Staring at the zeroed account, I suddenly understood: it is never the market that defeats us, but our inner demons.
"What future can a man without assets talk about?"
Six years ago, that sentence pierced my heart like a thorn. Every time I saw that pitiful five-digit balance in my account, I felt the sting. I secretly vowed to prove myself in the financial market.
In April 2022, LUNA started to plummet from $119. I held a principal of 60,000 and decisively shorted at the $100 position. During those days, the market was like an avalanche, and my account balance surged from 60,000 to 900,000. That night, my hands trembled, and tears blurred my vision—I thought I could finally tear off the label of being 'penniless'.
But the first lesson the crypto world taught me was far more brutal than I imagined. Greed prevented me from taking profits, and instead, I fully invested at the bottom, fantasizing about doubling my gains. In less than 48 hours, LUNA went to zero, and my account was instantly liquidated.
I sat in front of the screen, lacking even the strength to click 'exit.' At that moment, I not only lost money but almost lost all confidence in myself.
1. The night of the liquidation, I turned white-haired overnight.
After that liquidation, I went through a long period of self-doubt. But it was this deep pain that led me to genuinely reflect on the essence of trading.
I realized that in the cryptocurrency market, emotional management is more important than technical analysis. My initial success shorting LUNA made me overly confident, causing me to overlook basic risk management principles. The market will not give you opportunities just because you need to prove yourself; it is always calm and brutal.
I began to examine common psychological traps: FOMO buying high when seeing others get rich; unwillingness to cut losses when prices fall, blindly adding to positions; becoming overly optimistic after making profits and ignoring risk signs. These emotional fluctuations are the enemies of traders.
I set three strict rules for myself: no all-in bets, no bottom fishing, no going against the trend. Before each operation, I first think through the worst-case scenario and then decide whether to place the order. I no longer pursue overnight wealth but think about how to survive long-term in this market.
2. My trading philosophy has shifted.
After starting over, I abandoned the mistaken belief that 'more trades equal more profits.' Previously, I was obsessed with staying 'active,' viewing every candlestick as an opportunity, only to end up contributing to exchange fees.
I have learned to focus on niche areas. In the crypto market, there are many ways to make money; your task is to find the one that suits you best and become an expert. I choose to specialize in spot trading of Bitcoin and Ethereum, no longer blindly chasing every altcoin.
I built my own trading plan. Before each trade, I clarify whether it is a long-term hold or a short-term trade, setting profit-taking and stop-loss points. The market punishes traders without plans; trading without a plan is a plan for liquidation.
Position size control has become my top priority. Even with the best trading opportunities, I will not make heavy bets. Based on risk tolerance and market conditions, I set the risk capital ratio for each trade, which has allowed me to survive black swan events.
3. How to survive in the market for the long term.
Risk management is the cornerstone of survival. In the cryptocurrency market, surviving is victory. The most profound lesson I learned is: do you want ten small victories or one big defeat that wipes out your account? The choice seems obvious, but too many people have fallen to greed.
Sell when prices rise to lock in profits. In the last cycle, I reinvested many profits simply because there were stablecoins in my exchange account, and I couldn't resist trading. Now I have learned to take profits and convert some back to fiat to 'lock in' or withdraw to a cold wallet to prevent overtrading.
Avoid trading when tired. I used to stay up late staring at charts, thinking I could seize opportunities this way. But decision fatigue is scarier than sudden market crashes. When tired, the brain takes shortcuts that often lead to wrong decisions. Now, I regard sufficient sleep as an uncompromisable trading rule.
Do not fall in love with your position. The market does not care about your ego; staying humble is the only way to remain in the game. I once inflated after a big win, only to be harshly educated by the market in the next cycle. The market always finds a way to remind you who is in charge when you are most confident.
4. My perspective on the current market.
With the accumulation of experience, I gradually realize the importance of narrative. In the cryptocurrency market, narratives often run ahead of fundamentals. An attractive story can drive asset prices, even if its fundamentals are not outstanding. In the attention economy, studying the community and narrative is as important as studying the project itself.
I place greater emphasis on information discernment. There is a high asymmetry of information on social media, with some people holding more insider knowledge. Following the right people can yield significant 'alpha,' while blindly following the wrong ones can lead to total loss. I have learned to think independently and not to follow the crowd blindly.
I firmly believe that 'not your keys, not your coins.' For long-term holdings of large assets, I will transfer them to a hardware wallet where I control the private keys. This is not only safer but also helps avoid impulsive trading.
5. For those still struggling.
If you have also experienced the pain of liquidation, or your account is still hovering around the break-even point, I want to tell you: failure is part of growth. Mistakes made when young cost far less than errors made in middle age. A lesson learned from losing $1,000 is easier to bear than one learned from losing $100,000.
The true goal is not ostentatious victory or overnight wealth, but to continuously avoid mistakes and preserve capital when the odds are in your favor. In the world of cryptocurrency, endurance is the ultimate winning secret.
Remember, what you want is not retirement, but freedom—to wake up every day and do what you want, create value with interesting people, and have time to spend with family and friends. Cryptocurrency may provide financial freedom, but do not forget to set life goals that are more important than money.
Six years have passed, and my account is no longer in the five-digit range, but before placing each order, I still remember that 900,000, that thorn, and that saying, 'No foundation, no future.'
I no longer trade to prove anything. I have established my own trading system, focusing on executing plans and strictly controlling risks. The crypto world always has new stories, but I no longer chase every hot trend.
In this market, living long is more important than living thrillingly.
I hope my experiences can help you avoid some pitfalls. After all, in this zero-sum game, the real opponent is not the market but our own inner demons.
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