I remember when I first started trading cryptocurrencies, I was like many new traders today, obsessed with researching various technical indicators. MACD, RSI, Bollinger Bands... these felt as natural to me as breathing. But ironically, the more I learned, the worse my losses became.
The most painful experience was when I stayed up late watching the market, got overly emotional, and heavily invested in a volatile market, losing two months' worth of profits in three days. That feeling was like someone punched you hard in the chest, leaving you breathless.
Now, I am still not a master of technical analysis, yet I have steadily made 5 times my investment within six months. Today, I will break through this layer of 'window paper' — the key to making money in the crypto world has never been about technology, but rather about emotional management.
01 Why do technical analysis masters still face liquidation?
On the surface, trading is a game of technology and knowledge. But when you truly enter the market, you will find that it is more like an amplifier of human nature.
I am too familiar with Xiaoyu's experience: after opening a position, I stare at the K-line, getting excited and unable to sleep when it rises by 1%, and panicking and sweating when it drops by 2%. Stopping losses feels like cutting flesh; I keep thinking, 'Just wait a bit longer for a rebound,' but the longer I hold on, the more I lose. Regretting missing out on a certain coin, I turn around to chase the high and get stuck.
This mindset is precisely the true portrayal of most retail investors. Investment master Davis once pointed out a harsh fact: 'In fact, most of the money we earn is made in bear markets, only that you didn't realize it at the time.' But why can't most people do it? Because emotions always cut off our rationality at critical moments.
When the market crashes, fear will make you forget all the plans you made earlier; when the market surges, greed will drive you to blindly chase highs. Technical indicators can be learned, but the mindset can only be mastered by oneself.
02 From losing all 30,000 U to stable profits, I realized these three truths
My transformation began with three realizations. These truths seem simple, but I exchanged them for real money.
1. Treat trading as a game, not a battlefield
In battle, losing means it's really over, but losing in a game means you can try again. When I began to view each trade as a level to conquer, profits became rewards and losses became experience points, and my mindset instantly relaxed.
Before, I viewed stopping losses as cutting flesh; now I see it as 'losing health' in a game, calmly accepting this operational mistake and then calmly reviewing the systemic issues, rather than blaming the market for being unfair. This shift in thinking has greatly improved my discipline execution rate.
2. The 'calm three questions' before opening a position
Before I place an order, I force myself to answer three questions:
Is this a system signal? Or am I just emotional?
Is entering the market now in line with my trading rules?
Can I accept the loss of this trade calmly?
As long as one answer is negative, I immediately turn off the computer and go out for a walk. This habit has helped me avoid at least half of my impulsive trades.
3. Accept the uncontrollability of the market
The common mistake we make is always trying to predict market ups and downs. But the truth is, the market is like the sea; we can only surf, not control the waves.
In the past, I always thought about going against the trend, resulting in repeated setbacks. Now I understand that the real wisdom is to 'go with the trend'. When the market shows strong trend characteristics, we enter; if no clear trend can be found, the best choice is to wait and see.
03 How did I cultivate an 'anti-fragile mindset'?
Adjusting the mindset is not about slogans, but about specific methods. These three methods have transformed my trading.
1. Position management is the cornerstone of mindset
I split my funds into three parts, each worth 10,000 U. Each time I open a position, I only use one part, and the big coin does not exceed 10 times, while the altcoin does not exceed 5 times.
The benefit of doing this is: even when facing a spike or making a misjudgment, I only lose one-third of the total funds and will never be knocked out in one hit. Strict position management is the material foundation for a stable mindset.
2. Maintain an appropriate distance from the market
Before, I watched the market for more than 10 hours a day, with emotions fluctuating with the K-line. Now, I only check the market 2-3 times a day and stay away from it most of the time.
The market will not always go up, nor will it always go down. Give the market some time, and give yourself some space. Maintain a moderate level of attention, but do not be distracted by every fluctuation.
3. Insist on the 'buy and leave' mentality
Many investors immediately redeem when they see a decline in returns and panic at the first sign of a pullback. The result is frequent buying and selling, which not only costs a lot of time but also continuously erodes the principal with transaction fees.
Now, once I make an investment decision, I won't get tangled up again. Accepting market fluctuations is normal; it's rare for a product's price chart to go up in a straight line.
04 Surviving in the crypto world is ultimately a psychological game
Having spent a long time in the crypto world, I increasingly agree with a viewpoint: investment success does not rely on IQ, but on the ability to control impulses.
The crypto market is never short of money-making opportunities; what is lacking is the ability to stabilize one's mind amidst temptation and panic. The essence of trading is not how many times you are right, but whether you can survive when you are wrong.
Knowing yourself is more important than knowing the market. Understanding your risk tolerance and investing within your means allows you to enjoy the fun of investing while also mitigating risks to a certain extent.
My experience is that quitting 'emotional trading' is the first hurdle to becoming a successful trader. When you find that your actions in the market are no longer driven by fear or greed, but based on plans and discipline, stable profits are not far away.
I hope my experience can bring you some inspiration. The crypto world is harsh, but also fair—it ultimately rewards those who are patient and disciplined.
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