Discipline surpasses intuition, staying alive is the top priority
If you've clicked on this title, you have probably experienced those moments: the speed at which your account balance shrinks is faster than a market crash, and the money for averaging down feels like it's being thrown into a bottomless pit. Don't panic, I understand.
I am an analyst who has been struggling in the cryptocurrency circle for seven years, today I won’t talk about empty words, just the truth.
The truth about losing money: the direction is wrong, efforts are in vain
I have seen too many people, during the day they work while idly watching the market, at night they stay up late watching the K-line, but in the end, making ten profitable trades can't compensate for one loss. The core of losing money has never been luck, but cognitive bias.
Blindly chasing price spikes is a fatal flaw. Whenever the market shows signs of movement, FOMO (fear of missing out) kicks in, and you end up being the one left holding the bag. Remember before Bitcoin's flash crash last year, many were chasing highs, but institutions had quietly reduced their positions, leaving only retail investors standing at the peak.
Blindly following the 'big shots' is equally dangerous. In which group does someone shout 'must rise' and everyone rushes in? Little do they know that they may just want to offload their assets. The market is specialized in treating all kinds of non-compliance; emotional trading is the fastest path to bankruptcy.
From 'recovering losses' to 'stable withdrawals,' my practical insights
I am not a 'teacher' who can turn stone into gold, but I have many cases of helping people climb out of the mire. My methodology is very simple: strategy is greater than luck, discipline is more important than intuition.
Trends are your friends, but you need to recognize them. When Bitcoin repeatedly tests key support levels, I advise students to gradually position themselves; the reason is simple: reduced selling pressure from miners and capital inflow. This is the signal provided by on-chain data, not random guesses. Don't go against the trend—trying to catch a rebound in a downtrend is like catching a flying knife with bare hands; it's better to wait for the trend to confirm before acting.
Position management is key. I remember a client who had only 800 U left after a liquidation. I advised him not to exceed 5% of his capital per trade and to set a strict stop loss at 3%. A few weeks later, the account grew to 18,000 U. The core issue is not how much you earn, but how long you can survive. Leverage is poison, but it can also be a cure; however, beginners should never touch leverage above 10 times.
Emotional stability is more important than technical analysis. One of my students can earn 30% a month, not because his techniques are outstanding, but because he strictly follows the rule of 'no more than 2 trades a day, and take profit if over 10%.' Machines can always stay calm; people need to learn to restrain their greed.
Survival guide for the crypto world: How should ordinary people play?
If you don't have time to monitor the market, regularly investing in mainstream assets is better than messing with altcoins. Why do some people dare to increase their positions against the trend? Because they are betting on the penetration of crypto infrastructure in the next ten years.
Don't pin all your hopes on the crypto world. Accumulating coins is one thing, work is another. Very few can become rich in a bull market; steady and methodical is the path for most people.
Learning on-chain data is crucial. For example, a decrease in exchange balances indicates accumulation, and miners withdrawing may signal selling pressure. This data is more reliable than any 'insider information.'
Conduct in-depth research on project fundamentals: check the project's official website, GitHub code, project documentation, community forums, etc., and combine this with authoritative data sources like Messari and The Block for research.
The final heartfelt words
I know many people come to me wanting to quickly recover their losses. But I’m sorry; I don’t have the magic to turn stone into gold: I can provide you with strategies, but the execution is up to you; I can point out risks, but letting go of greed is up to you.
The harshest truth of the crypto world is: most people are destined to lose money because they would rather spend tens of thousands on tuition than spend a week studying the basics. If you can't even be bothered to look at basic indicators, expecting to get rich by copying others is a bad idea; I advise you to leave the market sooner rather than later.
But if you are willing to calm down and treat trading as a practice—welcome to communicate with me. There is no fairy tale of financial freedom here, only solid position planning and risk control.
The key to surviving in the crypto world is not how much you earn, but how long you can live. This is my personal opinion, and I hope it inspires you.
If you have any experiences or questions in the crypto world, feel free to share and discuss in the comments!
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