In 2012, I came to Shenzhen with a yearning for the future. In early 2015, by chance, I stumbled into the cryptocurrency world. At that time, I was both excited and anxious, not realizing that this step would lead to a huge change in the trajectory of my life.

Now, I have two apartments and two cars in Changsha, one Land Rover and one Mercedes-Benz. I can spend 100,000 each month without any pressure, and most of my other assets are in exchanges. However, trading is not as glamorous as the outside world imagines; it is actually an extremely tedious task. After a long time in this, I have long passed the stage of being thrilled by some fluctuations.

Trading daily: the lesser-known side

Staying up late has become a common occurrence

Staying up late is simply not considered staying up late for our group; it's just a part of daily life. So you often see so-called genius traders looking old ten years younger at a young age due to their bulging bellies. Fortunately, I still pay great attention to my appearance, after all, I make a living off my looks, haha~

Not as carefree as imagined

It's not as you imagine with daily indulgence; more often, it's just a casual coping state. Even when going out to have fun, I cannot fully get into the state, a state of anxiety urges me not to stop. Because there are too many people who trust us, every trust is actually a kind of pressure for us, and pressure drives us to become better.

Every day is not about feasting and entertaining, but about endless market watching, checking news, and summarizing reflections; at least that's how it is for me. The messages on my phone are endless.

Pressure follows like a shadow

Speaking of the pressure in trading, it truly follows like a shadow. In the beginning, I thought about how to solve the pressure, but over time, I realized I could only continuously enhance my ability to withstand pressure. Some people ask why I always watch the market? Because contracts are mainly short-term, so I basically look for suitable opportunities. Then there are responses to various questions from others; I'm still a nice person, haha, and the difference in points is still very large; those who understand know.

My trading principles

Say goodbye to feeling trades, respect market sentiment. Trading based on feelings often deviates from market reality; just like sometimes I feel a certain coin will rise, but the market sentiment leans bearish, and the results are often disappointing. Only by respecting market sentiment can we closely align with market direction.

Strictly set stop-loss levels; the stop-loss level should consider the market and the loss you can bear. This is the key to controlling risk. Once the stop-loss level is reached, one must decisively exit and not harbor any lucky thoughts.

Stick to your original view; if you are wrong, you must pay for it. The views I derive from analysis must be executed firmly. Even if it ultimately proves to be wrong, I must be brave enough to bear the consequences.

Trading is not about who earns more, but about who goes further. Temporary high returns do not mean anything; being able to survive in this market for a long time is the ultimate goal.

Lessons in life taught by trading

From trading, I have seen the meaning of life, learning to examine everything around me from the perspective of volatility and probability, and seeing clearly what I want; this is my greatest gain in trading study and research.

Since I thought I was enlightened, I buckle my seatbelt when driving, I quit smoking, I restrain my arrogance and impatience, I live honestly, love learning, love working, and treat everyone and everything around me kindly. Quitting bad habits comes naturally and effortlessly. I bought a cheap piece of jade and carved 'A modest gentleman is as warm as jade' on it to encourage myself.

I have realized many truths; let me share one: all correct purposes serve to prove one's errors. I humorously validated this. Now, trading asks me to quit trading. Honestly, I suddenly feel that living a life of cheating is meaningless; this way of making money is pointless and will destroy my hope for the future.

I want to temporarily escape my lonely life and do things I love outside of work. I started learning to write with a brush every day, sketching, appreciating famous paintings, playing the electronic piano, listening to music, studying psychology, reading the four books and five classics, smiling and chatting with people when I have the opportunity, inviting people to meals when I have the time, and strolling in the park, looking at trees, mountains, and water. The happiest things have nothing to do with money. I have never wanted to change anything; just being able to see and experience more of this world makes me very happy. Humanity inherits so many interesting and lovely cultures; why would you entrust your whole life to K-lines and remain lonely for a lifetime?

These are the lessons trading has taught me; the true essence of trading is to reflect on one's inner self and see clearly who you are! If you manage to balance your actions, the market will be respectful towards you; if you are greedy, the market will surely leave you dry; if you try to defeat the market, the market will leave you with nowhere to be buried.

"I have failed in my life!" This is the reflection of many successful speculators who were unreachable, committing suicide. Speculation is too fast and too crazy; since the flesh cannot keep up, why not slow down?

When asked what the true essence of trading is, I can only seek one failure. When asked what the true essence of life is, I can only seek one death. Do you think this is pessimistic? Do you think this is arrogant? No! This is a quiet and peaceful attitude towards the game, indifferent to joy or fear.

