【100 Questions for Profits】06. Can you succeed in full-time cryptocurrency trading? (Fighting with the gods)

Yesterday, a fren in the live broadcast room asked me how I view full-time cryptocurrency speculation?

I briefly shared my views in the live broadcast room. Today I decided to reorganize my advice on full-time cryptocurrency speculation.

The prerequisite for full-time trading is to have a correct sense of trading.

For friends who want to engage in full-time cryptocurrency trading, you can take a small test to see if your trading intuition is correct. Do you have an order in your hand right now? If yes, how do you feel about it? Satisfied or not satisfied? Why are you satisfied? Why are you not satisfied? If you are satisfied, it's because the order is profitable; if you are not satisfied, it's because the order is losing, then your trading sentiment is wrong. If you are satisfied, because the order is correct, regardless of profit or loss; if you are not satisfied, because the order is wrong, also regardless of profit or loss, then your trading sentiment is correct. Trading is about managing right and wrong, not managing gains and losses. The right feeling of trading is the sense of right and wrong, not the sense of gains and losses. The sense of gain and loss is an innate primitive instinct, and the sense of right and wrong is a professional instinct after professional training. To succeed in trading, one must undergo arduous and extensive self-disciplined training, reshaping the subconscious, habits, and instincts of trading, replacing the sense of right and wrong with the sense of profit and loss.

Only by establishing a sense of right and wrong can you prove that your transactions are systematic and have a stable system mode.

How long does deliberate practice take? At least 5 years.

After preparing for full-time cryptocurrency speculation, would you dare to spend 5 years creating a trading system? Spending 5 years (diligence + understanding + tenacity + losses + consistency) = trading system.

There are many schools of thought in trading, each with several branches. The existence of each is reasonable, and the debate over their merits is meaningless. Everyone can choose the practice that suits them.

The trading system mentioned here refers to a technical trading system, not a fundamental trading system. The conditions, methods, and processes for creating the two are different. Personally, as an ordinary retail investor, I think choosing a technical approach is more reliable. The fundamentals are not in your hands, it's a box of unpredictable changes,

For retail investors, you can try to keep the technology in your hands as much as possible, it is your faithful and reliable servant.

It usually takes about 5 years to create a technical trading system that can operate continuously, stably, and effectively, regardless of the branch.

5 years: 3 years of preparation, 1 year of creation, 1 year of perfection.

In 5 years, you almost have to study, think, practice, explore, reflect, and adjust every day, and keep losing money. In five years, it generally only gets longer, not shorter, unless you have special talent or learn from a true trading master.

The preparatory period of the first three years mainly includes life preparation, fund preparation, study preparation, practice preparation, exploration preparation, and cultivation preparation.

Life Preparation: Good at Working with Yourself

Many friends in the crypto world regret the most in their lives is that they accidentally boarded the "thief ship" of the crypto world. They are in a dilemma, with no confidence to continue and no hope in sight; yet they are reluctant to quit after losing so much money and investing so much time and effort, giving up so many other opportunities.

This is before starting the speculation on cryptocurrency investment, the lack of understanding of trading and oneself, not being prepared for life, not being prepared for capital, and inadvertently falling into it and getting trapped.

Many people see the crypto world as a way to escape reality, seeking a way out in the crypto world when things don't go well in reality.

There is a certain possibility of this, because real-world success is mainly the success of your cooperation with others and society,

And the success in trading is mainly the success of your cooperation with yourself, which is not quite the same.

However, you must know that the you in trading must be more professional and powerful than the you in reality. Otherwise, you escape from the wolf's den of reality, only to jump into the tiger's den of trading, which will be even worse than reality. First of all, in reality, there may seem to be many conditions and constraints when cooperating with others and society. In fact, the laws and regulations of the country, the rules and regulations of the organization, and the moral public opinion of society are all aimed at protecting you rather than restricting you.

The bottom line of all social rules is to protect the weak so that they can survive, and not be as brutally competitive as the animal world.

