and wait to be eaten by big fish! They have to find a rock crevice to hide, eat some shrimp, and nibble on some seaweed.
Entering the market from 50,000 to 100,000, then to 302,000; the third year reached 590,000, the fourth year in August reached 3.78 million, and in November reached over 7 million.
Until a few years ago, it was easy to withdraw 30 million from the cryptocurrency market.
During that time, I fell to rock bottom. At that moment, I thought I could be considered a big player in the cryptocurrency world. I decisively quit my job to focus on cryptocurrency trading, even borrowing money to trade. However, reality slapped me hard; the financial crisis caused me not only to lose all my profits but also to accumulate a massive debt, ultimately forcing me to sell my house, and my husband almost left me.
That period was my darkest hour. In just a few months, I experienced a fall from the peak to the bottom. But this also made me realize that the previous smooth sailing was not without an element of luck.
Thus, I feel that if I really want to continue down this path of trading, I still need to study diligently. In addition to understanding the basic knowledge, I also need to analyze news and study technical indicators. If I do not conduct in-depth research and reasonably plan to manage my finances, my funds will only be exhausted. In the end, as a retail investor with no foundation, I will only be joyfully entering the market and leaving in disappointment.
After severing all contact with classmates and friends for the next three years, staying home day and night reviewing, and sleeping on the keyboard when tired, I finally achieved financial freedom through cryptocurrency trading.
After ten years of ups and downs in the cryptocurrency sea, I have distilled six invincible rules, concise and invaluable. If you intend to develop long-term in the cryptocurrency world, you must carefully savor this insight; it will become a guiding light on your journey, helping you avoid pitfalls and worthy of treasuring.
Here, I also want to emphasize: the journey of trading cryptocurrencies often challenges the limits of human nature and requires cultivating independent insights to face fear with reverse thinking. Only in this way can fear dissipate. When faced with a dilemma, dare to choose the path you have never walked before, and the scales of victory will naturally tilt in your favor.
Once you muster the courage to take that decisive step, you will have stepped onto the shores of success. Remember, fate is the excuse of the weak, luck is the humility of the strong; only by actively seizing opportunities and facing life with a positive attitude can you rewrite the chapters of destiny. Destiny is never biased, but it always favors those who live earnestly and strive tirelessly.
The market will not punish you, but it will certainly teach you.
Some say the market is the fairest teacher. It won't punish you for making mistakes, but it will repeatedly give you the same lessons until you truly learn.
There are no 'secrets' in trading, and there are no 'shortcuts' in the market.
Many people think that the methods for making money are hidden in some mysterious book or held by top traders. But in reality, all the answers are right in front of you: trends, support and resistance, money management, execution... The essence of trading is simply to take these simple elements to the extreme.
Instead of struggling to predict, it's better to focus on the present.
Those who try to guess the market's ups and downs every day often end up either blowing up their accounts or doubting themselves. The key to trading is not in prediction, but in execution. You cannot control whether the next trade will profit or lose, but you can ensure that by consistently adhering to your trading rules, your win rate will naturally be on your side.
Profit relies on patience, and losses require decisiveness.
When entering the market, who doesn't want to 'earn without loss'? But the truth of trading is: you must accept losses to truly make money. Losses themselves are not scary; what’s scary is stubbornly holding onto losses without admitting defeat. True profit doesn’t come from frequent operations, but from seizing the right market conditions and patiently holding onto profits.
The more you stare at the screen, the faster you might lose.
Many people mistakenly believe that closely monitoring the market and frequent trading will increase their win rate. But the reality is that this will only make you more anxious and harder to control your actions. The truly profitable individuals often understand the importance of keeping a distance, waiting for the market to present opportunities instead of exhausting themselves chasing every fluctuation.
The more stable the trading, the more 'boring' life becomes.
True experts do not rely on passion and impulse, but on discipline and patience. For them, trading is a monotonous process of repeatedly executing strategies—rules remain unchanged, mindset remains calm, not elated by profits nor devastated by losses. They are more like calm executors rather than impulsive gamblers.
Living longer in the market is more important than running fast.
Trading is like a marathon; those who win in the end are not the fastest, but those who can persist to the finish line. Those eliminated by the market are not unintelligent, but they did not survive. True experts are most concerned not with short-term gains but with how to control risks, maintain rhythm, and always ensure their eligibility to continue playing.
In the end, I want to say: trading is not the market testing you, but you training yourself.
The market will not reward your diligence, nor will it treat you specially just because you work hard. It remains unchanged; the only thing that can change is yourself.
Believe me, knowing many truths, you still might not live a good life.
Is understanding a principle about deeply knowing it in your heart? Or is it an intuitive understanding? Is it gained through personal experience or just heard from others? Surface understanding is merely the extent to which I’ve heard this statement, and not through deep thought in my brain, being stingy in using my mind to judge. Such understanding is indeed useless to you and will ultimately validate the saying 'not living a good life.'
Trading is not just about understanding principles to make profits; it also must begin with a plan. Success begins with a plan; without a plan, it is a plan for failure.
In trading, failing to maintain consistent operations stems from ignorance; thus, actions can only be ideas, and executing them is merely a fantasy. Analyzing from the essence, it is because you do not understand the rules of your operations, do not grasp the probability of stop-loss occurrences, and hence lose confidence in your system after several losses, leading to doubt and the search for another system. Next time you encounter similar problems, you will look for a new system, and this cycle will repeat itself—this is human nature. Failing to achieve consistency in trading ultimately reflects a lack of deep understanding of your profit logic and the robustness of the system, insufficient drawdown, and a lack of confidence. Furthermore, you may not adequately estimate the potential losses caused by unsuitable market conditions.
You need to understand your trading logic: what kind of money can you earn? When should you not try, what are the reasons for losing money? For me, it involves making small breakthroughs against the trend. Testing the probability of profitability in the system, estimating the maximum loss when extreme losses occur; once you think clearly and consider thoroughly, you will naturally achieve consistency. After over a decade in cryptocurrencies, making waves, I increasingly understand how to select mainstream themes, and in the context of a major upward trend, hold onto valuable low-priced coins. Victory will ultimately belong to you!
Trading is like life; maintaining inner peace, embracing imperfections, and understanding the importance of simple perseverance may lead to happiness. Being driven by human instincts to chase passion ultimately leads to futile efforts.
Good luck! Feel free to reach out to me anytime with questions! You can follow me!!!#美国加征关税 #币安合约将上线JELLYJELLY $SUI