Unity of knowledge and action in trading

Unity of knowledge and action, as the name implies, means that your thoughts and ideas must align with your actions. This is actually very hard to achieve. I often like to use the phrase 'struggling between thoughts and actions' to describe the contradictions during trading.

If one can persist in this for a long time, it is a breakthrough. Many people analyze the market correctly and accurately, but end up with losses because their actions do not align with their thoughts.

Another situation is when one cannot accurately read the market and their subjective view is very uncertain; it is better not to make a trade in such cases. Why? It's actually simple: when you can't even believe yourself, it's difficult to do things well. Many people start by taking risks or asking others how to operate. This reminds me of a friend's investment saying: 'Taking risks is wrong, while not taking risks is missing out.' This statement is indeed very reasonable, but I countered him at the time; in this market, I would rather miss out than make a mistake.

Therefore, at this time, it is best not to take risks; neither go long nor short. Many people cannot stop themselves; as long as the market is moving, they want to make trades. This problem is quite common. Therefore, the simple principle of 'watching more and doing less' weeds out a group of people. If you keep making trades, there are three types of people who will love you (people from exchanges, people from futures companies, and your brokers). I believe that the more times an investor trades in this market, the shorter their lifespan will be; comparatively, it is detrimental to both parties.

This also includes a situation where one asks for others' opinions to place an order when uncertain. First, one must understand that this order is not based on your subjective consciousness, yet it is still made by you. At this time, you might think, 'Since others are doing this, it should be fine for me to do the same.' This idea can be problematic—it's a world of difference.

Why? First of all, in others' minds, this order is generally planned out for what to do if it goes wrong, or for how to take profit if it goes right. However, in your own concept, there is no strategy at all. Therefore, when encountering unusual circumstances, you start to panic and don't know where to start. Even if it turns out right, do you know when to take profits? In your subconscious, you have no concept of taking profits; only others' concepts of when to close positions exist.

At this time, your mindset and funding differ from others'. Therefore, the strategies you make will be vastly different. Another problem some traders have is they know what their viewpoint is yet still ask others for their opinions on the market. This can lead to the following negative phenomena:

Your views and directions are roughly the same as theirs.

The two people's thoughts are completely inconsistent.

The former is okay; both can be pleased with themselves (but it may also encourage their greed). The latter is troublesome; for example, if others' analyses seem more accurate and comprehensive than one's own, one will start to doubt their own judgment, leading to disorderly thinking.

At this point, making trades completely lacks a broader perspective and will be very limited. Therefore, I personally believe that while discussing the market is indeed necessary, it is important to consider the circumstances. It is best to communicate more about mindset and share past mistakes rather than discussing how to view future markets. I believe that discussing how to view future markets is fundamentally insignificant; who knows what the future market will look like?

Because what we need to do is not predict how accurate the market trends are, but to prepare strategies for when the market is unfavorable to us. When the market is favorable to us, making profits is a natural result. Therefore, if the strategy is in place, analyzing the market doesn’t need to be so stressful and mysterious. I personally believe that blindly predicting the market is an unrealistic behavior.

The key to successful investment

Successful investment is about repeatedly doing simple, correct things. The market is like the primitive forest of Africa; the most important thing is survival. The principles of technical analysis: strive for simplicity, to the point of not needing to use your brain, and do not blindly trust complex technical analysis methods.

Have confidence in the system you set for yourself, rather than relying on personal emotions, biases, or wishful thinking. To surpass and improve it, the system you prepare to use must be tested over time and in practice.

You must have the patience to wait outside for the system to issue operational signals; once the position is established, you must have the same patience to hold without moving until the system issues a reversal signal. You must strictly adhere to the principles and operate according to the signals indicated by the system; only when the market shows a strong trend can you enter. If you judge the trend incorrectly, exit immediately; if your trend analysis is correct, pyramiding in is the way to go. Money is made by 'sitting', not by operating. Only by using objective methods to judge trend reversals can you close positions.

How to pass the boring time of long-term holding is also key to whether one can hold long-term. If necessary, one can use the 'ostrich policy' to avoid the intense emotions that arise during significant market fluctuations.

The risks and returns contained in prices are possibilities, not absolute outcomes. We can use technical tools to judge the probability of such occurrences but cannot say it will definitely happen; this is why we must set stop-losses.

You can only trade based on your perspective of the market. Once a person predicts things, their vanity will manifest, making it difficult to accept anything that deviates from their predictions during trading. However, true wealth is achieved through clever exits, as it allows traders to stop losses and roll profits.

