After years of trading, a trader who can achieve stable profits must have reached a profound understanding of trading, much like the ranks in a game. If you ask me what rank I am in, I can say without exaggeration that I am at the King level. (+Follow)
1️⃣ Bronze Level:
Just entering the cryptocurrency world, enthusiastic about short-term trading, chasing hot themes, frequent operations, holding assets for a very short time of 1-3 days!
Enjoying the thrill of quick profits, but lacking awareness of market risks, ultimately losing and exiting.
The reason is simply relying on intuition for trading, not understanding technical analysis or fundamentals, and ignoring the essence of price movements. Then, after incurring losses, one begins to reflect, realizing the need for systematic learning, entering the technical analysis stage.
2️⃣ Silver Level:
Obsessed with research, using indicators like MACD, moving averages, and Fibonacci retracement, trying to accurately predict highs and lows through technical analysis.
Mistakenly viewing technical indicators as the 'wealth code,' believing that making money is as easy as breathing.
Over-relying on technical analysis, ignoring its lag and limitations, resulting in unstable profits.
Realizing the shortcomings of technical analysis, shifting towards fundamental research, and extending the investment cycle.
3️⃣ Gold Level:
Combining technical and fundamental analysis, starting to pay attention to the dynamics of major players and financial news in the cryptocurrency space.
Reducing frequent trading, but still unable to achieve stable profits, realizing that a good coin does not equal quick profits!
Suddenly discovering a disconnect between fundamentals and technicals, lacking a systematic trading strategy. Thus, one begins to build a trading system, including coin selection, entry and exit strategies, stop-loss, and capital management.
4️⃣ Diamond Level:
Having a mature trading system, but the results still exhibit randomness, sometimes profiting and sometimes losing.
Some people regress to the Bronze level due to frustration, while others begin to study the essence of the market (such as major player behavior and game theory logic).
5️⃣ King Level:
Acknowledging the uncertainty of the market, accepting that profits and losses come from the same source, overcoming human weaknesses like greed, fear, and luck.
Making rational decisions when trading, not pursuing perfect buy-sell positions, and being able to accept that beginners occasionally make more profits.
Shifting from 'beating the market' to 'managing oneself,' achieving long-term stable profits.
Not blaming losses on others, not being arrogant about profits, and making every trade based solely on logic.
The ultimate answer: there is no holy grail in the cryptocurrency world, stable profits = 30% skill + 70% mindset!