Animals only have a world, only humans have society.

In cryptocurrency trading, working with oneself may seem simple and free, but in reality, unconditional simplicity and unrestricted freedom are more of a challenge and even harm, relative to the pleasure and comfort you derive from it.

The market will clearly tell you that the biggest opponent for a person is oneself. Without the constraints of social rules, cooperating with oneself is not easier at all than cooperating with others or society, but rather more difficult. I know, many people start to like trading, mainly because they like the freedom of trading,

But I didn't see the grim side of freedom - freedom is the biggest killer of trade.

Freedom is the greatest killer of transactions

24-hour uninterrupted market, with leverage of up to 100 times, the freedom to go as long as you want brings disaster.

When you see it, it's too late. Secondly, in reality, the number of people around you who are stronger than you is limited due to time and space constraints.

But in trading, in the trading network, everyone is free from the constraints of time and space. You are facing everyone who is stronger than you, and of course, you are also facing everyone who is weaker than you. However, trading is dominated by a few strong players, with a more pronounced division between the strong winners and the weak losers than in real life. There are fewer strong winners and more weak losers.

So, in trading, you need a stronger and more professional version of yourself than in real life in order to survive.

If you simply treat trading as a means of escaping from unpleasant reality, it is likely to be even more unpleasant. If you find that you are better at cooperating with yourself than with others and society when it comes to professional in-depth learning, research, and practice, you will likely gain something from trading. What kind of person are you? More importantly, even if you are fit for trading, there is a learning investment period of at least 5 years in front of you.

Can your life and work (if any) allow and withstand such adventure, tossing, and extravagance?

Do you understand all of these? You, your life, your work, your economic situation, your family, Are you ready for this?

Within at least 5 years,

Your main time and energy must be invested in it, Not only can't make money, but also have to keep losing money, And, 5 years later, there is no guarantee of making money either, It's very likely to keep losing, until the end.

Funds Ready: All tuition lost Take out a portion of funds that do not affect your normal life, treat it as tuition fees, and be prepared to lose it all.

Make arrangements to not make money from trading for at least 5 years, for the normal living needs of oneself and family.

If you are prepared for the above aspects of life and have the financial readiness, you are qualified to move on to the next step.

If you are not prepared, please turn around and leave.

If you are not prepared but have already started, this is probably the situation.

So reset the previous path, the things that have been experienced, and the money that has been lost to zero. Just pretend you haven't started trading, Based on one's current situation, Whether one is suitable for trading, Can you make the necessary preparations for studying trading and preparing funds for life? Not suitable, cannot, it is never too late to leave at any time. The direction is wrong, stopping is progress.

It's best not to fantasize about being different and creating miracles. The most extinct in the trading market is Miracle Fantasy. Suitable, able, continue to the next step.

Study Preparation: In-Depth Reading of Classics Learning preparation is to prepare raw materials for creating trading systems, including trading ideas, concepts, technologies, tools, etc.

The most important way is to read, you must put out the greatest enthusiasm for reading in your life. Carefully read classic trading books. Recommended reading list as follows:

Thought: "Tao Te Ching", written by Laozi Concept: Reminiscences of a Stock Operator, Stock Operator's Manual, translated by Ding Shengyuan

Technology: Technical Analysis and Stock Earnings Forecasting, by Shabak Tool: 'Japanese Candlestick Charting Techniques' by Nison The above books should be read over and over again, memorized by heart. Reading a book a hundred times, its meaning will become clear.

Preparation for Practice and Exploration: Diligence is the Most Fundamental Attitude Under the guidance of learning, Light Asset and Micro Warehouse frequently trade, perceive and explore trading methods.

Integrate learning, practice, and exploration closely, promote, encourage, and inspire each other.

Develop a habit of recording at any time, jotting down the essence, inspiration, and ideas, accumulating and preserving them, so as not to lose them along the way. Many of them may become the prototype components for creating trading systems in the future. Analyzing the market is not just about reviewing the current day's data, but also about reviewing the historical data. It involves examining the price movements of various assets starting from their inception, analyzing each candlestick and pattern.

