The market is specialized in dealing with all forms of non-compliance; only discipline and understanding are the ways to survive.
I remember when I first entered the cryptocurrency market, my eyes fixated on the dazzling legends of hundredfold coins, my mind filled with fantasies of overnight wealth. It was spring ten years ago, and I had 50,000 yuan of hard-earned capital. Like most newcomers, I believed 'insider information' and poured all my funds into an unknown small coin.
As a result, in less than three months, my account shrank by seventy percent. I couldn't sleep at night, my hair fell out in clumps; that kind of anxiety can only be understood by those who have experienced losses.
This painful lesson doused me with cold water: the cryptocurrency market is never a casino. Those shouting 'hundredfold coins' and 'guaranteed profits' are either scammers or naive newcomers.
Ten years later, I can finally calmly reflect on this experience. The market has taught me a truth with real money: living long is a thousand times more important than making quick profits.
The pitfalls I fell into over the years
During the bear market in 2018, I made a mistake that I still remember vividly. Holding a niche coin that had already dropped 60%, I clung to the fantasy of 'what if it rebounds' and refused to cut losses. Before the Spring Festival, I thought, 'market fluctuations aren't big during holidays,' so I heavily invested for the new year, only to find my account nearly wiped out when the market opened post-holiday.
That day I sat in front of the computer staring at the candlesticks for an entire afternoon, unable to even eat. From then on, I understood one principle: before holidays, no matter how 'stable' the market looks, always trade lightly or even go short overnight. The market loves to strike when people let their guard down.
For a while, I was obsessed with frequent trading, wanting to operate every minute, always thinking that 'the more I operate, the more I earn.' As a result, I paid a lot in fees, but my account kept getting thinner. Later, I realized: there are only one or two truly significant opportunities in the crypto market each year; hitting one correctly is enough.
The transition from losses to stable profits
After realizing where the problem lay, I forced myself to calm down. I practiced with a simulated account for half a year, without the pressure of real money, allowing for unlimited mistakes. Simulated trading hones operational logic, while the mindset with real money can only be refined through practical experience.
But whether it's simulated or real trading, I have one principle: if the direction is wrong, cut losses immediately; never hold on with a 'lucky mentality.' The principal is the spark; as long as the spark remains, there is a chance for recovery.
In technical analysis, I also simplified things. I was once obsessed with various indicators, but later found that the core is just two: the 15-minute candlestick chart + KDJ combination. This simple pairing helped me avoid three major crashes and countless small pullbacks. It's not about having many indicators, but about having precise ones.
My practical experience
When good news lands, don't be greedy—whether it's announcements from exchanges, major collaborations, or favorable policies, as long as the good news is officially confirmed, pull out on the next day's peak and don't think about 'waiting a little longer.' I've seen too many people fall for these three words, missing out on potential profits and ultimately getting stuck at the peak.
For long-term investments, small investors don’t need to learn from institutions to 'hold heavy positions and eat fat in one bite.' Our advantage is flexibility. My approach is to keep at least 30% cash available, choose a few projects I truly understand, and do rolling trades. Reduce positions when it hits the target, and add positions when it hits the bottom, locking in profits while reducing risks.
Experienced veterans understand that exiting during a bull market is often more difficult than selling during a bear market. Many regret 'selling too early,' but later they will be grateful for their rational decision at the time. Setting clear profit-taking points is crucial, such as withdrawing the principal when it doubles and cashing out part of the profits when it triples.
Wisdom through the bull and bear markets
The crypto market has obvious cyclical patterns. We are currently in the third year of this bull market cycle, and Bitcoin has risen several times from its lows. At such times, caution is more necessary because the more bustling the area, the greater the risk.
When the market is rising, investors often fall into the emotion of 'fear of missing out.' If you can't resist re-entering the market after making a profit at a high point, you might be caught off guard by a sudden collapse. Worse, you might find that the taxes on your realized profits exceed the value of your remaining assets.
I firmly believe that you can never earn money beyond your understanding. Those projects and market conditions that you don't understand, even if you occasionally make a profit, will eventually be lost back to reality. The market is always a manifestation of understanding.
Conclusion: The market is always there, and opportunities are always available.
The crypto market has no gods, and no one can predict the market 100%. Even veterans like me, with ten years of experience, occasionally fall into traps. Those who can survive and make money in this market rely on discipline and understanding earned through blood and tears.
Now, I can finally choose the life I want freely. Looking back over the past ten years, the market has been like a stern teacher, educating us with losses and motivating us with rewards.
If you're just starting in this market, remember: don't rush to seek speed and quantity; be steady and make sure to learn to survive before thinking about making money. The market is always there, opportunities are always available; the key is whether you have the capital and ability to seize them when they come.
In this turbulent yet opportunity-filled market, rationality and patience are the most powerful weapons. Follow Xiang Ge to learn more firsthand information and knowledge about the cryptocurrency market, becoming your guide in the crypto sphere; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