In short, people earn money by discovering themselves, realizing their potential, and aligning with the market's rhythm. When a rebound or consolidation occurs, people begin to hesitate, and trading often becomes frantic, with frequent changes in positions. Losing not only direction but also oneself. This self is the belief in and the trading system!

This kind of confusion ultimately causes traders not to go further. As long as they trade according to signals and act according to rules, they will inadvertently find that trading is not that difficult. Stick to one approach, study it thoroughly, control your mindset, and you will succeed.

Most investors do not realize that only a few days each month can yield significant profits. The rest of the time, if they are not in trouble, they are doing their part. Always remember to keep your account intact, waiting for the big market to arrive.

Trading is like warfare; if you are only 50% certain, don't fight; if you are 70% certain, still do not fight. You must wait until you are 100% certain to strike with full force. However, the situation changes rapidly; when will there ever be 100% certainty? Technical analysis is the behavioral discipline of traders; it is mainly not about prediction. It helps you identify trends and follow them. Proceed when you must, stop when you must. In a strong market, buy points in technical indicators can be accurate, but sell points can be inaccurate; in a weak market, sell points can be accurate, but buy points can be inaccurate. A position 'in line with the trend' can yield substantial profits, so never easily 'abandon ship.' Many temptations may arise during this process, luring you to quickly counter the trend due to small fluctuations. Unless you are familiar with this path and have set stop-loss points, do not enter or exit casually.

People judge based on price fluctuations, but if human emotions fluctuate faster and larger than prices, they lose the most valuable composure. Therefore, it is easy to misjudge trends and more likely to repeatedly overturn their established investment plans, falling into the dilemma of chasing highs and cutting losses.

Secrets to success in the cryptocurrency market

Profit comes from persisting in the trend trades that others have given up, seizing opportunities that others do not want, and doing what others dare not do. Investment can only be abandoned due to lack of persistence, not a complete failure. Trading is the same; initially, you may have a good outlook, but as the market fluctuates, you change your original direction. Originally bearish, but exited and went long due to a slight rise in the market, ultimately delaying the downward trend and incurring losses; such examples are numerous in trading. Any success requires persistence.

Four mindsets that successful traders should have

Do not be arrogant or complacent when making profits: an arrogant person ultimately destroys themselves in their pride. In the process of investment and finance, if someone is proud and complacent because of profits, they will eventually face a day of losses. The reason is that the arrogant and complacent will stop listening to others' opinions and suggestions due to a small achievement. Even if the market changes, they will stubbornly believe in themselves, thinking their decisions are always correct, and will neglect risk prevention, ultimately leading to losses.

Do not rush to recover losses: making profits and losses in trading is a normal phenomenon. After discussing profits, let's talk about losses. Profits can make some people arrogant and complacent, while losses can trigger many people's desire to recover. But recovering losses also depends on timing; if one rushes to recover, they are likely to make irrational decisions. For example, some people eager to recover will bet all their trading capital on a seemingly promising coin. However, the market is inherently unpredictable and uncontrollable. If that coin falls, not only will they fail to recover, but they may incur even greater losses.

Do not be greedy for quick gains: accumulating wealth through trading is a lengthy process. If one is greedy and seeks quick profits during this process, it is basically impossible to achieve wealth growth. Both mentalities lead to a relentless pursuit of profit, causing one to lose reason in the face of high returns. However, high returns mean high risks; blind investment can only lead to failure. Only by pursuing stable wealth growth can one balance risk and profit.

Do not worry about gains and losses: investors who worry about gains and losses often struggle for a long time before investing, fearing their money will incur losses. Once they finally decide to invest, this mentality becomes more apparent. As soon as they see their account balance decrease, they become anxious and irritable. If it decreases too much, they either withdraw their investment or start looking for inside information, hoping to recover quickly, which usually ends in losses. At the same time, if they hear news about platforms running away or withdrawal difficulties, they will worry about the safety of their investments, even if their own platform has no issues, and choose not to invest again. This makes it very difficult to continue on the investment path.

Day trading skills and points to note

Market sentiment and emotion: from the changes in trading volume and open interest, one can analyze the strength of bullish and bearish sentiment. An increased volume without a price drop may indicate a bottoming process, while an increased volume without a price rise may indicate a potential top. The volume requirements during an uptrend are different from those in a downtrend. During an uptrend: a sustained and uniform increase in volume is needed. A consistent volume increase on a 3-minute candlestick chart indicates that the uptrend will continue. If a significant reduction in volume occurs or there is a very large volume spike, the uptrend may end. During a downtrend: as long as there is an increase in volume when breaking certain key levels, the downtrend will continue. If the price stops rising at a certain level while open interest keeps increasing, with buy-sell orders at progressively lower prices, it indicates a potential price drop. Increased positions with stagnant growth are very good shorting opportunities, or increased positions with stagnant declines may rebound easily.

