Heart-wrenching reality:
Newcomers all want to make quick money, resulting in:
Day 1: Fantasizing about financial freedom.
From the 2nd day onwards: just want to break even.
Day 30: Starting to doubt life.
Three deadly hurdles every novice must face:
The difficulty of making money in this market is actually beyond your imagination.
1. It not only tests your capital (tuition fee crit), the funds you invest with hope can vanish overnight.
2. The energy consumption of time (staring at the market for 72 consecutive hours → stars in your eyes). The fluctuating curves on the candlestick chart are devouring your energy and hope.
3. Mental purgatory — a strong psychological resilience (Moment of liquidation: heart stops, missing an opportunity: regretting wanting to slap yourself, continuous losses: hands shaking so much you can't hold the mouse, leaving you without the courage to place an order.)
The harsh truth:
The real threshold is not those flashy indicators and strategies, but the blood and tears that come from trading with real money. You must personally experience the red glow of the screen during liquidation, feel the regret of missing the opportunity, and endure the heart-pounding fear after consecutive losses.
The scenes that are never written in these books are the true fuel for growth. Just as swords need to be forged in flames, market profits must also be tempered with tears and losses.
The market specializes in treating:
In greed → Inducing you to heavily leverage and get buried.
In fear → A sharp drop forces you to cut losses and then it rebounds.
Blindly following will make you chase high prices and become a big leek.
Those who can truly make money are those who have developed the ability to go against human nature through countless scenes of collapse — when the market is booming, and the group chat is full of shouts of 'going all in', they silently liquidate; when the market plummets, and the news is full of 'crash' headlines, they increase their positions, telling themselves 'this is the bottom'.
They execute trading plans as coldly as a program, using ironclad discipline to gradually turn a weak win rate into a steady stream of profits.
When you can face fluctuations head-on, and the red and green on the screen no longer make your heart race, when others panic and flee like headless flies during a market crash, you can stand in the eye of the storm, calmly pulling the trigger with tears; this inner resilience and calmness are far more precious than any money.
The market always favors those lone wolves who stand firm in tears, but you must first endure the darkest night, refining true courage from countless scenes of 'wanting to give up', so that after the storm passes, you can stand in the sunlight to welcome your own victory.
Survival Rule:
Use 2% position to test mistakes (max loss of 2000 for 100,000 each time).
Set automatic take profit and stop loss (don't trust your own hands).
Establish a trading journal (record the emotions of each operation).
Weekly review (analyze which operations were influenced by emotions).
Path of evolution:
Beginner: Crying from market abuse (90% fall here).
Intermediate: Learn to trade with discipline (6% can achieve this).
Advanced: Unfazed by fluctuations (Ultimate player of 0.9%)
God-level: Harvesting emotions (top of the food chain at 0.1%)
At which level have you collapsed?
What five mindsets must beginners overcome?
'When others are greedy, I am fearful; when others are fearful, I am greedy,' said Buffett. Greed and fear are actually the two most direct and fundamental psychological elements that traders must face. They can fulfill the wealth dreams of novices because greed is the driving force of trading, while fear is the prerequisite for risk awareness. However, they can also destroy the past glory of financial magnates; excessive fear can lead to missed opportunities, while excessive greed can lead to ruin.
Throughout our trading journey, we will experience various ups and downs, accompanied by different emotional states, and all emotional expressions are merely different ratios of two elements.
As an important dimension in the trading system, mindset affects our ability to achieve stable profits and plays a decisive role in whether we can become mature traders.
One, the fear of loss.
This mindset is a common ailment among novice traders; they become extremely anxious with even slight fluctuations, wanting to liquidate at the slightest gain or loss, fearing a reversal in the market. Clearly, there is too much fear and too little greed. To put it more simply, they think too much and understand too little. Generally, as technical knowledge and trading experience increase, this emotion can be quickly overcome. However, if it persists, it may indeed not be suitable for trading.
Two, following the crowd.
This is actually a manifestation of self-doubt, and living in a group makes it easy to be swept up by the emotions of the masses, as it is said, a crowd of sheep. Of course, some traders are overly greedy, unwilling to think and learn for themselves, preferring to hitch a ride and expecting shortcuts. Guidance from some industry veterans can also lead us to misjudge the market, which requires us to analyze; the most important thing is self-reliance and self-confidence.
Three, stubborn and unyielding.
This mindset may be more significant in personality, belonging to those who are unrepentant, who won’t shed tears until they see the coffin. The market has already moved far from their expectations, but they still feel there is a chance for reversal, stubbornly holding onto losing positions, which often ends in significant losses or even liquidation. However, this mindset is also related to market differences and personal trading habits; some traders have relatively rough trading strategies. In my opinion, any strategy without strict capital management is not feasible. Subjective mentality plays a more significant role in trading, often leading to stubbornness and a refusal to cut losses. You must set stop losses; always set stop losses!
Four, regretful impulsiveness.
There are no regret pills for sale in this world, but many people wish they could have them. Many traders sigh and get irritated when they make wrong trades or miss opportunities, even wishing to smash their heads into the ground. Everything that has happened belongs to sunk cost, which we can no longer change. Unsettled emotions will not help us recover losses and will also negatively impact our subsequent trades. Therefore, once feelings of unwillingness arise, stop trading immediately; pouting will only lead to more mistakes.
Five, taking it lightly.
This emotion is often seen in seasoned traders; after all, trading is an art that dances on the edge of a blade, and a moment's carelessness can lead to a stumble. Although seasoned traders are very skilled in trading, or have achieved stable profits, a slight relaxation of emotions or arrogance, overconfidence, can lead to carelessness in judgment and asset management, and suffering significant losses is also quite common. Therefore, you must always maintain a moderately tense emotional state, never be satisfied with current achievements, and always strive to learn and improve.
The road of originality is tough, but I share insights tailored for retail investors every sunny day. I have ten years of market battle experience in digital currency. The integration of knowledge and action seems simple, but it is not easy. Today's sharing aims to illuminate the path for crypto enthusiasts and reduce the pain of exploration.
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