Last week I reviewed with my third batch of students, Xiao Lin. This girl suddenly had tears in her eyes, the warm water in her hand splashed out, and her voice was choked with sobs: 'Sister, I used to think you were 'too conservative', saying you didn't understand 'you have to dare to charge into the wind'. I went all in with leverage, and out of the 400,000 principal, there’s less than 40,000 left…'
I wasn't in a hurry to comfort, but instead handed over a pack of tissues half-jokingly: 'Do you remember when I asked you to take 80,000 to test the waters, and you patted your chest saying, “Master, your perspective is too small”? Now you know that ‘under the wind tunnel, there are all pits’ right?
Xiao Lin slammed the table in regret and stomped her feet: 'At that time, my mind was full of “everyone is making money, if I don’t charge in, I’ll lose”, being left out is a hundred times worse than being trapped! How could I listen to advice!'
Actually, I've heard this too many times - in the crypto market, there are only a few traps for beginners to fall into, and 'FOMO' is definitely the number one 'grim reaper'.
Many beginners have a misconception: they think 'not buying means losing', and they can't sleep while watching the hundredfold coins on the gain list, always fearing to miss the next 'myth'. But it’s precisely this mentality that transforms you from an 'investor' into a 'gambler' - chasing highs and cutting losses, going all in with leverage, frequently changing positions, and in the end, your capital decreases while you wonder, 'Why does it drop as soon as I buy, and rise right after I sell, as if the market is watching me?'
Here’s a core takeaway for everyone: You are not targeted by large funds; it's just that beginners often overestimate the importance of their own actions. The crypto market operates 24/7, with fund sizes comparable to the ocean, while our small positions are like floating weeds in a pond, easily blown away by the wind. What you think is 'strange' is essentially chasing highs at peaks and cutting losses at lows, perfectly hitting your emotional trap.
There’s another heartbreaking truth: The methods to make money in the crypto market are so simple that no one believes them.
I previously shared two real cases with students: A professor from a university’s finance department entered the market with a complex quantitative model, doing line charts and backtesting, and ended up losing 60% in half a year; while an aunt selling fruits in my neighborhood, who didn’t understand candlesticks or technology, focused on mainstream cryptocurrencies, invested regularly every month with set take-profit and stop-loss points, and ended up making a 30% profit after a year.
Where's the difference? It's not about knowledge reserves but mindset and discipline - being able to accept that 'lying down is better than blindly fidgeting' is the introductory lesson to crypto investing.
Here are three essential rules for beginners to remember. If you can't remember them, it’s suggested to write them down and stick them on your screen:
Never go all in with leverage: Leverage is a double-edged sword, and beginners will only accelerate their losses by using it. It is recommended to keep the position within 30% of a bearable loss.
Build positions in batches and set stop losses: Even if you are optimistic about a certain type of asset, don't go all in at once. Buy in 3-5 batches while setting a stop loss line of 15%-20%. If it falls below, exit without hesitation.
Avoid 'watching the market too much': Watching the market for more than 2 hours a day will likely lead to impulsive actions. It’s better to set a fixed time to check the market and do other things during the rest of the time.
Xiao Lin was stunned when she heard this: 'Is it really that simple? No need to stay up all night looking for information or insider news?'
I asked her back: 'Do you really think complex operations can make you money? Or are they just easing your FOMO?' She fell silent instantly.
In fact, how many 'mystical operations' are there in the crypto market? The most common mistake beginners make is to equate 'effort' with 'frequent trading' - just like someone who has never touched a fishing rod thinks they need to keep casting and changing bait to catch fish, not realizing that real experts sit steadily on the shore waiting for fish to bite.
The logic of making money has always been 'the simplest way': choose quality assets, manage risks well, control your hands, and leave the rest to time. Those who shout 'hundredfold coins' and 'insider information' are either the scythes harvesting you or anxious retail investors like you.
In the future, I will continue to break down the beginner's risk control manual, share low-risk positioning techniques, and combine real case studies to teach everyone how to avoid the pitfalls of 'chasing highs and cutting losses'. Follow me, and I will help you turn crypto investing into a 'laying down to earn' job, rather than a 'hard task' that requires staying up all night with anxiety.
If you find it useful, quickly like and save it. Next time you feel impulsive to place an order, take a look; it might save your wallet! You are also welcome to share your pitfalls in the comments, and we can avoid them together to get rich. After all, making money is about having many minds and fewer wrong paths.
