There are many ways to trade cryptocurrencies, but not all methods can be learned. We all hope to achieve good gains with the simplest methods, while friends in the crypto market are not unable to choose good coins, but rather overthink it! So how to maintain a stable mindset in a loss state?
Phase losses are something every trader often faces. Sometimes it's due to unfavorable market conditions, and once the mindset has a significant fluctuation, the execution phase collapses, leading to major problems.
At its root, it is merely the neglect of human 'vulnerability,' believing that relying on some simple method can ensure consistency, thinking that the logical assumptions can be realized in actual execution.
It seems that as long as 'positive expectation' is combined with 'long-term' and then 'mechanical execution,' achieving stable profits is not difficult.
But execution is not without cost; on the contrary, it can be very consuming. On one hand, 'positive expectation' is based on the premise of long-term, but saying it is simple.
A 'simple' action, when persisted under various complex market conditions and psychological states, is actually an astonishing test of mental resilience and financial strength.
Just like any segment pulled from historical trends could represent a possible market condition, low volatility and fluctuations lasting one or two years are also common.
In such market conditions, signals frequently fail. If you lose eight or nine trades in a row and your capital has retraced by a third, will the pressure make you fear and give up executing this 'strategy that has already lost for a month'?
On the other hand, overestimating one's capacity for tolerance, thinking that losing ten or twenty thousand is nothing, but when money evaporates quickly, the heart feels the sting, and the negative emotions cannot be digested for half a month.
Thus, difficulties are complex. Trading may sometimes undermine a person's confidence in the system, causing them to fall into intense mental exhaustion, while at other times it may hit their wallet, making it difficult to continue. One can say that each person's conflict point between ideals and reality is different.
But the reasons are basically similar - ignoring the vulnerability of ordinary people!
In execution, treating oneself as a decisive and ruthless character is actually a hesitant wanderer who is looking back and forth.
In judgment, imagining oneself as an objective and calm observer is actually being a fence-sitter easily swayed.
Imagining oneself as someone who regards money as nothing in risk control issues, but in reality is enslaved by material possessions and cannot let go.
So when realizing 'the vulnerability of human beings,' mistakes are common and worth accepting, especially when you recognize there are many uncontrollable challenges.
When it appears, the only effective method is to ignore it, counting it as part of the risk cost, rather than wanting to break free from human constraints and turn the uncontrollable into controllable.
In other words, we are never the masters of the market, but rather its observers. Speculation is about profiting from the irrational moments of market sentiment, while in the rational state of market sentiment, we have no winning chance.
Therefore, it is important to understand that we are looking for 'flaws,' not trying to grasp all the fluctuations. Just like when the market is bumpy, the market has nothing to do with us. Similarly, when it is strongly volatile, it does not mean that the 'price fluctuations' are money that should have been earned by us.
In hindsight, the opportunities that objectively appear and the opportunities you can utilize and do well are two different concepts. We need to recognize this.
Bystanders do not have an obligation to participate, nor will there be fixed gains, so there is no need to pursue stable profits.
What is the state of stable profit? In fact, it is unnecessary to say much. When you are confident enough in your abilities and no longer feel the pressure of pursuing profits or the loss of missing profits, then you clearly understand what kind of state this is.
But without this spiritual experience, trying to fantasize and realize fantasies through others' descriptions is impossible, because stable profit is not about maintaining a perfect trading state for the long term, but rather accepting that an imperfect fluctuation will inevitably occur in the trading state, learning to rest, and willingly resting.
So thinking about it is just thinking; it's better not to think and just live in the moment.
In other words, from the perspective of opportunity participation, do not think from an objective perspective about 'how many times the recent market conditions have occurred and how many times I have hit them,' and then be controlled by the mentality of gains and losses, excessively reflecting on self-doubt.
Rather, it should start from the standpoint of one's true intentions, recognizing that the reason for not engaging in these opportunities is inevitably due to certain aspects of them leading you to believe that your chances of winning in this market are not high, thus refraining from action is a reasonable decision based on weighing pros and cons.
What is self-reconciliation? It is to start everything from one's own will, rather than perceiving it from the reflection of the external environment.
If one cannot do that, then this person will live in the evaluations of the outside world, where self-awareness is a composite of others' views, leading to a life that is undoubtedly exhausting.
Therefore, traders should not demand themselves to be 'a flawless execution machine,' but rather 'an ordinary person who is good at self-guidance and reconciling with their inner self.' I think this would reduce many painful psychological conflicts.
Knowing the main cause of difficulties (human vulnerability) means there is no longer a question of 'how to persist amid losses.'
The main reason for continuous losses is that this person feels they have an obligation to participate in trading every day and every week, in pursuit of being able to control the outcome and trends.
Persisting in adversity is because one does not face the vulnerability of ordinary people, so they always believe the reasons stem from their own weakness, wanting to achieve the goal of a 'perfect rational person' through persistence. This goal allows the adversity to exist.
Therefore, a dim prospect is because one is pursuing something impossible, like becoming someone who never makes mistakes or someone who will never waver amid mistakes. Such a person only appears in biographical descriptions, and I seriously doubt if they truly exist in reality.
