Someone said the market crashed today.
I opened the charts and took a look—where's the crash? Isn't Bitcoin still around 83,000?
Looking at the 4-hour chart again, it turns out a bearish candle dropped to 81,000 last night, and today's bullish candle has brought it right back up.
Oh, so Bitcoin rising from 57,000—or 60,000, as I've been saying—isn't a trend reversal, and a climb from 57,000 to 87,000 doesn't count as a rally, but a pullback from 87,000 to 83,000 counts as a huge crash?
Just kidding—crypto is always like this. Over the past two years, whenever prices rise a few points, people wonder if a bull market is here; whenever they fall a few points, they start worrying a bear market is coming.
If you don't have a trading system of your own and can't read the market, you'll spend these years chasing rallies and selling dips. By now, you probably have neither positions nor cash left to invest. That's the sad reality for ordinary retail investors.
Financial markets are not only a battlefield for investors, but also an arena where money, politics, and economics clash.
After entering the market, most people are crushed and bled dry by all kinds of traps.
If you don’t understand the rules or know what you can and can’t touch, you might try futures just because you’ve never traded them before, or buy some altcoin because someone said it was great.
If you don’t understand how things work, you’ll think that when prices rise, they’ll keep rising forever, and when they fall, you’ll fear they’ll keep falling.
Without a trading system, you just hold on when prices rise and tough it out when they fall. If you like a particular coin, you go all in.
Just these issues alone are enough to cost you most of your assets and make you squander several bull markets.
For winners, there are plenty more bull markets ahead. But how many bull markets does a loser get? If you can’t afford the losses, you have no choice but to leave the market.
So for ordinary retail investors to succeed on the investment journey, it takes more than just the courage to lose and the fearlessness to risk it all.
Everyone who enters this market is here to make money. Others hear the same tips you hear and read the same news you read.
So what makes you think you’ll be the one who profits? Think carefully about that.
The answer is very practical and simple: become someone who understands the rules, knows how things work, and follows a trading system.
What does it mean to understand how things work and follow a trading system?
Let me give you an example. Someone once asked me, “I’ve been watching your analysis for years. Your firm is so impressive, so why don’t you trade futures? You could make a killing by day-trading futures every day, couldn’t you?”
It’s precisely because we understand the rules and how things work that we take only the wealth we’re meant to earn.
People can only earn the wealth they deserve. Excessive greed turns you into a money-making machine and robs wealth of its meaning and joy.
Once your financial needs are taken care of, you need to learn to slow down.
Go do things that are more meaningful and valuable in life, such as helping others and sharing sound principles, ideas, and methods. That’s what I want to do.
A lot of you may still not understand what I mean, so let me give you a more everyday example.
It’s like driving: the more experienced a driver is, the more they value road safety, because they want every trip to be safe and to reach their destination in one piece.
Having more experience doesn’t mean you have to drive at 500 the whole way and come out unscathed to prove you’re a good driver.
The less people understand the rules and how things work, the more recklessly they drive—running every red light without a second thought.
But when it’s time to pay life’s traffic fines, you look back and realize how much you’ve lost and how much you owe.
Everything I share comes from one intention: I don’t want my friends to realize too late that they’re facing a traffic ticket.
That’s all for today. Let’s talk again tomorrow.