【Profit 100 Questions】05. 20 truths about the crypto world

01

Those who speak do not know, those who know do not speak. When you hear news of a project making a fortune, it often means the time to dumb buying has come. Many projects are carefully packaged eyewash, using greed to harvest suckers. Never invest emotionally based on small street news.

02.

Contracts can bring big profits, but the win rate is not 50-50. In fact, due to human flaws and the randomness of market profits, less than 10% of people can consistently profit. Contract trading is extremely risky and can only be mastered by a small number of professionals.

03.

The winning rate of 100x coin is very low. You may think meme tokens have a chance to increase by 100 times, but in reality, 99.99% of meme tokens will end up at zero. Most meme token projects are worthless money games, so investors need to be cautious.

04.

The dealer is a friend. If you think the dealer is an enemy to be defeated, in fact, the dealer is the dominant force in the market, and only by following the dealer can you gain profits.

05.

Other than BTC, none of the coins are worth investing in or hoarding. Never hold your alts into the next cycle.

06.

People who can’t afford to lose and can’t afford to earn are not suitable for participating in the crypto world investment. You must use money that you can afford to lose for trading, not afraid of losing money, in order to profit.

07.

Luck is what determines success in trading on the exchange, but the environment is what determines success outside of it. The environment you are in is closely related to your trading results.

Huge losses are always caused by small off-site incidents, such as things that make your life and emotions unstable.

08.

No one can catch all the market movements. Do not compete with others for returns, just compare with your own account.

If you always care about how much others earn before looking at yourself, it’s easy to feel unbalanced. Just compare with yourself, it’s enough. There’s no need to compare with others, there will always be someone better than you. As long as you make steady profits, you can outperform most people.

09.

Even if a transaction has a 70% success rate, one must not forget the risk of a 30% loss.

Pay attention to position control to avoid bankruptcy risk. Once the account is empty, it means permanently leaving the gambling table, and subsequent games will not be able to proceed.

10.

Seeing is believing. The trend you see is the conclusion of the market, do not overinterpret the market. Do not impose reasons for the rise and fall based on the results.

11.

As long as you participate in altcoin spot or contract trading, the mentality of luck is the root cause of liquidation and heavy losses. Without the courage to make tough decisions, it is difficult to succeed. Making the wrong trend direction, never holding a position, making mistakes is not scary, being liquidated is the most frightening.

12.

The crypto world is not for making pocket money every day. That’s what Yu’ebao is for, making stable daily profits. The idea of making small profits will die sooner or later because you take on a huge market risk to make a little money, and you may lose it all at any time, with a serious risk-reward ratio imbalance.

13.

Be a long-termist. Whether a single transaction is profitable or not, it doesn’t matter at all. Even if you have five consecutive losing trades, it still doesn’t matter. A trading system with positive expected value will always have a series of profitable trades and a series of losing trades. When you understand the meaning of the law of large numbers, since the outcome will definitely be profitable, why be upset and anxious about a few failures and stop losses?

14.

Most people do not understand the principle of ‘profit and loss from the same source’.

Those who habitually flee at the top will definitely sell off, and those who hold recklessly will eventually lose all their profits, and even get deeply tied up.

Only earning a fraction of the visible profit is the right way, but it is very anti-human nature.

15.

When the blogger and retail investors are advocating everywhere, it’s time to consider reducing position as the temporary peak has arrived.

16.

Only 10% of the time is spent on trading. The rest of the time is spent on observation and contemplation. The essence of trading is not what to buy, but what not to buy, waiting.

17.

Do not have expectations for prices, do not think that prices cannot return to their previous levels. Ups and downs are the basic laws of the market. Any price can rise or fall. Any price level is likely to go down, and the probability of going down is not low.

18.

Just predicting the market is useless. If it were useful, people would have made a fortune by now. The market cannot be predicted. Instead of asking whether it will rise or fall, plan your response to both scenarios. How to operate if it rises, and how to respond if it falls.

19.

Show Hand is because of greed, chasing highs is because of impatience, the more human weaknesses, the faster they lose. The financial market is originally a cognitive competition, and money flows from the pockets of fools to the pockets of the wise.

20.

The alternation of rise and fall is an inevitable law of the market. The transformation from bull to bear is like the change of four seasons, a inevitable event. Some people always think that a bull market is a safe market where money can be picked up everywhere, while a bear market is a weak market that should be avoided at all costs. In fact, those who really lose big money are in a bull market, and those who really make big money are those who lay out at the end of a bear market.