Admitting to being foolish actually allowed me to lose less and earn more in the cryptocurrency market.
I remember when I first entered the crypto world, I thought I was really smart. I studied candlestick charts and technical indicators every day, thinking I could find the holy grail, but I was repeatedly slapped in the face by the market. The worst time, I stubbornly held on for three days and nights, and in the end, my principal shrank by 80%, and I was about to collapse.
Later, I completely understood: in a place full of smart people, being a 'fool' who admits to being foolish can actually help one live longer. Today, I want to share with you my 'fool's trading rules', which aren't any profound theories, but rather some simple methods to lose less money in the crypto world.
One, why must one be a "fool"?
I used to think the market was a piggy bank, and as long as I was smart enough, I could pull money out of it. The result was that the more I traded, the more I lost, and I was so anxious that I couldn't sleep at night.
In the cryptocurrency space, the game of betting on fools is too common. Some people are willing to pay high prices for projects regardless of their real value, simply because they believe there will be an even bigger fool to take over. However, I’ve found that when I admit to being a "fool," I become more clear-headed:
Complex technical analysis? If I don’t understand it, I simply won’t look.
Are there many opportunities every day? I only do one or two that I can understand.
Big shots calling trades? I'd rather miss out when others are crazy.
Bill Gates once said that cryptocurrency projects are scams based on the "betting on fools theory." But I want to say that if you admit you are foolish, you won’t become the last fool.
Two, my three "fool's rules"
1. Treat yourself as a fool; this is the core mindset.
Now when I enter the market, I assume I will be wrong, so I set my stop-loss very decisively. Once the market proves my judgment wrong, I immediately close my position and exit, never stubbornly holding on.
The benefit of doing this is that it won’t turn a small loss into a big hole. Occasionally getting it right doesn’t make me feel like I’m competent; it’s more about luck, and I just silently rejoice.
The cryptocurrency market is highly volatile, with 24-hour trading, which easily leads to decision fatigue and psychological exhaustion. Admitting I am foolish means I don’t have to stare at the screen all day, reducing a lot of unnecessary anxiety.
2. If you can win, fight to the death.
Since I am a "fool," it’s rare for me to get it right even once a year, so if I catch an opportunity, I must let the profits run.
In the past, I had a habit of rushing to take profits as soon as I saw gains, which caused me to miss out on bigger market movements. Now I understand that it’s rare for fools to get it right once, so I must make the most of it. However, this doesn’t mean blindly chasing highs but rather holding profitable positions strategically.
3. If you can't win, run away quickly.
For someone like me who often makes mistakes, losing is very normal. If I don't run, am I supposed to wait to get "trapped"? I have a family to support and cannot lose all my capital due to a single mistake.
"As long as the green mountains remain, one need not worry about firewood; as long as the signs are not right, I run faster than anyone else and will never drag my feet. The cryptocurrency market's crashes are epic, such as last year's Bitcoin drop below $18,000, which left many people impoverished overnight.
Three, why is this way of thinking effective?
The biggest psychological traps in the cryptocurrency world are FOMO (fear of missing out) and greed. When I admit to myself that I am foolish, these emotions diminish.
I no longer pursue seizing every opportunity but patiently wait for the right time for myself. As Jesse Livermore said, "Money is made by sitting, not by trading."
Moreover, the overall structure of the cryptocurrency market sometimes does resemble a pyramid scheme, where people in the primary market earn money from those in the secondary market, and even worthless coins can be hyped up. Admitting I am foolish means I won’t be easily swayed by such gimmicks.
My "fool's theory" may not align with mainstream views, but it has indeed helped me establish a foothold in the cryptocurrency market. Now I can sleep soundly, and trading has become easy and simple.
Of course, this is just my personal approach and may not be suitable for everyone. The cryptocurrency market is risky, and investments should be made cautiously. The Chinese government has also explicitly banned cryptocurrency trading activities, and everyone must abide by local laws and regulations.
If you are also struggling in the market, you might as well try this "fool's mindset"—admitting you don’t understand the market may actually help you find the path that truly suits you. At the very least, it can help you avoid becoming the last fool in the game of betting on fools.
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