Lessons learned with real money, I hope you can avoid the detours I have walked.
At three in the morning, the cold light of the screen hits my face, watching the position numbers fluctuate violently, palms sweating but not daring to blink—I have had this experience too many times. I remember when I first entered the industry, I lost three months' salary in one night, not because I didn't understand the technology, but because I fell victim to emotional management.
The principles I want to share today are not from textbooks, but from the experience I bought with real money. In this market, living longer is more important than making quick profits.
1. The mentality of taking chances is the starting point of losses.
When I first entered the market, I always thought 'just wait a little longer, maybe it will bounce back.' As a result, small losses turned into big losses, making it difficult to close.
The market never gives you the chance to take a chance; it only punishes those who do not follow the rules. Now my principle is: plan each step in advance, set the stop-loss point and execute it resolutely without hesitation.
2. Long-term is gold, but don’t turn into 'long-term entrapment.'
My belief in Bitcoin allowed me to hold some positions during the last bull market, but I also mistakenly held onto some altcoins destined to go to zero for too long.
True long-term investment is about being patient with assets that have real value, not stubbornly clinging to losing projects. The distinction is: are you investing in the future or just your own stubbornness?
3. Swing trading is an art.
I was once obsessed with capturing every fluctuation, resulting in mental and physical exhaustion. Later, I understood that swing trading should only be done when I can comprehend it.
Big data shows that most people really need to trade for less than a month in a year. At other times, staying put is often the smartest choice.
4. Never think about selling at the highest point.
I once couldn't bear to sell a cryptocurrency after it rose by 300%, dreaming that it could double again, only to see profits evaporate by more than half. Later, I learned to take profits in batches, leaving the tail for others to eat.
The market does not lack opportunities; what is lacking is the capital that remains in the market.
5. Frequent trading is slow suicide.
There was a time when I traded dozens of times a day, resulting in transaction fees exceeding profits. Research shows that 98% of people lose money because they pursue quick money through frequent trading.
Now I only make a few key trades each year, spending the rest of the time learning and waiting.
6. Mindset determines gains and losses.
My biggest transformation is from 'predicting the market' to 'managing myself.' Trading is essentially a battle of mindsets; technical analysis is just a tool.
When your emotions fluctuate, the best choice is to leave the screen and take a break.
7. The market is born from despair.
I remember at the end of 2022, when the market was filled with pessimism, I started dollar-cost averaging into Bitcoin. Later, it proved to be the best entry point in the past two years.
Extreme emotions are often contrary indicators: when others are greedy, I am fearful; when others are fearful, I am greedy.
8. Greed and fear are both enemies.
I have seen people leverage at the peak of a bull market out of greed, and I have also seen people cut losses at the bottom of a bear market out of fear. Controlling emotions is not about eliminating emotions, but about not allowing emotions to dominate decision-making.
9. Cash is also a position.
When the market crashed, I was grateful that I always kept some cash. Opportunities come from drops, but only those with cash on hand can seize the opportunity.
10. The triple realm of trading.
I have summarized my trading philosophy: have confidence before buying, patience while holding, and determination when selling. The three links are interlinked and indispensable.
11. Indicators are tools, not divine orders.
I used to be obsessed with various technical indicators, only to find that many indicators become ineffective in the crypto space very quickly. Now I focus more on on-chain data and the movements of big players because 'the truly valuable information is all on-chain.'
12. Stop-loss is insurance, not a cost.
A trade without a stop-loss many years ago caused my account to shrink by 60%. Since then, I understood: stop-loss is not admitting fault, but leaving a ticket for the next opportunity.
13. Crowd emotions are contrary indicators.
When everyone on social media is shouting 'the bull market is here,' the risks often outweigh the opportunities. I have learned to quietly build positions when no one is paying attention and gradually exit when the crowds are noisy.
14. From looking at prices to looking at trends.
Novices only look at prices, veterans look at trading volumes, and experts look at trends. I continuously elevate my cognitive dimension: price is the surface, trend is the essence, and behind it is human nature.
In the crypto world, one day is like ten years in the human world. This market will not pity the weak; it will only reward those who are capable of learning and who have discipline.
I hope my experiences can help you avoid detours. Remember, staying alive is the key to seeing the next bull market. Follow Ake for more first-hand information and accurate insights into the crypto world, becoming your navigation in the crypto space; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
