Today, a new brother added me and immediately asked a particularly classic question:
"Bro, I clearly followed what you said in the article, entering with a small position, why is my capital getting less and less?" To be honest, I was also stunned at first.
Later, after carefully asking about his operational details, I realized this was the most standard retail investor strategy.
Let me break it down for you completely.
He deposited a total of 10000 yuan, equivalent to over 1400 USDT.
As for his entry position? It was indeed light, around 50 USDT per order.
Doesn't that sound reasonable? The issue lies in "how to exit the position."
Let me give you a real example: shorting at 2900, with a stop loss set around 2950,
Take profit? None.
The reason is very realistic: "I’m always watching the market."
What happened as a result? The price rebounded from 2900 to 2920,
He started to feel uncomfortable; by the time it reached over 2930, his mindset completely collapsed, unable to bear it and manually closed the position at a loss.
Not long after he closed, the market plummeted all the way down to 2850.
Do you think this trade is a loss? Isn’t this a terrible operation?
The direction was right, the position wasn’t large, yet in the end, he lost the most dramatically.
The problem has never been with the position, but with mindset and discipline.
Many new traders entering the market, the biggest problem isn't that they can't read the charts, but that they can't hold onto profits,
They can't withstand volatility, leaving everything to emotions.
As soon as the price moves against them, even if it's still within a reasonable fluctuation range, their mindset collapses first.
To say something heart-wrenching: with this kind of operation, no matter how light your position is, your account will definitely bleed slowly.
Not only newcomers, many seasoned traders have lost for years, and the issues are exactly the same.
So I always say one thing: mindset comes first, and skills come later.
Today, I also clarified the methods to him, and going forward, I will guide him for a while,
Not seeking speed, but first getting rid of this "cutting loss instinct."
In the crypto circle, we’re not afraid of you being slow, but rather of you having the right direction, poor execution, and a blown mindset.
If you also operate like this, with this kind of mindset,
Follow me, I’ll provide the strategy, I’ll watch the market, you don’t need to worry about anything,
If you have time, think about why I would enter the market at this position?
Why are the take profit and stop loss levels set this way? If you can't figure it out, come back to chat with me, and I’ll analyze it for you
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