A man born in '90, graduated from university in 2012, started working in Shenzhen, and entered the cryptocurrency world in early 2015.
Currently, I have two apartments and two cars in Guangzhou, a Land Rover and a Mercedes-Benz. I can spend 100,000 a month without any pressure, and most of my other assets are held in exchanges.
In fact, trading is an extremely tedious task because being engaged for a long time has passed the excitement phase. It’s no longer the stage of being thrilled by some fluctuations.
1. "Staying up late" is basic operation; for our group, it's simply a daily routine. So you often see so-called genius traders looking ten years older, with a big belly. Fortunately, I still pay great attention to my appearance since I rely on my looks to make a living. Hahaha~
2. "Casual" is not what you imagine as a daily life of bright lights and wine; more often, it is a state of casual handling. Even when going out to play, one cannot fully enter the state. A state called anxiety urges me not to stop because there are too many who trust us; each bit of trust is a pressure for us, and pressure pushes us to become better. Every day is not about feasting and socializing, but about endless monitoring of the market, looking at news, and reflecting and summarizing. At least, this is how I am. The messages on my phone are endless.
3. [Pressure] As for pressure? Hehe, from initially solving pressure issues to now increasing one's ability to withstand pressure. Some ask why we always have to pay attention. Because contracts primarily focus on short-term trades, we basically look for suitable opportunities. Then, I respond to various questions from others; I am still a good person, haha, and the differences in points are still very large; those who understand, understand. Lastly, let me share my trading principles:
1. Say goodbye to feeling; respect the market's emotions
2. Strictly set stop-loss levels; stop-loss levels must be determined by the market and be within your acceptable loss range.
3. Stick to your original view; if you are wrong, take responsibility.
4. Trading is not about who earns more, but about who goes further.
Finally, I hope all the buddies who read this can overcome their human nature because trading is a struggle against human nature~
To summarize what I've done well:
Through trading, I have penetrated the meaning of life, learning to examine everything around me from the perspective of volatility and probability, and to see clearly what I want. This is my greatest gain from trading study and research.
Since I thought I had gained insight, I buckle my seatbelt while driving, quit smoking, restrain my arrogance and impatience, live diligently, love learning, love working, and treat all people and things around me kindly.
Get rid of bad habits, and everything will come naturally, effortlessly.
I bought a piece of cheap jade and engraved on it the phrase "A gentleman is gentle as jade" to encourage myself.
I have realized many truths; let me casually mention one: all correct goals are to self-validate errors. I amusingly verified it.
Now, trading requires me to stop trading. Really, I suddenly feel that a life of shortcuts is meaningless. This way of making money is unfulfilling and will destroy my hopes for the future.
I want to temporarily break free from a solitary life and do things I love outside of work. I started learning calligraphy, sketching, appreciating famous paintings, playing the electronic piano, listening to music, studying psychology, reading the Four Books and Five Classics, smiling and chatting with people actively, inviting others to dinner when possible, and strolling in the park whenever I have time, looking at trees, mountains, and water. These happiest things have nothing to do with money. I never thought about changing anything; I am just happy to see and experience more of this world. Humanity has inherited so many interesting and lovely cultures; why would you entrust your life to candlestick charts and live a life of loneliness?
These are all the lessons trading has taught me. What do you say is the essence of trading? It is a reflection of one's inner self; to understand oneself! If you manage to balance yourself, the market will also show humility and consideration. If you are insatiable, the market will surely leave you exhausted and dry. If you try to defeat the market, the market will make you vanish without a trace.
"I have failed in my life!"
This is a reflection by those successful speculative predecessors who committed suicide when they were far behind. Speculation is too quick and too crazy; since the body cannot keep up, why not slow down?
So what is the true essence of trading? I simply seek a defeat.
So what is the true meaning of life? I only seek a death.
Do you think this is pessimistic? Do you think this is arrogant?
No! This is a calm and peaceful attitude towards the game, neither happy nor sad, neither fearful nor daunted.
Unity of knowledge and action in trading.
Unity of knowledge and action means that your thoughts and ideas must align with your actions; this is actually very difficult to achieve. I often like to use this phrase to describe the contradictions in trading: The struggle between thought and action.
If one can persist in this for a long time, it’s a breakthrough. In fact, many people analyze the market correctly and their analyses are quite accurate, but why do the trades they make end up in losses? This is due to a disconnect between their actions and their thoughts.
