The following is purely a personal experience sharing!
A truly qualified trader should go through the following:
First, hold positions and monitor the market for one to two years, spending at least a few hours every day. If you don't hold positions and monitor the market, it’s useless; your market sense won't be strong.
Second, receive liquidation messages frequently; you need to learn how to plan your position management and risk-reward ratio well!
Third, you must experience countless losses, grow through the pain, achieve enlightenment, adjust your mindset, and manage your emotions well.
Fourth, you absolutely cannot escape this industry; otherwise, your pain will be diluted, and you won't truly grow, breaking out of your cocoon to become a butterfly!
Fifth, understanding human nature is very important. The main point is to know who your opponent is and to analyze the operational methods of institutions.
Sixth, learn to be in cash. When you are in cash, your willpower has already overcome your desires. High-level hunters also need enough patience to wait for a good opportunity! There are definitely few who can make money in this field because it is a road to the underworld; very few can survive.
Seventh, everyone has their own trading system, which has its own merits. Those with a slow personality should do long-term trading because they can hold on, while those with a fast personality should do short-term trading. However, you must manage your positions well, using win rates to improve your risk-reward ratio. Before this, you need to manage your positions well, for example, using 10% of your funds each time. You should practice trading without self, meaning even if you act like a robot, placing orders with zero emotions. Regardless of the trading system, you must go through rigorous training and only increase your capital when you feel you can profit! Otherwise, it will be in vain!
Eighth, keep it simple. Start with position management, using 100 USDT, with 10 USDT per trade, to practice. For example, if trading ETH, aim for 30 points. First, practice execution repeatedly to form muscle memory for placing orders! On this basis, then study win rates and risk-reward ratios.
In the cryptocurrency contract market, human nature is maximized in trading; you must have a sense of reverence!
Contracts have 100 steps. When your trading system can be profitable, you are only about 60 steps in. After that, you still need to maintain and stabilize your position management! There is much more to learn! Even if I can provide good entry points and timing, I still need to continue learning! After achieving stable profits, there is also the knowledge of compounding, and there is knowledge in averaging positions! What I’m talking about is not learning technical analysis, drawing lines, Fibonacci, or MACD; I only focus on the matter itself. These things are not useful and can instead become your shackles. If you don’t go down, you say it’s a support level; if it goes down, you say it’s a breakout. You can always deceive yourself; the situation is created by the mind! When institutions absolutely crush or pump the market, all technical analysis is useless! In other words, when the real market comes, the first to die will be the technical analysts!
For me, what is analysis?
It is human nature.
It is a general prediction of collective trends (for example, will the US dollar index and US stocks provide opportunities for the cryptocurrency market? For instance, if US stocks keep falling, the probability of a cryptocurrency rally is naturally low, while the probability of a crash is high!)
It is an understanding of news that exceeds that of ordinary people (when news comes out, you must at least judge whether you are among the first to know about it. In most cases, you definitely are not; by the time you see it, the news has already played out.)
It is standing on the side with fewer chips based on your comprehensive analytical ability (only this is strength; everything else is luck).
The reverse is the movement of the Dao; learn to take when others abandon, and align when others take. Studying this can also improve your win rate. When you are afraid to enter the market, that is precisely the time to enter. Although there may be losses, you need to review carefully. Most of the time when you hesitate to enter, it is actually a good time to place an order!
Finally, a piece of advice for newcomers and inexperienced traders!
Desire should be less; live a happier and freer life. You don’t have to play contracts. Believe me, if you don’t trade contracts, you are already ahead of over 95% of people in the cryptocurrency market, and over 95% of people wish to return to the initial lifestyle where a salary of a few thousand is not important! Very few people can gain enlightenment on the path of contracts; it’s like winning the lottery!
The essence of contracts is rock-paper-scissors; you go first because when you place an order, your chips are already on the table! So, what is your probability of winning?
Betting once has a 50-50 win rate; betting 100 times, you might not even have a 10% win rate because it’s simple: the techniques you learn will interfere with you, your inexperienced thinking will trip you up, your emotional management will hinder you, and your greed and desires will bind you from making the right decisions!
I know few can understand this, but it is the truth! I wish everyone finds the path that suits them soon!
For those who like to communicate, follow the Trading God and scan the WeChat public account below.
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