This morning's review left me deeply moved. I had a long discussion with Roy (a trainee from BTB investment research, very skilled, consistently profitable in contracts, with a win rate below 40%, and a profit-loss ratio of 3.64).
We all anticipated this drop in advance. I even drew it during the live stream, with a stop loss at 914 and take profits at 830 and 810. But why didn't I capitalize on it? I heavily shorted at 882, anticipating a drop, which I was very confident about. As a result, Bitcoin fluctuated for 3 days and rose to 906, completely shattering my expectations. Fortunately, I shorted again at 880 and shorted a total of 5 times between 880 and 885.
Yesterday's long position at 856, I placed an order at 825 to add to my position while sleeping. It rebounded to 832, and I closed it at break-even loss because I knew it would drop further.
Trading is a process of cultivating the mind, a struggle of human nature. Techniques and methods can be taught and learned quickly, but only awareness and mindset cannot be taught; one must rely on oneself to comprehend! Having someone guide you can help you understand faster.
Not achieving my goals is due to my own greed and inability to unify knowledge and action. Clearly seeing the path but failing to act; even a slight fluctuation can make you abandon your previous strategies and execution.
Roy said we can all see the foresight accurately but cannot achieve it; we still need to continue to cultivate our minds and understand the way. I agree with him. I have no problem with spot trading; there is still a long way to go with contracts. Contracts are at least ten times harder than spot trading and completely expose human nature, so I always advise everyone not to trade contracts. Even if you can see things very clearly, it is still a challenging process where 'an analysis is as fierce as a tiger, but the operation is a struggle'.
Roy has doubled his profits in a month, which he has maintained for a long time, but recently he has also experienced losses. I haven't had any losses lately, just small profits. I want to change my trading strategy to include averaging down, but he believes this is not advisable. We should stick to the existing system and let the market adapt to it. The system can continuously improve, and averaging down must be avoided. Losses should only be cut, not averaged down. Once you start averaging down, your entry points become arbitrary since you can always average down. I have been meditating on this for a long time and should stick to my own ideas to solidify the trading system.
Losses are normal; one should not fear losses. I primarily trade trends, so I should not focus on small timeframes during fluctuations. I must stick to my risk-reward ratio and trading logic. He and I have both been frequently stopped out and incurred losses, but a single trend can bring in significant profits. This is our trading system. Recently, because of live streaming, my trading system has been affected, and with the fluctuating market, I keep wanting to make profits, which is not right.
Live streaming is only for sharing, not for placing trades or calling trades; everyone is responsible for their own profits and losses. I will stick to my own principles. During the live stream, I always want to help everyone make money, but this kind of thinking is fundamentally wrong. How much others earn has nothing to do with me; I must ensure that I earn more, as I rely on trading for my livelihood. No matter how much others earn, they won't share a penny with me. Live streaming is only for sharing; what others do is irrelevant to me. Of course, if I find issues with students from BTB research, I will definitely intervene or guide them. I worry too much, fearing that others will lose money, which distracts me from focusing on trading.