This point also has another situation; that is, when one cannot accurately gauge the market and one's subjective view is very uncertain, it is best not to place orders. Why? It's actually quite simple. When you don't even dare to believe in yourself, it's very challenging to do well. Many people choose to take a gamble or ask others how to operate. This reminds me of a friend's saying: "Gambling is wrong, but not gambling is missing out." This is indeed very reasonable, but at that time, I rebutted him. In this market, I would rather miss out than make a mistake.
Therefore, at this time, it is best not to gamble. Neither long nor short. In fact, many people cannot stop their hands; as long as the market moves, they want to place trades. This problem is also widespread. Thus, the simple principle of "watch more, act less" has eliminated a group of people. You constantly trade, and there are three types of people who really like you (exchange staff, futures company staff, your broker). I believe that if an investor frequently trades in this market, their lifespan in the market is correspondingly shortened; comparatively, it is harmful to both parties.
The above also includes a situation where one asks for others' opinions to place orders when uncertain. First, understand that this order is not placed based on your subjective consciousness, yet it is still your order. At this point, you might think, since others are doing this, it should be fine for me to do the same. This is a significant issue; the difference is immense.
Why? First, in others' minds, this order is generally planned for what to do in case of mistakes or when to take profits if correct. In your own concept, there are no strategies in place. Therefore, once encountering unusual situations, you begin to panic, not knowing where to start. Even if you are right, do you know when to take profits? In your subconscious, there is no concept of taking profits, only the concept of when others are closing their positions.
At this time, due to one's own capital and positions, the mindset is different from others. Therefore, the strategies to be adopted are vastly different. Another flaw some traders have is that they know very well what their views are but still go ask those around them what they think about the market. This leads to the following negative phenomena:
1. Your views and directions are generally the same as his.
2. The thoughts of the two people are completely inconsistent. The first is fine; both can revel in their joy (but it can also fuel their greed). The latter is troublesome; for example, when another's analysis seems more apt and comprehensive than one's own, doubts about one's judgment begin to arise, leading to confusion.
At this time, trading completely lacks a big-picture view and is very limited. Therefore, I personally believe that discussing the market is necessary, but it should be situational. It’s best to communicate more about mindset and share past mistakes rather than discussing how to view future markets. I believe that discussing how to view future markets is of little significance; who knows what the future market will be like?
What we need to do is not predict how accurate the market situation will be, but to determine what strategy should be used when the market is unfavorable to us. Making money when the market is favorable is just a natural outcome. Therefore, if the strategy is done well, you need not be overly troubled and mysterious about analyzing the market. Moreover, I personally believe that blindly predicting the market is an impractical behavior.
Successful investing is simply repeating the right things correctly
The market is like the primitive forest of Africa; the most important thing is to survive. The principle of technical analysis: strive for simplicity. It should be simple enough not to need brain power and not to be superstitious about complex technical analysis methods. Have confidence in the system you set for yourself and not be swayed by personal emotions, prejudices, or wishful thinking. Wanting to surpass and improve it must pass the test of time and practical experience.
You must have patience to wait for the system to send out operational signals. Once a position is established, you must have the same patience to hold it still until the system sends a reversal signal. You must strictly adhere to principles and operate according to the signals indicated by the system. Only when the market shows a strong trend should you enter. If you judge the trend incorrectly, immediately cut the position and exit. When the trend analysis is correct, pyramid your investment. Money is made by "sitting" and not through operations; only use objective methods to judge trend reversals when closing positions.
How to kill time during long-term holdings is also key to whether one can maintain long positions. If necessary, one can adopt an "ostrich policy" to avoid the intense emotions generated during the most volatile periods of a major market event.
The risk and return contained in price are a possibility, not something that can be absolutely realized. We can use technical tools to judge the probability of such occurrences, but we cannot say it will definitely happen. This is why stop-loss is necessary.
You can only trade based on your views of the market. Once a person starts predicting things, vanity will come into play, making it hard for them to accept anything that deviates from their predictions during the trading process. However, true wealth is achieved through shrewd exits, as it allows traders to stop losses and roll profits.
In short, people earn money by discovering themselves, realizing their potential, and aligning with the market's pace. When a rebound or consolidation occurs, people begin to hesitate; trading often becomes frantic, short-term attacks arise frequently, and both long and short positions are frequently swapped. Losing not only direction but also oneself. This self is belief and its trading system!
