Reflection on the Million Dollar Trading: Less is More

Author: b12ny

There are two types of traders in the market. One is that they know how to make too little money and the other is that the more they understand, the more they lose.

When I stepped into the trading path, I always thought that the more I learned, the more I could earn, but it was not until later that I realized that the market was not a knowledge competition, but a cruel game.

Because the market is not as hot as in the previous few months, and the beginning of this year is also the time when I have the worst trading performance, I began to review the trading history from the past to the present.

From the emotional trading that novices had at the beginning, to the data trading later, to the current trading sentiment.

Along the way, I have not become more aware of the market, but understand how to adapt to this market. So I learned to delete unnecessary cognitive burdens and find the core elements that are truly suitable for my trading.

Phase 1: Emotional Trading

I remember when I first entered the market, all trading decisions came from intuition and slow market popularity. FOMO is my trading driver. Like everyone, I use Musk’s Twitter to decide when I want to rush. I browsed Twitter and entered a bunch of TG groups, for fear of missing any "hundred times opportunity".

I feel that I have a strong sense of participation and have the opportunity to enter the market at any time. The market popularity and Dogecoin at that time made me feel like I am a blockchain genius. Until I encountered the first collapse after frequent transactions, I experienced the maximum drawdown and lost nearly 70%. It seems reasonable to enter and exit the market, but when I look back, I am all stupid.

At that time, I even doubted whether there was a dealer staring at my position, but in fact I just didn’t know how to trade through the logic of market operations.

Phase 2: Data transactions

After realizing the problem of emotional trading, I began to turn to data analysis. Because of my own data analysis background, I began to study on-chain data, capital flows, and liquidity changes, and used data to build trading strategies, trying to follow the whale to find the perfect entry and exit location.

Such data advantages made me rational, thinking that I had seen through the so-called dealer operations and reduced the number of times I was led by the market. When I found that trading was too dependent on indicators, decisions began to become complicated and the difficulty of execution became more difficult.

When the data does not match market sentiment, I also began to fall into the dilemma of thinking that theories are correct but the market does not pay for them. I learned how to use data to verify market logic, but I was slapped in the face by the market and told me:

“No data can fully predict what will happen in the future.”

Phase 3: Trading sentiment

When I reached the middle and late stages of trading, I began to realize that the market never gives you perfect opportunities. The real trading point lies in the resonance of key variables (uncertainty) and market sentiment.

The value of data lies in providing history and possible directions, rather than the Holy Grail with a 100% winning rate. In the future, trading will not be able to make more money by who knows more, but by who can live in the market for a longer time (losing less).

So I began to delete unnecessary data analysis, no longer focused on every detail, but only focused on Narrative, capital flow, liquidity and emotional turning points.

My trading method is becoming easier and easier. I no longer pursue "perfect data matching". I only enter the market at the critical point of the market, increase my fault tolerance space, reduce information overload, focus on those core variables that I think affect the market, and can adapt to market changes more flexibly without being restricted by a single strategy.

Trading is an endless conversation with yourself

Until today, I finally realized that trading is not about knowing much, but about knowing what to ignore.

You can analyze on-chain data, study market sentiment, capture short-term, and track capital flows. You can understand market sentiment in MEME coins. A meme ignites FOMO, and a tweet pulls a currency away, and you can also get out before faith collapses.

Although you will have so many things, it will not delay you from losing money. This is the cruel reality.

The key to trading is not to master all the information, but to simplify and focus on several important things, be able to screen market news, believe in your decisions at every step and bravely admit right or wrong, and you will have the opportunity to continue to live in this market.

The above is my personal experience from emotional trading to data trading, and finally returning to the market rhythm. My experience is not linear, but a process from chaos to order, and finally returning to simplified.

Finally, what I want to say is that you can lose anything.

But even the smile of super idol is not as sweet as yours.