Everyone, I am Qingshan. Recently, the cryptocurrency world is in turmoil, but the most shocking is not the retail investors, but a group of former influential big streamers and high-yield 'god-level' signal providers. They have stopped updating their live streams, and the community is in mourning, with rumors that someone blew up an eight-digit position within a week. This is not a natural disaster, but a thorough 'man-made disaster trading'. Today, Qingshan will take everyone through forensic identification, thoroughly exposing their 'suicidal four methods' that buried tens of millions of funds.
First Method: Contrarian Bottom Fishing - The arrogance of the 'gods' returns to dust
Blood Incident Restoration: In the clear downward channel from BTC's 90,000 to 80,000, these 'gods' continuously shout 'the iron bottom has been reached' and 'a fortune cannot buy', leading fans to heavily leverage long positions to bottom fish.
Qingshan disassembly: This is the classic 'dying from being smart'. They mistakenly equate 'falling a lot' with 'falling to the right place', using subjective imagination to counter objective trends. In a bearish trend, every rebound is for the better decline. Their behavior is akin to reaching out for stones under a waterfall.
Correct solution: Abandon the vanity of 'guessing the bottom'. True trend traders only do 'trend following'.
Second method: Moving stop loss - the traitor of discipline, the prisoner of liquidation.
Blood case restoration: After entering a long position, the price fluctuates in the opposite direction and hits the preset stop loss. At this moment, the 'masters' say on the live broadcast, 'Don't be afraid, the main force is washing the盘, let's adjust the stop loss down', fans imitate and keep removing the stop loss.
Qingshan disassembly: Moving the stop loss is like personally dismantling your only escape hatch. The meaning of a stop loss is 'I was wrong, the market has proven my mistake'. Moving the stop loss is equivalent to saying 'The market is wrong, I have to wait for it to admit its mistake'. The result is that small mistakes lead to big mistakes, ultimately evolving into unbearable huge losses until liquidation.
Correct solution: Set a physical stop loss (platform-triggered order) at the very first moment of opening a position. This stop loss level is calculated based on your position and risk tolerance (for example, single loss should not exceed 2% of the principal), and afterwards, it should never be touched, regarded as a lifeline.
Third method: Lowering the average price - poison-style averaging down, abyss delivery.
Blood case restoration: After the first long position is trapped, in order to 'average down costs', continuously adding margin during the decline, performing proportional or even doubling averaging down.
Qingshan disassembly: This is not self-rescue, it is jumping into the fire pit with a bomb replacing rifle bullets. The essence of 'averaging down' is to continuously add positions in the wrong direction, betting all funds on a judgment that has been disproven by the market. It infinitely amplifies your risk exposure, and once the trend continues, losses will grow exponentially, accelerating death.
Correct solution: Never average down on losing positions. Correct averaging up (pyramiding) only occurs on profitable positions. If the price drops after opening a position, you should think about the stop loss, not how to 'average down'.
Fourth method: Position imbalance - amplifiers of all mistakes.
Blood case restoration: In a highly uncertain market, casually using 50x or 100x leverage, or betting over 50% of funds on one or two directions.
Qingshan disassembly: The first three methods are knife techniques, heavy positions mean handing the knife to the market and stretching your neck. High leverage and heavy positions make the account extremely fragile, unable to withstand any normal market fluctuations. Under immense pressure, traders are bound to lose control of their emotions, triggering the first three mistakes in a chain reaction.
Correct solution: Treat your principal as an army. The troop strength invested in a single battle (trade) should not exceed 5% of the total strength (10% for aggressors). Use leverage that allows you to sleep peacefully (for beginners, starting with spot trading or very low leverage is recommended). Survive, and you can see tomorrow's big market.
Qingshan summary: The rite of passage from 'fans' to 'traders'.
The collective fall of the anchors is a bloody market education: there are no gods in trading, only the respect for rules and iron discipline. Their failures perfectly demonstrate the ultimate cost of all trading taboos.
If you want to grow from a 'wailing fan' to a consistently profitable trader, you must complete the following 'rite of passage':
1. Shift from 'believing in tips' to 'learning systems'.
2. Shift from 'fantasizing about getting rich' to 'calculating risks'.
3. Shift from 'emotion-driven' to 'rule-driven'.
Their story has ended, and your story depends on whether you are willing to change today.
Want to know how to build a simple trend-following system of your own? How to execute discipline like a machine and completely say goodbye to these fatal mistakes?
Today, in Qingshan's live broadcast room, we will not miss each other.
(The principles and case studies described in this article are general trading principles and educational materials, and do not constitute any investment advice. The market has risks, please make independent decisions.)