Remember 300 graphics, even if you can't trade, you can trade.

Trading is one of the few industries where even if you put in effort, hard work, and sweat, you may not necessarily succeed.

Ultimately, only a few lucky ones who have both diligence, talent, and opportunity can succeed.

Diligence is just the most basic attitude towards learning trading.

Cultivation preparation: Trading like doing business, being a good person.

To be a good trader, one must be a good person. The reason is simple: a good person's heart is more peaceful and harmonious, which is necessary for running an exchange. Improving trading skills requires improving oneself, achieving harmony within oneself, with others, and with the environment, in order to achieve harmony in trading.

Imagine, if you have tense relationships with colleagues and family every day, and indulge yourself every day, can you focus on trading with mental anxiety and listlessness? If you treat others badly in life, you will treat yourself badly in trading; if you deceive others in life, you will deceive yourself in trading. Your trading failure may just be life's way of punishing you through trading. To some extent, stock speculator Livermore ended up failing like this. Life and trading are inseparable. It is impossible for you to perform poorly in life and excel in trading.

Improving trading, starting from improving living conditions, be a good person.

**Quickly getting rich, story? Accident? Most traders, including you, are likely to fail from the beginning.

Because, even if you don't say it out loud, you are trading with the idea of getting rich quick in your heart. This idea is a wrong target.

The path of transactions leading to this goal will fail from start to finish. It is impossible to create a forward trading system from the beginning. Therefore, in creating a trading system, we must first completely eliminate the idea of getting rich quickly.

If you don't get rid of this devil in your heart, it will get rid of you.

It and you cannot coexist.

Don't say, when you see all sorts of stories of getting rich quickly, you can only say that you only saw the climax of the fireworks, but didn't see the subsequent silent fall.

Almost all stories of getting rich quick, without requiring patience, will impatiently turn into unbearable accidents.

If not, either the time has not come, or the story is false.

Occasionally, one or two godlike figures may confirm the story, but you can just ignore it, as it is merely a myth unrelated to your life transactions.

Follow the common sense of compound interest What we need to remember and abide by is common sense.

Common sense is often forgotten, even ridiculed during market frenzy and the appearance of geniuses, but history has repeatedly told us that standing on the side of common sense will ultimately make us winners.

The common sense of profitable trading is: Buffett has a 20% annual return, he has been unbreakable for 50 years, and has become the stock god. There are many more geniuses who outperform Buffett every year, but those people have disappeared later, only he stands there, truly enshrined.

Among the disappeared gods, many have gone bankrupt or committed suicide.

Common sense always seems plain and unexciting, simply because people are short-sighted.

Only when placed in the long river of time can the charm and greatness of common sense be restored.

Treat time as a friend, enjoy patience and waiting, firmly believe that slow is fast, and stable compound interest is the common sense of making a fortune, which is the bottom line and pattern that traders should possess.

Before you have cultivated to enjoy common sense, sticking to common sense may be painful, but you must believe that the pain itself is the barrier for you to gain excess returns, and it is your core competitiveness.

Those behaviors that seem easy, particularly in line with human desires, and positively reinforce short-term market trends, including rapid wealth accumulation, are actually full of traps.

Heaven and hell are just a thought apart, and in the end it's hell. Why does getting rich quickly almost equal suicide?**

The principle is not complicated, and profit and loss come from the same source. Rapid wealth and rapid liquidation are often the result of some kind of extreme gene.

Extremity, one thought of heaven, one thought of hell.

When extreme volatility meets a bull market rhythm, you quickly get rich, but if it meets the wrong rhythm, you quickly go bankrupt.

For example, in extreme heavy positions, holding on, when the big market has just started, go heavy, and hold on without selling. If done right, quick and huge profits; if done wrong, quick and huge losses.

Some people say, hold on when you do it right, don't hold on when you do it wrong.

