Lost a hundred summarized trading experiences in the crypto circle 😅😭
I spent three hours organizing my trading experience.
🔴 Emotions may be relatively abstract; maybe first think about what temptation is in trading? The simplest understanding is the desire to catch a rocket when prices are rising. Fearing to arrive late and miss the rocket. This is the most common temptation. Upon deeper analysis, it's not wrong to want to catch the rocket; rather, in most cases, it has been flying for a long time before you truly boarded. In other words, the issue here is not the temptation but that you were lured into acting too late. Although many people are genuinely tempted to get on, most are late. This is the time difference in trading.
Being truly tempted means being deceived. The main force constructs a set of combinations, sets a trap, and lures retail investors in. This is the most common and straightforward form of temptation.
🔴 In the early years of trading, I was basically being rubbed against the ground by the market every day. So I began to reflect and establish my own trading system.
In fact, trading can be both difficult and simple. It's difficult because it's a complex probability game involving capital management, psychological development, and market understanding; it's simple because its core logic has never changed, which is that I am competing with the market for money.
1. Bet small to gain big. You need to understand that the market has much more money than you do; you can't go head-to-head but must seize a trend and take a hefty bite. When you can't win, retreat decisively and take a small loss; when you can win, chase hard to maximize profits.
2. Only use fixed chips to test. For each operation, I control my losses within a fixed range, which is my stop-loss cost. As long as the losses are controllable, my mindset can remain steady.
3. Only operate on breakout points. The main battleground in the market often appears during significant fluctuations; only at such times is it possible to achieve a big trend. Trading in a fluctuation range? No, I won't touch it because it's too exhausting and doesn't yield big profits.
4. Focus on ambush. I generally don't take the initiative to attack but wait for the market to make the first move. The market's first step often reveals its intentions, and at this moment, going with the flow can yield twice the result with half the effort.
5. Never take risks. The cost of taking risks in trading is too high, and I won't easily use heavy positions. My principle is to focus on defense, waiting for the market to show flaws before taking action, so that I can minimize risks.
6. Stay steady in unfavorable periods. Unfavorable periods are something every trader experiences, long enough to make one doubt life. The key at this time is to maintain consistent operations and not let consecutive losses disrupt your rhythm. If you can persist, you will wait for the next favorable period.
7. Use mechanical operations instead of subjective trading. I never trust my emotions and intuition; once I have a system planned out, I must strictly adhere to it and never engage in extra operations or adjustments.
I constantly remind myself to clarify before every operation: Will this step get me swept away by the market?
Only by doing these can you truly stand firm and seize your share of money from the market's big boss. And most importantly, no matter how the market fluctuates, you cannot lose your mindset.