This kind of losing oneself ultimately prevents traders from going further. As long as you trade according to signals and act according to rules, you will inadvertently find that trading is not that difficult. Stick to one method, study it thoroughly, control your mindset, and you will succeed.
Most investors fail to realize that there are only a few days each month when substantial profits can be made. For the rest of the time, if you are not in trouble, you are doing well in your duties. Remember to keep your account intact at all times, waiting for a major market event.
Trading is like warfare; if you are only 50% sure, you don't engage; if you are 70% sure, you still don't engage. You must wait until you are 100% sure to strike with full force, but war changes rapidly, so how can there ever be 100% certainty?
It helps you identify trends and follow trends. Act when you must act, stop when you must stop. In a strong market, buying points in technical indicators are accurate, but selling points are often not; in a weak market, the selling points in technical indicators are accurate, but buying points are not. Positions that "follow the trend" can yield significant profits.
So never easily "abandon ship." Throughout this process, many temptations may arise, luring you to seize small fluctuations and rush against the trend. Unless you are familiar with this path and have set stop-loss points, do not enter or exit carelessly.
People invest based on price fluctuations, but if people's hearts fluctuate faster and larger than prices, they lose the most precious stability. This makes trend judgment easily skewed, and of course, it is also easier to repeatedly overturn one's established investment plans, falling into the dilemma of chasing rises and selling lows.
Secrets to success in the cryptocurrency world: Don’t look back in regret.
Profit comes from persisting in the trend orders that others have abandoned, seizing opportunities that others do not want, and doing what others dare not do. In investment, there is only insufficient persistence leading to abandonment, but no complete failure. The same applies to trading; one might have a positive outlook but change direction with market fluctuations. Originally bearish, they might exit and go long just because the market has risen a little, ultimately delaying the downward trend and causing losses. Such examples are numerous in trading; success requires persistence.
What are the four mindsets and five skills a successful cryptocurrency trader should have for long-term survival in the market?
1. Don't be arrogant and complacent when profitable.
An arrogant person ultimately destroys themselves in their pride. In the process of investment and finance, if a person becomes arrogant and complacent due to making profits, there will always come a day of losses. The reason is that proud and complacent people stop listening to others' opinions and suggestions because of their small achievements. Even when the market changes, they will stubbornly believe in themselves, thinking their decisions are correct, and will neglect risk prevention, ultimately likely suffering losses.
2. Do not rush to recover losses.
It is normal to have profits and losses in cryptocurrency trading. After discussing profits, let's talk about losses. Profits can make some people arrogant, while losses can trigger many people's desire to recover. However, recovering also depends on timing; if one rushes to recover, it can lead to irrational decisions. For example, some people eager to recover will bet all their trading funds on a seemingly promising coin. However, the market is always unpredictable and uncontrollable; if that particular stock drops, not only will one fail to recover, but will also incur greater losses.
3. Don't be greedy for quick gains
Accumulating wealth through cryptocurrency trading is a long process. If during this process one is greedy and desires quick profits, it is basically impossible to achieve wealth growth. Both mentalities lead to a relentless pursuit of benefits, and when faced with high returns, one loses rationality. But high returns mean high risks; blind investment only leads to failure. Only by pursuing stable wealth growth can one balance risk and profit.
4. Do not be overly concerned about gains and losses.
Yingying believes that investors who are overly concerned about gains and losses often struggle for a long time before investing, fearing their money will incur losses. When they finally make up their mind to invest, this psychology becomes even more pronounced. As soon as they see their account balance decrease, they become anxious and irritable. If it decreases too much, they either withdraw their capital or seek insider information in hopes of quickly recovering, usually ending in losses. Meanwhile, if they hear news of platforms going offline or withdrawal issues, they will worry about their investments' safety, and even if their platform shows no issues, they will choose not to invest anymore, making it difficult to continue on the path of investment and finance.
Intraday trading skills and points to note
1. Market sentiment and emotion: The strength of bullish and bearish sentiment can be analyzed from changes in trading volume and open interest.
If there is heavy volume but the price doesn't drop, it may be about to stop dropping. If there is heavy volume but the price can't rise, it may be nearing a short-term peak.
The volume requirements during the rising process and the falling process are different.
Rising process: requires sustained and uniform volume. In a 3-minute candlestick chart, uniform volume suggests that the upward trend will continue. If there is a significant decrease in volume or a very large volume appears, the rise may pause. Falling process: As long as critical levels are broken with volume, the downward trend will continue.