Difficult, very difficult. Maybe I did it this time, but there will be a time when I can't.

Extreme heavy position, no matter how many times you do it right in front, as long as you make a mistake and lose once, it's over. Extreme heavy position is a typical gambler's mentality, persistent gambling leads to loss, which is common sense.

Be highly vigilant against accidental quick profits outside the system

Quick profit is a toxic and beautiful mistake, easily addictive and more serious and terrifying than ordinary mistakes, More destructive. In the pursuit of quick and easy profits, the mentality of luck and fortune grows and strengthens directly.

Fortunately, it stubbornly ignites the destructive nature of transactions in human nature, adding fuel to the greedy, fearful, and fantastical enemies of transactions. In the end, not only does it burn all the profits, but it may also burn rationality, scorch the system, burn through the firewall of process control, and destroy the transaction. After making quick profits, immediately exit and suspend trading. Immediately transfer profits to your account to avoid temptation.

Deep reflection, identify the causes of rapid profits, and formulate corrective and preventive measures.

After the mentality calms down and the sense of system control is restored, return to normal trading status. On the trading ground where rapid wealth earthquakes may occur, it is impossible to create a positive trading system.

If you have experienced all of the above, time has tempered your trading system

Adhere to your trading system that has been tempered into steel, and maintain the consistency of the system

Trading is boring, quite boring. It's just waiting for buying and selling points within your own rules. The most foolish person in the world is the one who thinks he has discovered the truth that others cannot discover. A seasoned trader does not believe that there is a unique secret to trading, even the most profitable trading strategy techniques have long been public, common knowledge, and able to withstand constant temptation while adhering to their beliefs, which is the only difference between winners and losers, there are no other secrets. There have been many friends before and after, telling me about various difficulties, and wanting to make some profit through trading. I told her all of my trading strategies, she knew where I bought and also bought there, my trading was completely transparent to her, but after a period of time, our trading results were very different. Because she always loses herself in the tempting fluctuations of the market, unable to withstand the volatility. Either she buys too early for fear of missing out, or she misses out because she wants a lower price. Either she sells too early for fear of selling late, or she sells late because she holds too many fantasies. This is trading, don't always think that those who make money have some secret method of counting money behind closed doors. This market has existed for hundreds of years, and any profitable or unprofitable method has long been thoroughly researched. You can no longer find anything that previous researchers have not explored, so don't think that you have any new discoveries, which are often self-woven traps.

Make profits within your own rules

Fluctuation comes from the market, but high risk does not come from the market, but from your hands. Whether it is a strategy or a plan, once it is executed, it must be strictly enforced, because only when you formulate strategies off the field can you maintain objectivity. Once you are in the field, you lose rational judgment. At this time, the only way is to execute the established strategy. If you make random decisions in the market every day, then all the previous costs you have paid and the experience accumulated from trading will be of no help to you. At this time, a seasoned trader and a newbie have no difference. What fills your heart is only blindness and wishful thinking. No matter how the market goes, stick to your own bottom line of operation, maintain consistency with trading rules. Not all markets should be profitable under your trading rules, which you must understand and accept. Profit from trading within your own trading rules. Bulls and bears can both make money, but only slick operators have no future.

A Perfect Full-time Trader

Trading itself is a brutal game of the survival of the fittest. If, others are all lost, and you still stay awake. If, everyone is in doubt, but you can still persist - and consider their doubts fully. If you can wait and wait in loneliness instead of losing patience. Or, if people lie to you, you can separate the truth. If you can dream, but not let dreams be your master. If you can think, but not make thoughts your shackles. If, you encounter victory and disaster, you will neither rejoice nor weep. If you can tolerate your correctness being maliciously distorted, and you can take it calmly. If your carefully nurtured treasure suddenly shatters, you pick up the pieces and restore it. If you are at war with the gods, you do not feel weak or lonely. If you are already rich, you can still maintain a good daily routine. So, victory will be yours.