The market collapses, but the sky still cannot fall

Original title: How to survive losses without losing your mind?

Original author: Tokyo

Compiled by: Asher

Growth and evolution in the ups and downs

In recent market trends, Bitcoin fell by more than 20%, Ethereum also fell by nearly 30%, and many altcoins even plummeted by about 70%. Whether you are an old leek who has been in the market for a long time or a newbie who has just entered the market, such a huge fluctuation is caught off guard. It is safe to say that this reshuffle in the market is not a unique experience for some people, but a pain that the entire crypto world has experienced together.

Everyone is bleeding, not just you

When prices plummet, many people will inevitably feel anxious and powerless. I myself have also suffered considerable losses. Although I have experienced bull and bear cycles in the past, every big drop still makes me feel nervous. The decline in the market not only brings a shrinking number, but also a heavy blow to faith and emotions. We are used to the rapid operation of the market. The fanaticism during the rise and the panic during the fall are almost common, but this violent fluctuation makes everyone feel the heaviness and helplessness of the losses. No matter how your position adjusts, the pain you feel during this wave is common.

First, please stop and take good care of yourself

Market fluctuations caught people off guard, and many people were eager to act because of panic and tried to quickly turn the situation around. At this time, the most important thing is not how to quickly recover the losses, but to learn to stop and adjust your emotions first. Please turn off those K-line charts that are constantly refreshing and leave social media temporarily. Don’t let the noise and negative news from the outside world further disrupt your mood. Give yourself a rest period and enjoy a hot meal, plenty of sleep or a leisurely walk to get the necessary rest and reset of your body and brain. Only when you regain your own peace can you have clear judgment and face the market again.

Power off and restart, starting with your body and mindset

Sometimes the simplest adjustment can make the biggest change. Pausing the information flow that makes you anxious and focusing on your basic life routine is an important first step to get out of the emotional trough. Try to spend a whole day away from your computer and mobile phone screens and give yourself a chance to "offline". When you put down your phone, close your eyes, and quietly experience the rhythm of your breathing, the peace of mind and body will gradually regain your inner strength. As we often say, only by first repairing one's body and mentality, and then repairing the numbers in the account, is the right way to get out of the trough.

Revisit the market calmly and face losses rationally

After your emotions gradually stabilize, please take out paper and pen and think carefully about and review the trading process. This step is not to make you indulge in self-blame and regret, but to find out the root cause of the losses. During this process, you can ask yourself: Are your positions too heavy? Are the stop loss settings ignored? Are you blindly following the trend and chasing the rise? Or trust some unverified information? Writing these thoughts in detail and recording every lesson and reflection is not only a way to grow yourself, but it will also help you avoid repeating the same mistakes in the future market. Although losses are painful, only by drawing experience from them can we gain the upper hand in the next market turnaround.

Reconstruction starts with the foundation and progresses step by step

The most important thing now is not to rush to find new profit opportunities, but to let yourself enter a stable and orderly life. Readjust your work and rest time, ensure adequate sleep and a healthy diet, and insist on moderate exercise. These seemingly ordinary living habits will lay a solid foundation for you to rebuild your inner self and trading system. When you can restore your daily routine, your inner impetuousness and panic will gradually subside. Rebuilding yourself is not just as simple as entering the market again, but starting from the most basic details of life, making yourself stronger and calmer.

Rebuild your mind and focus on what you can control

Although you have no way to control the trend of the market, you can completely control your learning and thinking. Try to review every past transaction in depth and carefully study the reasons behind success or failure. At the same time, pay more attention to some on-chain data tools, such as Nansen, DeBank, etc., to obtain first-hand information and data support. In addition, you can also pay attention to the trends of those big investors or "whale addresses" to understand their investment strategies and operation logic. Through continuous learning and accumulation, you will gradually discover that the power of reason and data can determine your investment results more than temporary emotions. The real winner is not just someone who can take the lead in fluctuations, but is a person who constantly improves his cognitive level in peace.

Remember: Don't rush to win back

Stimulated by losses, many people are eager to make a comeback and hope to recover their lost funds as soon as possible. However, this is often a road to self-destruction. A rush to turn your money can easily cause you to fall into a vicious cycle of high leverage and frequent trading, and may eventually completely clear your account. At this time, what you need most is calmness and patience, rather than blindly following the trend. Only by waiting for the market to recover rationality and waiting for the signal to be truly clear, then taking decisive action can we effectively avoid the risks brought by impulsive trading. A truly smart investor knows to stabilize his emotions during a volatile period and wait for the crucial best time to take action.

Growing up in pain, cognition makes you stronger

After experiencing this baptism of the market, you will find that pain will eventually be transformed into precious wealth. The market trough allows you to see your own shortcomings and deficiencies, and also allows you to understand the importance of steady progress. Maybe you are walking slowly at this moment, but every decision in the future will become more calm and rational. You will learn how to seize long-term opportunities and no longer pursue every transaction that must be profitable. It is precisely when you grow up in such a dilemma that you will be more resilient and insightful, and gradually find your value and beliefs from it.

If you're still persisting, you're already ahead

When you read these words, it means you still choose to walk with the market rather than leaving completely due to temporary setbacks. Compared to those 90% of those who choose to give up, you already have more courage and persistence. Loss is not the whole of your identity, but the process of how you face and learn from it. It is these experiences that will ultimately make you a mature, sensible and more capable investor to deal with market volatility.

Slow down and adjust yourself so that there will be infinite

possibilities in the future

The market will have ups and downs, and you will also grow in every fluctuation. Please remember that a stable mentality and continuous improvement of cognition are the key to your long-term success. Take your eyes a little further. After you have completed self-adjustment and cognitive upgrade, the next opportunity will come quietly. By then, you will stand at the highest point of the market with a more calm and firm attitude and welcome a brighter future.