I wake up in the morning, wash up, have breakfast, make a cup of tea, smoke a cigarette, and fall into deep thought.
Now it is autumn and winter, and I seldom drink green tea. I drink black tea instead, which warms the stomach and penetrates into the heart with a sweet aftertaste.
Every little thing in life is done in accordance with the trend. Isn’t it the same when thinking about investing in the cryptocurrency world?
In the five years since I entered the circle, the roads I have walked, the things I have experienced, and the people I have come into contact with always come to my mind, the good and the bad, like a brand.
Over the years since I entered the circle, including since I started writing for the official account, I have welcomed so many new people, witnessed so many people go from being full of confidence to unwilling to passively quit the circle, and also witnessed those who have firmly believed and followed along all the way.
Because of different choices, the final results can be vastly different.
Having stayed in the cryptocurrency world for a long time, from initial ignorance to just entering now, the deeper I learn and understand, the more I feel my own cognitive and ability shortcomings becoming increasingly prominent.
In the blockchain industry, anything can happen — sudden wealth, sudden loss, small losses, and the ongoing losses of being boiled like a frog in warm water, where results obtained by luck at a certain point are mistakenly thought to be due to ability, only to later return both principal and interest back to the market in confusion.
I have also encountered many who adhere to the right path, working hard and consistently profiting in this field, going from heavy debts to turning losses into profits, and then achieving financial freedom.
Back to the point: The reason so many people lose money in the cryptocurrency market is due to relying on news to trade.
There’s nothing wrong with listening to news to trade; however, if you treat it as your sole trading decision without discernment ability, that is a serious mistake.
The human tendency to seek benefits and avoid harm is a weakness we all have, which is easy to understand, just like if we can sit, we won't stand, and if we can lie down, we won't sit.
The cryptocurrency market is an area of information explosion; news can serve as an auxiliary judgment indicator for our trading decisions, increasing our trading success rate.
With so much news every day, no one has the time, energy, or capability to discern it. A common flaw for retail investors regarding certain news is that they can become shortsighted, believing that their understanding is 100% correct.
Because each of us, at different times and stages, has our own cognitive limitations and cognitive cages; this is something we all share, unless one is unwilling to grow and refuses to grow.
A simple example is that we often hear that Grayscale is continually selling Bitcoin and Ethereum, while BlackRock is consistently buying.
These two pieces of news are good and bad; how do you evaluate them? How can they help you make decisions in trading?
Yet you focus on Grayscale selling, but rarely pay attention to the motivations and logic behind their selling, which is due to the approval of the Bitcoin and Ethereum spot ETFs in the US, with previous holdings being converted into the current ETFs; it's just a transfer between hands, and a lot of it is traded directly on-chain, meaning it hasn't been sold off on exchanges.
What we need to pay attention to here is that the information retail investors can see is always what others want you to see.
The core idea of Wang Yangming's heart philosophy is: to investigate things to acquire knowledge, and to unify knowledge and action.
What does it mean? In simple terms, the appearance of any situation can be ever-changing. We need to peel away the layers to seek and explore the essence and logic behind all things. The essence beneath the surface will become clearer and clearer through debate, and after knowing the truth, we should unify knowledge and action to implement it.
Trading is like doing a job; everything requires us to make the right decisions through our own abilities. The result of us making money is a reward for making the correct decisions.
Listening to news to trade cryptocurrencies is essentially laziness; it’s because we are unwilling to improve our understanding and master professional skills through hard work and dedication.
Holding a mindset of taking chances, believing that in a bull market, one can easily make money and wanting shortcuts will lead to results.
The cryptocurrency market is a financial market with over 600 million participants worldwide, and this field has already passed the era of reckless growth and making money by sheer boldness.
Moreover, due to the uniqueness of this field, various scams and ill-intentioned individuals can leave ordinary people defenseless. Therefore, just relying on news without discernment ability will continuously lead to losses.
If you understand and have faith in the future trends and dividends of blockchain, and still want to pursue results in this industry, you must first enhance your own understanding and abilities; there are no shortcuts.
How to relieve worries? Only through self-improvement!