Key levels: draw out pressure, support, trend lines, etc., on the chart. When the price reaches or breaks through these key levels, take action quickly. I use Fibonacci retracement to predict pressure and support.

Trading rules: Only one type of asset can be operated within a certain period. Continuously track the asset until it no longer holds speculative value before abandoning it.

Market observation windows: A one-minute window is for preparing entry and exit timing; a three-minute window is used to monitor the situation after entering; a 30-minute or 60-minute window is used to continuously monitor intraday trend changes.

Operational reminders: Opportunities arise every day; if you are stopped out, do not rush to recover immediately. After a stop-loss, that trade is done; the next trade is a new one, and how much to earn is how much to earn. Do not set the target for the next trade based on previous operations; otherwise, you will incur losses every time.

Make sure to keep records: try to document your feelings and operational details at the time because words do not lie. Only through authentic records and serious reflection can you find direction for your next correct decision.

Never go all in: whether in the cryptocurrency or stock market, truly mature investors will not choose to be fully invested all the time. Because black swan events, those extreme situations, will definitely occur, especially in a highly volatile market like cryptocurrency. This is a seemingly simple truth, but it is very difficult to execute in practice. Of course, you may have various reasons to go all in, such as having little principal or believing that a newly bought asset will rise immediately. Regardless, you will always be reluctant to leave money idle and will have the impulse to invest it at any time. I completely understand this feeling. But reality often harshly teaches us all who go all in. Therefore, I have decided that after the next wave of increases, I will at least leave about 15% of my position empty. I originally wanted to keep more, but I know I might be reluctant, so I will take it slow; after all, cultivation is not achieved in one go. This reserved capital will only be re-invested when the market experiences a drop of about 30%.

A sharp drop is the best test of human nature: a sharp drop is both a mirror and a touchstone for human nature. Just as most people can share joy but find it difficult to share suffering, every sharp drop not only causes prices to plummet but also reveals the truth of human nature. In the past, I helped several strangers earn several times their money; some were grateful and insisted on transferring coins to thank me, while others felt very capable when making profits but immediately shifted the blame onto me when they incurred losses. This recent plummet has especially highlighted these differences. Of course, I am not foolish; after this, I am already clear on how to treat these people.

Always only buy coins that you can hold with peace of mind: Honestly, the reason I didn't panic this time is that over the years, whether buying coins or stocks, I have only bought those assets that I believe I can hold for more than five years without any problem. This has become my amulet for a peaceful sleep. Of course, I must admit that the recent market volatility also tempted me to buy some lesser-known coins; however, because the amount was small, even if they went to zero, I could accept it, so I did not panic too much. I hope everyone can remember and adhere to this principle; this way, you will avoid many troubles and greatly improve your quality of life. Only holding truly quality assets can bring true peace of mind.

Deep insights

The survival rule in the cryptocurrency market is not to pursue short-term profits but to build a stable profit system. The compounding effect is like a snowball; the longer the time, the greater the power. Only by establishing scientific position management and risk control mechanisms can assets continue to appreciate in value amidst market volatility.

In the face of the ever-changing market, we need to establish a dynamic observation system: when Bitcoin breaks through key resistance levels, when mainstream coins show divergence signals, and when the market sentiment index enters extreme ranges, these are important nodes worth paying attention to.

True winners in the cryptocurrency market can harvest profits in bull markets while preserving strength in bear markets.

Understanding trading is a process that is the same; from a 70% loss to a 20% break-even and then to a 10% profit, it is nothing more than focusing without distraction and not being greedy for various profit models; steadfastly adhering to one trading system, over time this system will become your ATM.

If you have a few thousand dollars in capital and want to test the waters in the cryptocurrency market but are afraid of pitfalls; if you have heard of 'dollar-cost averaging into mainstream coins' or 'getting airdrops' but do not know how to operate specifically; if you want to understand 'how to select potential coins' or 'whether to increase or decrease positions when the bull market comes'—feel free to follow me. Tomorrow I will break down the dollar-cost averaging plan, three essential data dimensions to consider when selecting coins, and even the basic script logic for getting airdrops, teaching you how to avoid the pitfalls of 'blind gambling' and find a survival method suitable for yourself in the cryptocurrency market.

I used to stumble around in the dark alone, but now the light is in my hands.

The light is always on; will you follow?