The ultimate competition in trading is not about technology, but about mastering the weaknesses of human nature.
Every time this topic is discussed, there are always people who disagree. It's normal; if you haven't experienced a thousand transactions in real scenarios, it's indeed hard to grasp the deeper meaning. You may not feel it now, and I don't blame you; your perception and situation are temporarily limiting your vision.
The insights I'm sharing today may seem like common knowledge to you. But please save them for later; after you've tripped over the pitfalls, lost money, and experienced sleepless nights, revisit this, and you might have an epiphany.
I've seen too many people obsessed with finding 'hundredfold coins'; this is actually the most basic 'speculative mindset.' A step above that is 'pattern thinking,' but what truly allows you to transform from a retail investor into a savvy trader is 'account thinking'—keeping a close eye on the overall account net value, rather than the rise and fall of individual coins.
Pullbacks are killers, not mere interludes.
First, do some basic math: If your account has a 50% drawdown, you need to double it to break even. This is not a numbers game, but a harsh reality. Occasional profits do not count as wins; being able to lock in profits and control drawdowns is the key to transformation.
Why can most people not do it? Because human nature fears missing out but does not fear being trapped. They always feel that 'missing the rise is a loss,' and to avoid missing out, they'd rather get trapped and repeatedly break free from the trap. This is not normal; it's a 'human nature disease.'
Buffett's saying, 'You only know who is swimming naked when the tide goes out,' applies equally in the crypto space. When the market adjusts, does your account drop? One test reveals whether you truly have the skill or are just deceiving yourself.
The killer instinct is what can change your fate.
My method over the past ten years can be summed up in three words: killer instinct. Only by shedding greed can you change your fate.
Where does greed manifest? Every candlestick seems like an opportunity, and every rise makes you want to participate. However, trading more frequently does not equate to making more profit. Frequent trading often lightens your wallet and increases regret.
Experts can calmly give up opportunities that do not belong to them. It's not about forcibly seizing them, but about picking up money—abandoning uncertain opportunities and enduring loneliness while waiting for the 'certain winning signal.'
How specifically to operate?
First, get back the principal.
For early-stage investment projects, once there are significant profits (like doubling), consider quickly taking back the principal. Doing this is not to earn more but to gain the confidence of 'not caring.' After withdrawing the cost, your focus on these coins will naturally decrease, and holding onto profits will alleviate concerns about missing out.
Stop loss and take profit must be resolute.
The most common problem is the failure to set take profit and stop loss levels. Many people end up with unrealized gains at market peaks but never take profits because they did not have a clear plan before purchasing tokens.
Don't sell when prices rise, and don't run when they fall; ultimately, emotions will backfire. Learn to take profits on offensive positions and to cut losses on defensive positions.
Position management is the foundation of survival.
Risk management may sound unsexy, but it is the pillar of successful trading. Most traders focus their attention on entry points, as if they are the Holy Grail, but exit points are where the real magic lies.
Position size, stop loss, and risk-return ratio are the foundations for survival in the cryptocurrency market. Do you want ten small wins or one big loss that wipes out your account? The choice seems obvious, but too many traders overlook these basic principles.
Laozi's wisdom: Reversal is the movement of the Dao.
A saying I have benefited from for many years: Laozi's 'Reversal is the movement of the Dao, the weak are the use of the Dao.' These ten characters once helped me achieve considerable returns on ETH.
The specific usage is very simple: decisively buy strong stocks that show weakness, firmly sell weak stocks that show strength, and increase positions during reversals. This is the practical application of 'Reversal is the movement of the Dao.'
I feel fear when everyone is crazy and greedy when everyone is fearful. This is not a cliché but a truth summarized from bloody lessons.
The final advice.
Investment is not about who earns quickly, but who survives longer. In the crypto world, time is the most expensive chip.
In the long run, those past short-term bursts of energy are insignificant. Those who treat a marathon like a hundred-meter dash ultimately just flash like a meteor.
If you want to make real money, don’t 'grab money'; instead, 'pick up money'—think about 'not losing' before 'making money.' Wait for your 'light' to come before taking action, and when you pick up money, wait for the next time; only then can your account grow steadily.
Whether you can succeed in the crypto space depends on how much you want it. But remember: it's not shameful to change oneself; being content with mediocrity is shameful.
Follow Xiang Ge to learn more firsthand information and cryptocurrency knowledge at precise points, becoming your navigation in the crypto space; learning is your greatest wealth!#巨鲸动向 #ETH走势分析 $ETH
