How to do risk control is the first lesson of trading, and the rated amount is the only risk control measure that can ensure that there will be no liquidation in any extreme market conditions!
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Trading is like navigating obstacles along the road. A person’s life is about overcoming difficulties and surpassing oneself through trial after trial.
Exercise, sleep, reading, and eating are the four big things we do every day. Trading comes after them. Only when you take care of the first four can you trade well!
Trading results are determined by the market, not by predictions. If you can align your knowledge with your actions and fully execute your own trading plan, you’ve already surpassed 99% of people in the market.
Clouds press low on distant peaks; the wind sweeps silently over the plain. A world of shimmering light seems never to cease, while hidden currents curl beneath.
Wait quietly for the fierce waves to rise; do not yearn for the beauty of fleeting mist. When, in an instant, the vast blue waters have ebbed away, draw in your oars as the boat runs aground.
Time is the absolute master that determines market trends!
Anyone who bases their trades on studying messages, event news, or what someone says is bound to lose—they’re just a sucker!
Those who draw trend lines and study chart patterns are at a grandchild-level of skill, because drawing lines is entirely subjective!
Those who study price are at a parent-level of skill, because over the long term, all financial assets tend to revert to their intrinsic value!
The true masters of trading are those who study time cycles, because everything has cycles and frequencies. This is the level of the Dao—it is not subject to human will! #BTC☀
When All Are Greedy, the Clear-Eyed Are Destined to Be Alone
I rewatched the film (The Big Short) over the holidays. Today's article is my reflection on it; The cruelest truth in this world has never been a market crash or wealth wiped out. It's when everyone is making a killing, and you're the only one who sees that disaster is coming. (The Big Short) has no heroes, no comebacks, no stirring triumphs from beginning to end. Just a thoroughly cold-blooded, bone-chilling con built on human nature. In 2008, U.S. home prices were soaring, and the whole country was caught up in the euphoria. Banks flooded the market with money, investment banks committed fraud, rating agencies cheated, and ordinary people borrowed recklessly to speculate on real estate. Everyone firmly believed that rising prices were the norm, bubbles didn't exist, and risk was a lie.
Could it be a double kill for both long and short? Be a little more cautious with contracts~ After all, it's easy to get flustered before falling under the bull! Options are another way of thinking, another choice!
Yesterday in the live stream, I already mentioned that YiMing is currently not participating in trading this asset. The reason is: no matter whether it goes up or down, you can’t find any reasonable anchor point.
The only clear thing is that the probability of seeing 1505 below by year-end is low. This anchor can only be used as a reference for spot traders to consider low-buy entries.
For futures and options traders, regardless of bullish or bearish scenarios, there is no anchor point.
You can’t directly infer that 2665 is the recent high, so there is no basis for going short.
And you also can’t rule out the risk of a pullback, so it’s not really suitable for long positions either.
For assets with no anchor points like this, it’s best to avoid them for now.
The trading market isn’t short of opportunities—what it lacks is capital. When there’s no good opportunity, don’t force it; otherwise you’re likely to get hurt!
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.
High-risk overconcentration is risky. Optimize your trading system from these three aspects: opening conditions, position management, and the choice of trading tools—so as to improve your trading win rate and profit-to-loss ratio!