The essence of trading is mindset:
Everyone, remember this: if you miss the market and you feel that Bitcoin has gone up too high, then you think it will fall—so you short it. Everyone, don’t do it that way.
Because if you do, you’ll be extremely miserable. The market teaches you how to be a person—it’s a specialist that deals with every kind of defiance. You’ll face a situation where you not only weren’t on the train and missed the upside, but you’re also trapped and at risk of liquidation. That’s a double blow.
Have you noticed that trading is really about trading the mindset? If you short against the trend, you’ll get carried away. The position gets bigger and bigger, losses get bigger and bigger. By the time the rise truly peaks, your principal is gone, and you no longer have money to keep opening positions—the mindset collapses completely. You should wait. There are many opportunities. If you miss this one, just wait for the next.
This doesn’t mean you can’t short. When is it possible to short? When you have a lot of spot holdings. When the price has risen a lot, at this point you can sell part of your spot holdings or not sell, and open a small short position. This is called hedging, and you have absolutely no psychological pressure. Because when it rises, even if your short position loses money, your large spot holdings make money. Even if you get liquidated, it doesn’t matter. What if it falls? Then the short position makes money. Even if your spot holdings lose money, you can use the profits from the short to bottom-fish and buy more spot. The spot will rise again eventually.
So you have zero pressure and your mindset is extremely calm. Then your trading system will be even more complete.
Everyone, remember this: if you miss the market and you feel that Bitcoin has gone up too high, then you think it will fall—so you short it. Everyone, don’t do it that way.
Because if you do, you’ll be extremely miserable. The market teaches you how to be a person—it’s a specialist that deals with every kind of defiance. You’ll face a situation where you not only weren’t on the train and missed the upside, but you’re also trapped and at risk of liquidation. That’s a double blow.
Have you noticed that trading is really about trading the mindset? If you short against the trend, you’ll get carried away. The position gets bigger and bigger, losses get bigger and bigger. By the time the rise truly peaks, your principal is gone, and you no longer have money to keep opening positions—the mindset collapses completely. You should wait. There are many opportunities. If you miss this one, just wait for the next.
This doesn’t mean you can’t short. When is it possible to short? When you have a lot of spot holdings. When the price has risen a lot, at this point you can sell part of your spot holdings or not sell, and open a small short position. This is called hedging, and you have absolutely no psychological pressure. Because when it rises, even if your short position loses money, your large spot holdings make money. Even if you get liquidated, it doesn’t matter. What if it falls? Then the short position makes money. Even if your spot holdings lose money, you can use the profits from the short to bottom-fish and buy more spot. The spot will rise again eventually.
So you have zero pressure and your mindset is extremely calm. Then your trading system will be even more complete.