Unite with your conscience, follow the trend! There is no good or evil in the heart; do not be swayed by the rise and fall of coin prices.
The cryptocurrency market changes rapidly, and decision-making often requires high intuition and judgment. 'Cultivating conscience' emphasizes the cultivation of intuition rather than reliance on external factors, suitable for investors to quickly grasp core information and discover investment opportunities in a complex market.
1. The 'conscience' of investing can be understood as a profound understanding of market laws and essence. For example, an experienced trader may quickly assess the potential impact of a certain pattern or news after many years of practice. 'Cultivating conscience' requires investors to develop this sensitivity through continuous practice and reflection, making it a form of 'automated wisdom.' (Internalization, knowing autumn from one leaf, quick response)
In the cryptocurrency market, greed and fear are the two emotions that most easily lead to losses. When the market rises sharply, people chase prices out of greed; when the market falls sharply, they cut losses out of fear. The trick to 'cultivating conscience' lies in being aware of one's emotions. When emotions fluctuate, stop and examine whether your decisions are based on rational analysis or driven by market emotions. Each time you face extreme market conditions, train yourself to remain calm, using conscience (rationality) instead of emotions, avoiding the vicious cycle caused by 'chasing highs and cutting losses.' Learn to accept your shortcomings, confront losses without evasion, and reflect on the problems to extract experience from them. Traders must always maintain a learning attitude and cannot stagnate due to short-term profits or temporary understanding. Pay attention to the deeper logic of the market, including technical background, economic policy, macroeconomics, and geopolitical dynamics. Continuously learn fundamental knowledge about blockchain technology, economics, and policy changes to lay a solid foundation for intuition. Repeatedly review trading behavior, analyzing the logic behind correct and incorrect decisions. 'Calm': Maintain composure during market turbulence and do not rush to act. For example, when the market rises sharply, calmly assess the risk of bubbles; when the market falls, observe whether it is an opportunity for 'buying panic.' 'Observe': Actively collect market data, policy information, and industry trends for comprehensive analysis, in order to find the right timing for action in 'calm.'
3. Spend 15 minutes each day on 'trading meditation,' reflecting on the original intention and emotional state of trading. Before placing an order, ask yourself: Is this trade based on rational analysis? Or is it driven by market emotions? Follow the trend: When the market trend is clear, position yourself accordingly rather than against it. Before each trade, ask yourself whether you have deviated from your original intention and long-term goals. If the decision is purely an emotional reaction (such as panic selling or blindly chasing highs), adjust promptly and return to rationality.
4. 'Good trading is like a craving for knowledge' can be likened to a trader's thirst for knowledge and skills, fostering a passion for market analysis, on-chain data, technical charts, etc., and craving growth just like pursuing profits. Truly excellent traders do not merely focus on short-term returns but maintain a lasting interest and passion for learning about crypto technology, understanding industry trends, and researching project fundamentals. (Joy)
Practice in action, unite knowledge and action, cultivate oneself through trading, and find joy in trading:
1. 'Refining one' represents focus and continuous improvement; traders should refine their strategies daily, enhancing skills through constant practice and review. 'Practice in action' means trading skills cannot remain at theoretical learning but must be continuously practiced through real trading (testing strategies with small amounts) to gradually optimize.
2. Summarize after each trade: Did this trade follow the established plan? What areas can be optimized? Through this continuous improvement process, gradually accumulate experience.
3. Do not rush for quick success, but focus on every step forward, whether big or small, as long as there is accumulation, it can form a long-term advantage. (And take joy in this)
4. Focus on improving one detail each day; long-term accumulation will eventually lead to a qualitative leap. (High mountains are climbed one step at a time) Constantly optimize trading strategies, focus on your areas of strength, and build core competitiveness. (Focus)
5. Establish your own trading logic and methods, rather than simply copying others' strategies. (Build your own trading system)
6. Focus on inner cultivation, including emotional control, risk management, and analytical skills.
Not being swayed:
1. 'Movement is still, stillness is movement': Maintain calm (not being swayed) amidst fluctuations. In 'movement': Make calm decisions and strictly execute the trading plan. In 'stillness': Patiently wait for opportunities and deeply think about strategies and logic. Develop a clear trading plan that includes entry points, stop-loss points, and profit targets. When market emotions become extreme (such as excessive greed or fear), maintain calm by adhering to the plan and reviewing long-term logic. Use technical indicators, fundamental analysis, and historical data to help make calmer judgments. Not being swayed: Traders should remain calm and rational, avoiding undue influence from market emotional fluctuations. Investors need to cultivate the ability to calmly observe and respond gracefully amidst market frenzy or panic. Overcoming desires: Continuous self-reflection and correction are needed for personal desires (such as eagerness for profits or fear of missing opportunities). For example, in the face of FOMO emotions from a rapid surge or fear from losses, quickly 'overcome desires' and return to the trading plan and fundamental analysis.
2. Set strict risk management rules, such as profit-taking and stop-loss levels. Reflect before and after each trade on whether emotions interfered, record emotional triggers, and develop an improvement plan.
Four Capture the main contradictions:
(University): 'There is a fundamental and a secondary aspect to things, and a beginning and an end to matters. Knowing the order of priority leads to the right path.'
1. Application in trading: Traders need to clarify what is 'fundamental' (core goal) and what is 'secondary' (minor goal), what is urgent, and what can be postponed.
2. For instance, during significant market fluctuations, the first priority should be to protect your principal; risk control takes precedence over pursuing returns; secondly, focus on long-term goals rather than short-term price fluctuations.
3. Determine the priority of the trading plan, clarify the logic of entry and stop-loss, and do not lose direction due to short-term temptations.
4. Treat long-term investment goals as 'fundamentals' and see short-term price fluctuations or chasing trends as 'secondary,' allocating energy reasonably to avoid distraction and confusion. For instance, the previous 'bull market' might have been driven by DeFi, while now it may be Layer 2 or AI-related projects. Traders need to quickly identify trends and adjust their strategies. (Focus on opportunities in emerging sectors, such as RWA sector, etc.)