When the price rises to a certain level and stops rising, yet positions continue to increase, and buy and sell orders are placed lower and lower, it indicates that the price may be about to fall.
Increasing positions without rising is a very good opportunity to short; conversely, increasing positions without falling makes it easy to rebound.
2. Key points: Draw out support, resistance, trend lines, etc. on the chart, and act quickly when prices reach or break these key levels.
I personally use Fibonacci retracement to predict support and resistance.
3. Trading rules: Only one variety can be operated within a phased time.
Continuously track the varieties being operated until they no longer carry speculative value.
4. Market window: One-minute window—this is for grasping entry and exit timing; three-minute window—this is used to monitor the conditions after entry; 30-minute or 60-minute window—used to monitor intra-day trend changes.
Here’s a reminder for everyone: There are countless opportunities for operation. If you are stopped out, don’t rush to regain it immediately.
If you stop loss, that trade is completed. The next trade is a new one; whatever you earn is what you earn. Don’t let previous trades dictate the goals for the next operation, as that will lead to losses every time.
5. Be sure to keep records.
Try to record your feelings and operational details at that time because words don’t lie. Only through genuine records and serious summaries can you find direction for the next correct decision.
Honestly, being able to personally experience and witness such a historical moment is a rare opportunity for growth. In other words, this experience is a necessary path toward becoming a mature investor. As the saying goes, only through personal experience can one gain a broader perspective.
In the investment process, "seeing is believing" is both an illusion and the only magical force that can truly allow people to believe and accumulate knowledge and experience.
If one does not fully utilize and absorb this historic experience, it would truly be a waste of this precious opportunity.
6. Never go all in.
Whether in the cryptocurrency world or the stock market, truly mature investors do not choose to go all in.
Because black swan events—those extreme situations—will definitely happen, especially in markets as volatile as cryptocurrency. This seems like a simple principle, but it is very challenging to execute in practice.
Of course, you may have various reasons to go all in, such as having little capital or thinking that the assets you just bought will soon rise. Regardless, you will always be reluctant to let your money sit idle and feel the impulse to invest it at any moment. I completely understand this feeling. However, reality mercilessly teaches us a lesson.
Therefore, I decided to leave at least 15% of my position free after the next wave of rising. I initially wanted to leave more, but I know I might be reluctant, so I’ll take it slow. After all, cultivation is not an overnight success. This reserved capital will only be reinvested when there is a market drop of about 30%.
7. A crash is the best test of human nature.
A market crash is both a mirror of human nature and a touchstone of it. Just as most people can share joy but find it hard to share suffering, each crash not only causes prices to plummet but also reveals the truth of human nature.
In the past, I helped several strangers make several times their investment. Some were grateful and insisted on transferring coins to thank me; while others felt powerful when they made money, but once they lost, they blamed me.
This crash especially made these differences more apparent. Of course, I’m not foolish; after this, I am already clear about how to treat these people.
8. Always buy only those coins that make you feel secure holding.
Honestly, the reason I wasn't particularly anxious this time is that over the years, whether buying coins or trading stocks, I have only bought those assets that I believe would be completely fine even if I held them for over five years. This has become my amulet for a peaceful night's sleep.
Of course, I must admit that the various fluctuations in the market recently made me unable to resist and buy some small coins. However, since the amount is relatively small, I can accept it even if it goes to zero, so I was not too anxious. I hope everyone can remember and follow this principle; it will help you avoid many troubles and greatly improve your quality of life. Only by holding truly quality assets can one achieve true peace of mind.
Deep insights: The survival rule in the cryptocurrency world is not to pursue short-term profits, but to build a stable profit system. The compounding effect is like a snowball; the longer it rolls, the more powerful it becomes. Only by establishing a scientific position management and risk control mechanism can assets continue to appreciate amidst market fluctuations.
In the face of a rapidly changing market, we need to establish a dynamic observation system: when Bitcoin breaks through key resistance levels, when mainstream coins show divergence signals, and when market sentiment indexes enter extreme zones, these are all important points to watch.
True winners in the cryptocurrency world can not only reap profits in bull markets but also preserve their strength in bear markets.
Understanding trading is a similar process, from a loss of seven to a break-even and then to a profit; it's just about being focused and not chasing various profit models. Firmly establish one trading system, and over time this system will become your ATM.
