Why is it easy to profit in simulated trading while it often leads to losses or liquidation in real trading? I believe many people have pondered this question. The fundamental reason is human nature. In a simulated environment, you can maintain a stable mindset, believe in yourself, and trust the market. However, once it comes to real trading, it becomes challenging to maintain that stable mindset, and it can even lead to sleepless nights.

So, as I have mentioned in my previous articles, trading ultimately tests your mindset. Regardless of whether you are doing short-term or medium to long-term trading, the first thing you must consider is the macro environment. It is well known that when Trump officially took office and relevant policies were implemented, the market definitely experienced a surge. If even some novices can see this, how can the clever main players and institutions not understand it? The so-called trend following means following the main players and institutions. Remember this point: you must have faith but not obsession, and never go against the market.

Next, let's look at the market and relevant technical analysis. I have always said that being bearish without shorting is due to the ongoing upward trend in the macro environment. However, the candlestick chart cannot just shoot straight up in a straight line; there will definitely be pullbacks and fluctuations.

Under the influence of this macro environment, the risk of shorting increases, and there is no low-risk long strategy. At this point, what is tested is your trading plan, position management, risk control ability, and practical experience.

Finally, I want to mention some bad habits that you must change in the cryptocurrency circle.

First, being stubborn. Many people are truly frighteningly convinced that their viewpoints are correct, going down a dark path. In truth, we all make mistakes. Only through continuous correction can we succeed. Our previous viewpoints may differ from our current ones because we have improved. Many people are unwilling to listen to others' opinions, and the end result is going down a dark path.

Second, the tendency to trade heavily. Most people are unwilling to become wealthy slowly, and with limited capital, they prefer to take big risks for miraculous gains. Occasionally, they may hit a big win, but over the long term, the majority of crypto enthusiasts end up losing significantly, and they are terrified of heavy positions, leading to stress and complaints about their living environment, while also failing to make money.

Third, the tendency to trade frequently. Honestly, most profits are made by luck over the long run. I'll stop here.