1: The truth about harmony: a double test of effort and wisdom
Investment is like other industries. Success requires knowledge accumulation and unremitting efforts. It is not easy to reach the top level in any field, and often requires talent and luck. However, investment, especially the contract market, is full of challenges. Even if you put in a lot of effort and time, you may still fail.
There is no shortage of smart people in the world, let alone capable people. Many friends have entered the crypto circle and played Heyue or options, thinking that they can make money in this market, but it is not the case. There are many people who are smarter and more capable than you. If you don’t even know the basics, how can you beat others?
Because the cryptocurrency market itself is full of uncertainty and fraud, a few years ago, exchanges often unplugged network cables, because there was no supervision in this industry a few years ago, plugging and unplugging network cables were just the most basic operations, and many exchanges such as ZB directly took away all the assets of users. So for Heyue, we are not only fighting against our opponents, we also have to fight against exchanges, dealers and institutions.
2. The cruel reality of the contract market
Data shows that in the Heyue market, about 90% of novices suffer losses within a few months of entering the market. In other industries, even if you are not a top talent, you can still get a stable income, but in the Heyue market, if you cannot rank among the top, survival will become difficult. The Heyue market is a high-risk field, where smart people gather and compete all the time. This is an industry where not all efforts are rewarded, and losses have almost become the norm. Many people enter the market with the mentality of making money, but only a few can really make a profit. You need to defeat your opponents and other institutional big dealers and be among the 20% class to succeed. Because in the financial market, what you earn is what others lose, especially in Heyue and options, most people are losing, so it is extremely important to surpass the 80% of people. Many friends enter the market to play Heyue without even understanding the most basic common sense and blindly participate, which will inevitably end up with zero. They don't even know the long-short ratio, and don't know the position of institutions and CME including big households. These data are extremely important reference data for the Heyue market.
3. Investing is a business
"Investment is a business" has two meanings: first, you need to use capital to make money. Insufficient capital can easily stimulate the gambler mentality, which is not conducive to a healthy investment mentality. For example, if you enter the Heyue market with $100, you can only choose to open a full position. Once the direction fluctuates in the opposite direction, the position will be immediately blown up and returned to zero. There is no risk resistance. Many people will say, can't I just open 5%? Of course you can, but what's the point of opening a $5 position even if you lose dozens of points at once?
Second, you need a unique profit model and full focus. Everyone has a different sense of the market and strategy. If you enter the market in the short term with your eyes closed and rely on guessing, even if you are right a few times, the end result will definitely be zero, because it only takes a few reverses to return to zero, so it is very important to gradually form your own unique sense of the market, and you need to invest a lot of time to study Bitcoin. Many novices violate these two when entering the market, investing a small amount of money and time, hoping to win a big with a small investment. This attitude is not only irresponsible, but also disrespectful to the market. We are all ordinary people, not the son of destiny. You can't get lucky and make a grand slam right from the start. Even if you guess right at the beginning, you will soon have an illusion that Heyue is very profitable, which will cause the subsequent decision-making to quickly lose direction and end up with zero!
4. The minority who make money and the majority who lose money
In the contract market, about 10% of people earn 90% of the profits. If you cannot join this 10%, the fate of being "eaten" is almost inevitable. Therefore, it is crucial to understand the nature of the contract market: it is not a place where you get what you pay for, losses are the norm, and those who make money need to be highly competitive.
Five: Some suggestions for beginners
1. Don’t ask: It’s normal to feel that you know nothing when you enter the market, but don’t be confused by all kinds of information. Many novices are keen to learn the “inside story” of the market, but they are prone to fall into various traps. Experienced investors focus on objective and verifiable information. In the contract market, various “routines” can be seen everywhere. Knowing these common traps can help you avoid most losses.
2. Take advantage of your own advantages: Cryptocurrency trading is essentially exchanging money for experience, and smart investors should use their own advantages to exchange for wealth. Ask yourself what your advantages are. If it is a wealth advantage, manage your positions reasonably and control the profit and loss ratio. A small amount of funds can also develop a successful trading strategy. If there is no obvious advantage, it is recommended to learn technical analysis, such as K-line charts, moving averages, etc. Many successful investors believe that technical analysis is more reliable than news. If you can't even understand the most basic graphics, it means that you are relying on luck. The only outcome of operating by luck is zero, without exception!
3. Be proficient in various information platforms, because violent fluctuations in the market are usually accompanied by information stimulation. In the dull market, we need to combine graphic analysis. For example: If UNI officially announced today that the handling fees collected will be used to repurchase UNI and destroy it, this super good news, once you grasp it for the first time and immediately go long, you will definitely get a good return. If you cannot get the news in time and identify the truth, when you see others talking about it in the WeChat group, the price of the currency will have risen a lot, and you will be trapped immediately if you go long, because the counterparty has already started to close its position at this time.
This is the four-step process I often talk about: Capture information --- Identify information --- Make decisions --- Enter the market
Conclusion
Ultimately, before entering the Heyue market, it is crucial to seriously think about how to use your own advantages to gain wealth. Even if you have a full-time job, you can still get a stable income and investment returns through reasonable planning. Although investment is risky, you can still achieve success through knowledge accumulation and rational decision-making. I hope that through this article, I can open a window for you on the road of investment. I wish you all a smooth investment journey and achieve wealth growth!
