Hello everyone, I am trader Zhu Yidan. Recently, through live broadcasts, I've clearly felt that many new friends have entered the market, basically attracted by the news of Bitcoin's continuous new highs. Most people have only a half-understanding and many have already encountered various pitfalls and paid a lot of tuition. Many newcomers have an overly idealized understanding of this market, thinking that making money in this circle is easy. This kind of underestimation will eventually lead to heavy losses, which is why I thought of writing this article as a reminder for new friends to use as a reference.
The first point is to enter the market with small funds. In an unfamiliar market, paying tuition is inevitable, but it doesn't mean that the more tuition you pay, the faster and better you learn. There are indeed many newcomers who come in with big investments but lose all their capital before they even get a sense of the depth or taste of the market. Therefore, trying with small funds is very important. The lessons learned from losing a thousand are the same as those from losing a hundred thousand. Listen more, watch more, and act less. When I entered the market, I started with 6000, and when I made money in between, I immediately withdrew some to see if I could cash out, and then gradually increased my funds later.
The second point is to avoid high-leverage contract trading for spot trading. The difficulty of different trading modes is not the same. If we compare spot trading to climbing a mountain, then contract trading is like walking on a tightrope, especially high-leverage contract trading, which is like walking on a tightrope at a height of ten thousand meters. The vast majority of newcomers lose their funds this way. Through the rise and fall of prices, the price remains the same, but your position is gone, and your money is gone. Do you feel like you've been robbed? But the game rules clearly tell you that you can only bear the consequences of your own actions. I have never rejected leverage contracts; after all, they are just a financial tool. However, I strongly advise novice friends to avoid them, and even experienced friends should refrain from touching them. It is very difficult to use this tool well, and if you can't grasp it, it's better to stay away.
The third point is to improve your understanding and recognize the essence. When I first entered the industry, I heard a lot about 'understanding'. At that time, I felt like everyone was just showing off. It was only after I got hit a few times that I understood the importance of this term. Some old hands in this market have been struggling for years but still don't make money, and the reason lies here. You don't understand the essence of this 'game'; what you learn are all superficial things, things that others want you to see. You are getting further and further down the wrong path. Have you worked hard? Yes! But why don't you get the results you want? Because you took the wrong path! So how do we improve our understanding now? Still, listen more, learn more, and watch more. At the same time, you need to learn to distinguish. This market is mixed with fish and dragons, and there are many so-called teachers who are just pretending. At this time, you need to use your social experience to listen to their words and observe their actions. You may not understand the crypto world, but you have years of social experience, right? And you can't believe everything you hear; true knowledge comes from practice. It doesn't mean you have to pay fees right away; first, look at more free resources, and only consider the next step once you recognize someone.
The fourth point is to be wary of scams. This market is the closest place to money, destined to be full of fraud and scams. When it comes to money, no amount of caution is too much. Always remember that there are no free lunches, and high returns always come with high risks. Don't let interests blind your eyes; it is generally very difficult to recover money lost in scams in this circle.
There are still many details that cannot be finished in a short time, let's stop here for today. I have live broadcasts every night after 9 PM, if you are interested, you can come and listen. Also, you can find me in my Binance exclusive chat room, just click the link to join!