Discipline is the only protective charm, and emotions are the biggest bloodsuckers.
Last week, another follower complained to me: 'Teacher, I have been trading spot for almost a year, every time I see the trend correctly, I panic and close the position after making 5%. When I'm stuck, I just stubbornly hold on. Last month, I directly lost 30%, and now I don't dare to open a position, what should I do?'
I asked him to review his recent trading records of 'small profits and big losses', and sure enough, the problem became clear - it's not that the skills are lacking, but that emotions ruined the judgment. I shared five sentences with him, and half a month later he sent a message saying 'I suddenly had an epiphany.'
Today I will share these five sentences with everyone; these are lessons I learned at the cost of real money.
First sentence: Lock your emotions first, then open the trading software.
Most people fixate on the candlestick chart as soon as the market opens, with their moods fluctuating with the price. This is not trading at all; it has become slavery to emotions.
My rule is simple: spend 10 minutes every night before bed writing a trading plan. Write clearly in black and white: which asset to trade, what position to enter, where to stop loss if it drops, and where to consider taking profit if it rises. Turn the dilemma of 'to sell or not' into a strict command of 'execute when the time comes'.
For example, if you plan to buy 1 Bitcoin, set your lines in advance: take profit at 15% increase, stop loss at 8% decrease. When the price really reaches these levels, you have to act according to the plan no matter how nervous you get. The plan is the shackles of your emotions.
Second sentence: Beware of the sweet trap of 'small profits should be stopped'.
'First earn a little and then talk' is a typical expression of fear of loss, but this is also why you always miss out on the big trends that follow. Holding onto losing positions is a gamble, hoping the market will give you a chance to break even.
Making small profits is actually more dangerous than losing because it gives you the illusion of 'I am right', causing you to habitually miss out on real big opportunities.
Before opening a position, tell yourself in the mirror: what I want is a trend, not fast food. Using small stop losses to gain big trends is the mindset of a professional trader.
Third sentence: Practice with small positions, large positions can be fatal.
When your mindset is problematic, the worst choice is to increase your position size hoping to recover losses in one go. A large capital will infinitely amplify your emotional fluctuations, leading to more irrational decisions.
To change bad habits, you must start practicing with a 0.5 position size. With such a small position, you won’t feel elated when you win or panicked when you lose. After executing the plan 10 times in a row, consider gradually increasing your position.
I have seen too many traders who, despite having accurate technical analysis, are washed out due to being over-leveraged in normal fluctuations. A good mindset is cultivated through small positions slowly; it is not something you are born with.
Fourth sentence: Trading logs are your best teacher.
Don't get complacent when you make a profit; it might just be luck. Don’t complain when you lose; it might just be normal fluctuations. Spend 5 minutes after each trade writing a review: What did you do right this time? What did you do wrong? How can you improve next time?
Many people think that trading logs are just for recording profits and losses; in fact, their most important function is to identify your emotional patterns: Are you prone to impulsive trades at specific times? Do you panic excessively when you hear bad news?
Only by continuously recording can you discover your emotional patterns and prepare better in advance.
Fifth sentence: Trading is a marathon, not a sprint.
In this market, those who can survive for 5 years or 10 years are not the ones who earn the most each time, but those who understand 'to lose less and earn more'. Don't think about 'getting rich overnight' or 'recovering losses in one go'.
Consistently earning a little every month is far better than 'big ups and downs'. Set reasonable goals for yourself, such as focusing on 'not losing' in the first three months, then 'stable profits'.
Emotions are the enemy of trading, and discipline is the friend of trading. Don’t let emotions ruin your trading journey; use discipline to earn the market's respect.
Starting today, follow these five sentences, and next time when you report back to me, it should be: 'I made a profit according to the plan, and my mindset is very stable.'
I have walked this path for five years; you are not alone. As long as the methods are correct, breaking free from emotions is just around the corner. Follow Xiang Ge to learn more firsthand information and precise points in the crypto circle; becoming your guide in the crypto world, learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
