Recently, market sentiment has been highly uniform. Most investors are placing one-sided bets on the Fed raising rates, viewing it as a once-in-a-millennium opportunity to get rich. They pile in heavily, follow the trend, and take aggressive positions.
But to Yiming, those sensitive points where the market’s consensus expectation is extremely strong are often not opportunity windows, but the high-risk peak period for mass liquidations.
In the trading market, the biggest risk has never been price fluctuations—it’s the mindset of complacency.
Liquidations are never a distant, rare case; they’re a recurring trading accident. Most people, before the realization of risk actually lands on them and losses occur to themselves, will only treat liquidations as someone else’s story—hearing it with one ear and letting it out the other, with no sense of reverence. It’s precisely this complacent attitude that has pulled countless investors deep into the quagmire of losses.
The more frenzied the market is and the more everyone is betting, the more you need to stay calm, do a thorough review, and check the risks in your positions. Share three core dimensions to help everyone verify whether their current positions are compliant and safe:
I. Give up subjective daydreaming and clarify the core logic behind entries
Trading hates starting positions based on feelings. First, you must accurately define your trading timeframe: are you trading short-term swings, or long-term trends?
If it’s a short-term trade, you must clearly define your entry rationale: is it a technical signal, a structural breakout, or just pure follow-the-news and random entry? Without objective reasons, even if you bet on the right direction, it’s hard to hold onto profits and ride the full move. With even a small fluctuation, people panic and exit—this is the core reason why most people can call the market correctly but still don’t make money.
If it’s trend trading, you must deeply study the historical规律 of the underlying asset, review the bull/bear cycles, and clearly judge which stage, position, and trend strength the market is in right now. If you don’t even know what market you’re in, then all long/short decisions are essentially blind gambling.
The core of trading is objective forecasting and careful weighing—not subjective guesses or off-the-cuff judgments. In trading, there’s no right or wrong between long and short; the biggest mistake is blindly following the crowd or trading against logic.
II. Strictly adhere to position and risk control—build the core bottom line of trading
Traders who understand all know this: position management and risk-control discipline are the first rule for every trading expert.
The market never lacks myths of short-term enormous profits—there are plenty of speculators who double or even multiply in a day. But when you look at the long run, very few traders can consistently generate annualized profits and keep surviving.
Most people ultimately lose money, get liquidated, and are eliminated by the market. The key difference is never the ability to judge the market—it’s that they lose because they don’t know how to control positions or understand risk management. Aggressive heavy positions, no stop-loss, and no risk control—no matter how many times you’re profitable, one extreme market move is enough to wipe out all your gains.
III. Select the right trading tools to match your own trading system
Same market movement, same principal size, and same risk tolerance—choose different trading tools, and the final profit and loss outcomes can be wildly different.
Spot, futures, and options have completely different return structures, risk characteristics, and volatility behaviors. If you don’t understand a tool’s traits and blindly follow others, you only end up unnecessarily magnifying trading risk and missing out on high-quality profit opportunities. Choose the right tool and fit it to your system so you can achieve stable returns within controllable risk.
The ultimate profit logic of trading has never been betting on short-term market moves, but rather long-termism + trends reign supreme + sound risk management.
YiMing focuses deeply on the crypto market, specializing in options trend trading, refusing short-term speculation and battles of chance, and staying committed to practical implementation. Continuously share real trading experience and hands-on techniques.
Follow me, get rid of an impulsive trading mindset, avoid the market’s traps, take fewer detours, and move forward steadily. Want to observe real-time options trading records? Join the conversation on Binance!
Binance chat ID: jct225