Discipline and patience are more precious than high throws and low catches.
Last summer, I met Old Zhou at an offline salon. He was wearing a faded checkered shirt, his eyes filled with red bloodshot veins, and he looked completely drained of energy. This civil engineer who had worked for eight years, on a whim, rushed into the cryptocurrency market with the project funds of more than 30 people in his team, and in less than three months, lost 820,000 down to just a few dollars.
I still remember the way he stared blankly at his phone screen, repeatedly mumbling, 'The workers are waiting for their salaries, and the mortgage at home has not been paid off...'. At that time, he was just a step away from a breakdown.
Now, a year has passed, and Old Zhou has not only filled the hole he initially had but has also accumulated 1.44 million in assets. Last week he came to me, handed me a box of tea from his hometown, and had a rare calm expression on his face: 'Now I can finally sleep soundly.'
This is not just a story about turning things around; it is also a process of cognitive enhancement and discipline reconstruction. As someone who has been in this industry for many years, I want to share some practical insights.
1. Holding your position is holding your lifeline
Old Zhou's first liquidation typically exposed the problems of most beginners—full-position trading with no room to spare.
In such a high-volatility market as cryptocurrency, any blind full-position investment is gambling. Among the successful investors I've encountered, not one has achieved stable profits through frequent full-position operations.
My iron rule is: a single trade should not exceed 20% of total funds. Even in the most certain market conditions, one must leave enough 'ammunition' to deal with unexpected situations. During the volatility in March this year, it was precisely because we insisted on entering the market in portions that we had the ability to add positions at low levels during the pullback and ultimately achieved profits.
More importantly, I always adhere to the stop-loss discipline. Once losses reach the preset threshold, I decisively exit. This is not giving up, but preserving strength. The cryptocurrency space is never short of opportunities; what is lacking is capital.
2. Trends are your friends; do not go against the trend
Old Zhou initially liked 'guessing tops and bottoms', always trying to buy at the lowest point and sell at the highest. The result was often buying halfway up the mountain and selling at the foot. This is a common problem for most people—trying to beat the market instead of following it.
In my view, identifying and following trends is more important than predicting the market. When the market shows a clear trend, the wisest approach is to go with the flow. During the rising market in May this year, we identified multiple indicators confirming the upward trend through analysis and decisively followed, achieving considerable gains.
True trends do not end in a day; they will always give you opportunities to get on board. Blindly chasing highs and cutting losses is not as good as patiently waiting for the trend to establish before acting. That is why I always remind myself: It’s better to miss out than to make a mistake.
3. Putting profits in your pocket is the true profit
The cryptocurrency space is not short of stories of overnight wealth, but more so cases of wealth coming and going quickly. Being able to hold onto profits is the true ability.
The principle I adhere to is: regularly withdraw a portion of profits and convert it into relatively stable assets. This not only locks in gains but also avoids the embarrassment of 'paper wealth'.
For beginners, the worst fear is to initially make money due to good luck, then mistakenly think it is their ability, leading to increased investment and ultimately ending in losses. True investing is a slow and steady process, not an overnight fortune.
In my view, the key to profitability is not how much you make, but how much you keep. After each successful trade, withdraw a portion of the profits; this not only gives a sense of accomplishment but also builds confidence for subsequent operations.
4. Keep learning and build your own cognitive system
The biggest feature of the cryptocurrency space is its rapid change; new concepts and new projects emerge endlessly. Without a continuous learning attitude, one will soon be eliminated by the market.
But what I mean by learning is not blindly following various 'gods' calling trades, but establishing your own analysis framework and investment logic. Spending time every day studying market dynamics, technological advancements, and regulatory policies is more valuable than staring at price fluctuations all day.
At the same time, one must recognize their risk tolerance. Not everyone can adapt to the high volatility of the cryptocurrency space. Finding an investment method and pace that suits oneself is much more important than copying others' successful experiences.
5. Stay calm; the market will always reward rational people
In the cryptocurrency space, emotional management is often more important than technical analysis. Greed and fear are the greatest enemies of investors.
Maintaining rationality during market euphoria and staying calm during market panic—this is easier said than done. But it is this anti-human trait that distinguishes ordinary investors from mature ones.
I have seen too many people overly optimistic when the market is rising and overly pessimistic when it is falling, resulting in always chasing highs and cutting losses at lows. A true investor should be greedy when others are fearful and fearful when others are greedy.
Old Zhou's successful turnaround is not only because he mastered certain skills but, more importantly, he reshaped his trading mindset and discipline. This is also the inner skill that I believe everyone who wants to survive long-term in the cryptocurrency space must cultivate.
Today's cryptocurrency space is no longer the wild land of the past. The entry of institutional investors and the clarification of regulatory policies indicate that this industry is maturing. For ordinary investors, this means more opportunities, but it also requires a more professional attitude to face.
The cryptocurrency space indeed offers the possibility of financial freedom, but this path is not a shortcut. It requires you to constantly learn, adjust, and enhance your cognition. Wealth will ultimately find people whose cognition matches it; this is an eternal rule of the market.
If you are exploring in the cryptocurrency space, it might be good to pause and think: Is my investment system complete? Is my risk control in place? Is my mindset mature enough? Understanding these questions is more important than blindly chasing market hotspots.
What do you think? Feel free to share your investment insights and experiences in the comments. Follow Xiang Ge to learn more about first-hand information and cryptocurrency knowledge at precise points, becoming your guide in the cryptocurrency space; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
