I've been holding this in for a long time.
In 2020, during that market cycle, you all know. I invested my entire fortune into a now quite mainstream public chain project (won't name it), almost at the lowest point. At that time, I watched my account every day, feeling like the numbers weren't jumping, but fireworks were going off in my heart. At the peak, I calculated that I could buy the building in my hometown.
Result? I haven't sold a single coin.
I watched it rise, and then I watched it slide down all the way. The numbers in my account shrank dramatically, and that feeling wasn't just heartache; it felt like my heart was being squeezed, making it hard to breathe. In the end, the vast majority of the unrealized gains vanished into thin air.
During those days, I didn't see anyone. I just stared at the screen, line by line, thinking about each transaction. I stripped myself bare and faced that greedy and foolish self. It was during those days that I truly understood some things, which later became my rules for survival.
First, think about how to exit as soon as you enter the market, and close positions in batches.
Don't fantasize about 'I will run when it rises to a certain level.' When you really get to that position, you will only think 'it can go higher.' Now, before buying, the script is already written.
For example, I will divide the position into several parts. When the price reaches the first target, I will take out a portion first to ensure the principal is secure. When it reaches the second target, I will take out another part, which is stable profit. The rest is just a bonus; I will set a trailing stop to let it fly by itself, but once it falls back from the high point by a certain preset margin, it will automatically liquidate.
I don't eat the whole fish; I test the head, and the tail is dangerous. I only bite down hard on the thickest part in the middle. I don't seek to sell at the very peak, but I want the big piece of the main upward wave, without leaving any behind.
Second, bottom line thinking; stopping losses is my 'fuse.'
This is for survival, not for bargaining. I will set an absolute bottom line for myself; for example, if the principal loss reaches a very small margin (like around 5%), I must exit unconditionally. Don't tell me to 'wait and see,' and don't believe in 'immediate rebounds.'
Once the market is not right, human emotions are the biggest traitor. Panic, luck, stubbornness, each can cost you your life. My method is to set conditional orders in advance and let the machine execute this 'cutting position' action. The buffer space I leave for myself is just to cope with those extreme, instantaneous fluctuations, but it absolutely does not change the core discipline of 'must stop loss.'
Third, conquer your inner demons and admit that you cannot buy at the lowest or sell at the highest.
The root of most people's losses is this obsession. When it rises, they think it can rise further; when it falls, they think it will rebound immediately. The result is going up and down in an elevator, even going from profit to deep loss.
I later completely understood: You cannot earn all the money in the market. The most beautiful fish tails and the hardest fish heads are actively left for others. I only take what I can understand and grasp within my system. It looks conservative and gives up the fantasy of becoming rich quickly, but my account has stabilized instead; this year, the return curve looks reassuring to me.
After eight years, I have seen too much in this market. There are many shooting stars but very few fixed stars. Those who can stay at this table are not necessarily the smartest or the best at seizing opportunities, but often those who understand when to stop and when to admit mistakes.
The wealth on paper is all illusory. Only the cash that is actually taken out and put in your pocket is yours.
If the detours of these years can give you some inspiration, don't just focus on the ups and downs; spend more effort to establish your own trading discipline. Then these things won't be said in vain.
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