Farewell to the Leek: In 3 years of crypto market, I have learned the rules of survival from 7 "pits"

Original title:Trading Crypto for 3 Years Taught Me These Hard Lessons — Here's What I Learned.

Original author: Paul G

Original translation: vernacular blockchain

If you ask me what I felt the biggest in the crypto market in the past three years? I will tell you that it is not the stimulus of a surge or the panic of a surge, but the profound lessons brought by countless "pits".

Three years ago, I entered the market with the dream of getting rich overnight, and imagined to easily achieve financial freedom. But reality is like a cruel teacher, teaching me what it means to respect the market with "pits" again and again.

In the past three years, I felt like I had experienced a thrilling jungle adventure, and these 7 "pits" were the maps and compass I exchanged for with real money.

The Trap of Overtrading: Less is Lessons of More

When I first started trading, I was obsessed with staying “active”.

Each K-line is like an opportunity to me, and every rise is like an opportunity to make a lot of money. But I quickly realized that a lot of transactions does not mean a lot of profits.

In fact, frequent transactions often make my wallet lighter and my regret worsens. Remember when I said I felt I had to participate in every transaction? Yes, this mentality almost made me lose everything.

A lot of transactions does not mean a lot of profits.

Looking back, I found that keeping my troops is often the smartest choice. If the market does not give you a clear chance of winning, why forcefully trade?

Are you willing to make five mediocre deals, or are you waiting for an excellent opportunity?

The answer is obvious now, but it took me real money to truly understand this truth. Trading out of boredom is like chasing the rise without doing research – a recipe for disaster.

Exhaustion is the enemy of trading

I hope someone engraves this truth into my mind as soon as possible: Never trade when you are tired.

I used to feel like I could stay up late and stare at the charts and observe the market like an eagle.

Well, I was wrong.

My decisions became as unreliable as a smart contract with loopholes. To be honest, how many successful transactions have you made after staying up late?

Yes, almost nothing.

Decision fatigue is more intense than flash crashes. When you are exhausted, your brain takes shortcuts, and these shortcuts often lead directly to the wrong decisions.

Don't trade when you're tired.

I have repeatedly refused to rest because I was too stubborn and ignored risk management. Now, I treat sleep as a rule that cannot be negotiated. If I'm not in good spirits, I won't trade.

Don't break the trading rules easily

One of the hardest lessons I have learned is that rules are not only guidelines, but also life-saving straw.

Early on, I felt smarter than my own trading plan. "Just this time," I would comfort myself like this, move the stop loss point or increase my position.

Does it sound familiar? It should be because every trader has experienced this moment.

But the truth is: there is a reason why your rules exist. They are extracted from the painful lessons.

Breaking the rules is like there is no strategy in a bear market - it is only a matter of time before the market is destroyed.

Discipline is not about pursuing perfection, but about doing the right thing even if it is uncomfortable.

I gradually realized that the best traders are not people who never make mistakes, but people who can stick to the rules even if they make mistakes.

Emotional roller coaster: Manage your mental strength

Now, let's talk about what most traders ignore until it backfires: mental power.

Have you fallen into a vicious circle of losing streak, and every transaction is worse than the previous one? I've experienced it and it feels like trying to recover from a Rug project.

Sometimes, the best choice is not to make another deal, but to get out completely.

This lesson has been unforgettable for me during a particularly difficult period in my trading journey. I kept increasing my position of losing money, thinking that I could turn losses into profits.

What saved me in the end? rest.

Walking away gave me the clear mind I needed to start over. After all, if your heart is as chaotic as the funds of a hacked exchange, what’s the use of technical analysis?

Risk Management: The Simple Secret of Survival

Let's be realistic – risk management may not sound sexy, but it is the backbone of successful transactions.

Most traders focus on the entry point, as if it was the Holy Grail, but the exit point was the real magic.

Have you ever made a perfect entry deal but thrown back all your profits (or even more) because of no exit plan? Yes, we've all experienced it.

Position size, stop loss, and risk-return ratios may not be attractive, but they are the basis for survival in the cryptocurrency market.

Think of this: Do you want ten small wins, or will you bear a big defeat to zero the account in one go?

Choice may seem obvious, but too many traders ignore these basic principles.

Remember, in cryptocurrencies, survival is victory.

The self-inflated monster: Stay humble in a bull market

One of the hardest facts to accept is that the market doesn’t care about your self.

Nothing can make a trader self-inflate than a big win. Suddenly, you feel like you can predict the top and bottom like a prophet, and you feel like you have cracked the password to the market.

But reality will give you a blow-the market always has a way to remind you who is the boss when you most unexpectedly.

After making some good returns early in my trading career, I began to feel like I knew everything.

Fast forward to the next cycle, and my "stable profit" transactions were ruthlessly defeated by the market.

The market doesn't owe you anything, and staying humble is the only way to stay in the game. Trust me, your pride is not worth exchanging for your portfolio.

The hallucination of advantage: knowing when to stand by

This is a somewhat controversial point of view – sometimes, your biggest advantage is knowing when not to trade.

Too many traders force bets in areas they are not good at, thinking that they must always be active. But ask yourself: Are you willing to make a mediocre deal, or are you waiting for an opportunity that belongs to you?

I made a simple rule - if I can't explain my strengths in one sentence, I won't trade.

This method prevented me from numerous bad decisions. Remember, the market will not run away. Opportunities will always be left to those who are patient and disciplined.

summary

Ultimately, a successful deal is not about showing off victory or getting rich overnight. Its core is to keep avoiding mistakes and keeping capital when the chances of winning are really on your side.

Every point I share comes from my personal experience and painful lessons.

So, next time you can’t help but want to make a reckless deal or ignore your own rules, remember these principles.

They may not guarantee you to soar, but they will keep you in the game long enough to seize some real opportunities. After all, in the cryptocurrency world, endurance is the ultimate winning weapon.