Source: Talking about Li, Talking about Outside DAO
There are many ways to make money; aside from luck, most are about monetizing cognition, so there is no good or bad method.
— — — — Veteran (group partner)
Recently, through messages from partners in the background, I can feel that many people have just entered this field and are also experiencing a bull market for the first time.
Before giving specific advice, let’s think about a few questions together:
What brought you into this circle?
What is your current work or living situation?
What are your future efforts and goals?
What are your expectations for gains and losses?
Whether in the capital market or in work and life, we are always in a constantly changing large environment. We cannot change the cyclicality of the large environment, but we can find a relatively balanced strategy within it.
1. If you are experiencing a bull market for the first time, treat trading activities as a side business.
A bull market can easily create the illusion that "making money is too easy." If you currently have a stable job and income, trading in the crypto market can be a way to broaden your skills. Do not question or give up your current job status just because you made some quick money temporarily. Do not stay in place looking; seek while moving forward.
A bull market is temporary; long waits and patience in layout are the norms of trading. While doing well in your main job, improve your understanding of your side business, calm down to feel a complete market cycle, trade with small amounts, from doubting the market, to understanding it, to participating in it, this is not something that can be understood overnight.
Only when your side business has enough strength to support your life can you consider turning your side hustle into your main source of income, or even pursue the things you truly yearn for.
2. There are ways to play with both small and large amounts of capital.
If you do not participate in trading, you cannot understand the market. If you go all in, you are easily manipulated by the market.
Things that are easily accessible in life are often also easy to lose again. Only by understanding the rules can you utilize them. Anyone entering the capital market should first understand before monetizing.
Therefore, the second piece of advice for first-time traders is: in the first round of bull market trading, only use funds that you can afford to lose without affecting your normal future life. Because gains are a bonus, losses are a cheap tuition, and being trapped is a low-cost experience in trading. Your life will not become worse because of this; with a stable mindset, your subsequent trading behavior will not distort.
3. Take profit and stop-loss strategies.
A partner in the group once said: Money can be earned endlessly, but it can be lost completely. Do not pursue a win rate of 100%; there is no one with a 100% success rate.
The constantly changing numbers are the floating profits and losses that capital presents to you. Set a selling strategy for yourself and adjust it regularly in conjunction with market trends. The success of trading ultimately depends on people's minds, and failure also comes from the mind. Trading is a continuous experience of inner struggle, tasting both sweetness and bitterness, and is a grand inner practice. Profit leads to loss, water that’s full overflows. Taking profit is stabilization; securing gains is safety.
4. Pay attention to market sentiment and do not be overly optimistic or pessimistic.
Pay attention to market sentiment and do not be overly influenced by optimism or pessimism.
A typical feature of a bull market is emotionality; market sentiment can become very optimistic as prices rise but can also become extremely pessimistic due to short-term pullbacks.
Learn to control your emotions through rational analysis; do not be lured by excessive optimism in the market, nor panic due to short-term price fluctuations.
Focus on fundamental analysis and long-term trends, not just short-term price changes.
5. Record and review your investments.
Record your buy and sell decisions and the reasons behind them. The fast pace of the bull market can easily lead to confusion; regularly reviewing your investment strategies and decisions helps avoid emotional decisions and can help you learn lessons from past decisions.
6. Do not be gullible and get scammed.
You can be tempted, but don't be fooled.
Beware of promises that are "too good to be true," avoid "phishing websites" and malicious links, regularly check your accounts and transaction records, and be aware of common types of scams.
For partners who are just getting into the crypto market, you are here to make money, not to give away your money.