Friends, the market finally shows some improvement today, with BTC returning to 68000 and ETH also standing above 2100. But to be honest, seeing the fear and greed index still hovering in single digits and ETF funds continuously flowing out, I feel quite uneasy.
Having been in this market for so many years, from 2019 until now, I have seen too many people come and go. Today I want to share a few heartfelt words with everyone, it's not some profound theory, but rather the experiences I've gained through hard-earned money over the years.
First, when money is tight, don’t rush to make moves.
I have seen too many people with only a few thousand or tens of thousands in their accounts, staring at the market every day, eager to catch every fluctuation. What’s the result? The fees eat up more than half, and their mindset collapses, leading to a decreasing principal. Small funds need multiples, not frequency. Finding one or two opportunities a year to double your money is much easier than earning 10% every month.
Second, the cognition is not in place; practice on a demo account first.
This may not sound pleasant, but the fact is this. If your understanding of the market is still at the stage of looking at K-lines and guessing rises and falls, don't rush into the real market. Every mistake in the real market is real money tuition. I once blew up my account, and that feeling still haunts me.
Third, when good news comes out, it is often a selling point.
There is a very counterintuitive rule in this market—good news often leads to bad outcomes. When a project announces a significant partnership or a token is set to list on a major exchange, it may rise before the news breaks, but once the announcement is made, it starts to fall instead. Why? Because smart money has already positioned itself and is just waiting to cash out once the news is out.
Fourth, before and after holidays, reduce your positions.
Especially in times of geopolitical tension like now, liquidity can vanish just like that. Look at how the market immediately rebounded when the situation in the Middle East eased recently. But what about before? The funds were all on the sidelines. This kind of risk at critical junctures cannot be predicted by technical analysis; it can only be managed through position management.
Fifth, medium to long-term investing is not about holding onto positions stubbornly.
Many people think that medium to long-term investing means buying and then forgetting the password. Wrong. The core of medium to long-term investing is rhythm management—if it has risen a lot, reduce a bit; if it has fallen a lot, increase a bit. Keep the funds liquid while reducing drawdowns. My own approach is to keep the core position unchanged and use a portion of the funds for swing trading.
Sixth, only trade actively in the short term.
For those with low trading volume and low volatility, don't touch them even if the fundamentals are good. Short-term trading requires efficiency and liquidity. If a coin has only a few million in trading volume in a day, it's easy to get in but hard to get out; even a slightly larger order can smash the price.
Seventh, there are two types of downturns, and the opportunities are different.
Slowly drifting down, rebounds are often weak and take a long time. This type of market is the hardest to trade and is like boiling a frog in warm water. A sharp drop, on the other hand, often leads to a quick rebound. The key is to clearly discern what the current rhythm is.
Eighth, admit when you're wrong; don't stubbornly hold on.
Stop-loss is not failure; it is about saving your life. I have seen too many people go from shallow losses to deep losses, finally cutting losses at the lowest point. As long as the principal is still there, there will always be opportunities. Once the principal is gone, no matter how good the market is, it has nothing to do with you.
Ninth, short-term trading should have its own observation dimensions.
Some people look at daily charts, some look at 4-hour charts; I prefer to look at smaller time frames. It's not that smaller time frames are always accurate, but they allow for clearer observation of the traces of fund inflows and outflows. Finding a suitable observation window for yourself is better than blindly following the crowd.
Tenth, it's not about having many methods, but about being able to execute them.
There are countless strategies on the market. Today you learn this, tomorrow you switch to that, but in the end, none of them are used well. Find one or two that suit you, refine them repeatedly, and form muscle memory. Repeating simple tasks makes you an expert.
Ultimately, this market is not about who is smarter, but who can survive longer. The information gap has long been leveled; now it's about execution, mindset, and discipline.
Looking at today's market rebound, many people are getting restless again. What I want to say is, don't rush to chase. First, understand these basic principles clearly and prepare your trading plan well. Slow is fast; this market always rewards those who are patient.
BTCETH $SOL Although it has risen today, overall sentiment is still at a freezing point. At such times, it is actually the best opportunity to test your trading system.
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