Friends, I am Qingshan.
When the market is in turmoil and the group is in mourning, you will notice a phenomenon: beginners are asking everywhere, 'Can we buy the dip now?', while those who have truly experienced multiple cycles remain particularly silent. They are not daydreaming, but are focused on doing the following three things. These three things are a thousand times more important than 'buying the dip'.
The first thing: Immediately conduct a 'position stress test'.
The first reaction of experienced traders is not to look at the market, but to check their own accounts. They will conduct a thorough 'position stress test' like doctors performing emergency checks:
1. Calculate the maximum bearable drop: Suppose Bitcoin drops another 15% or 20%, will your positions be liquidated? Which positions will hit the stop loss first?
2. Check liquidity: How much available margin or cash is still in the account? Is it all tied up in 'dead positions'?
3. Make decisions: Based on test results, they will act immediately—either reduce the highest-risk positions or supplement the margin. The goal is to ensure that they can 'survive' in any extreme market conditions, rather than betting on a rebound in the next second.
The second thing: Calmly search for 'evidence of market mispricing'
When everyone is blinded by fear, the experienced traders are calmly looking for the divergence between price and reality, asking, 'Is the market overreacting?'
· They do not look at frightening news in groups but check on-chain data: Are the whale addresses panic selling or quietly accumulating?
· They analyze the futures funding rate: Has it turned extremely negative due to excessive pessimism? (This often indicates a short-term rebound opportunity).
· They observe trading volume: Is the crash accompanied by an increase or decrease in volume? A decline in volume might indicate that selling pressure is about to wane.
What they are looking for is not the 'bottom,' but 'signs that market sentiment is about to change.'
The third thing: Draw a detailed 'future battle map'
This is the most critical step. Experienced traders will never place orders in a panic, but they are already planning for the future.
1. Plan an 'observation zone': They will draw several key price areas based on technical analysis (e.g., Bitcoin's $74,800 - $76,000). These areas have historically formed support or resistance multiple times and are places where stability might occur. They will divide their capital into several parts and only consider gradual entry when clear stop-loss signals appear in these zones, rather than trying to catch the falling knife halfway down.
2. Write an 'action checklist': They will write it out in advance like programming: 'If the price reaches area A and signal B appears (e.g., a specific candlestick pattern), then execute operation C (enter with X% of funds), set the stop loss at position D.' Their trades are triggered by planned conditions, not emotional, impulsive decisions.
Summary by Teacher Qingshan
So, do you understand? When the market is in panic, novices are looking for 'lifebuoys' (bottom fishing), while experienced traders are focused on 'survival,' 'observation,' and 'planning.'
Panic itself is not the risk; losing reason in panic and operating in the wrong way is the real risk. The strength of experienced traders lies not in always buying at the lowest point, but in having a complete system that allows them to remain calm during the market's craziest times and to prepare ample ammunition for the next wave.
Want to learn how to establish this 'panic response system' and 'condition-triggered trading plan'?
Follow Teacher Qingshan's live stream, I will guide you step by step to build it, helping you transform from being 'controlled by market emotions' to 'utilizing market emotions.'