The status quo of the vast majority of long contract players

When some fren began to try contracts, they accidentally tasted some sweetness and thought they could operate. As a result, we all know that the market of crypto world is unpredictable, and it can be understood by a few operations, especially for this kind of white, the market big pump big dump not scratching their heads at all every day, and then losing themselves in the whirlpool of the market.
The specific performance is in chasing rising prices and killing falls, always going long at the high point and shorting the low point; after longing such transactions, their own funds are gone, and the mentality has collapsed. At this time, I was unwilling, I looked at the market Fluctuation every day, and I said that I would never operate again, but I felt that the market was following my own thoughts, so I wanted to operate, thinking about earning back the principal, and I wanted to use the only little money left to be small and big, but as a result, I lost long less long when I went in, and I couldn't extricate myself deeper and deeper.
What do we do when we are defeated by investment?
The market in the crypto world is fair to everyone, and what can really be grasped well depends on each person's ability.
To make an investment, the first thing to beat is yourself!
Investment is a path of cultivation, tempering not only technology, but more importantly, mentality. The factors that affect the change of mentality are summarized by Jin Yu as the following two points:
1. Fund management
Good money management is the foundation for maintaining a stable trading mindset.
Investors with a large Holdings are like pedestrians with a heavy burden on their shoulders, and the slightest obstacle on the road is enough to cause them to fall. The fundamental reason is that his Holdings have become a burden for him, beyond his ability to bear. Why, then, would an investor make a trade that is beyond his ability? Because the desire to make a profit prevents him from judging himself correctly, he has fallen into the trap of profit. Under the temptation of the halo of profit, he can no longer see the trap of loss. The trap of loss is generally in the dark, but the profit is bright, when the investor enters the market with a large Holdings, he will immediately find that there are traps full of losses, and the good intentions before entering the market are instantly shattered by the fluctuations of the market, and he will find that the market is far from being as docile as he imagined. At this time, the desire to make profits has become a disaster for him, a large number of Holdings have become a huge burden, and the mentality problems caused by improper fund management have begun to be exposed.
Second, the correct understanding of losses
Refusing to lose money is the root cause of a bad trading mindset.
Losses are a normal phenomenon in trading, and losses are inevitable. Profits and losses are like people's left and right feet, and successful profits are made up of profits and losses. Profit and loss make up trading, no one can play people for suckers the combination of profit and loss, there is no only profit or loss in the market. The crux of the problem is that the vast majority of long investors treat losses as wrong trades, believing that they are wrong when they lose money, so they constantly demand accurate analysis and prediction market to reduce the number of stop loss. However, the market can not predict at all, investors who regard losses as mistakes can never get out of the fear of market uncertainty, the uncertainty of the market makes investors always in a state of trembling, hesitating to enter and exit the market, stop loss is even more indecisive, even if the fund management is good, they will not dare to effectively implement the trading plan for fear of making mistakes, thus losing trading opportunities.
What is a loss?
To truly understand the meaning of these two words, it is a sentence from a teacher: "If the accuracy of your plan is guaranteed, if your stop loss is reasonable, then the stop loss within the plan is not called a loss, but like a pullback in an rising trend, it is just a stop to reach the profit target." ”
Losses are just the price that must be paid to make a profit in trading, it is just the normal cost of finding a profit opportunity, and any profit must be paid a price, and this is the case in any industry, and losses are a normal phenomenon. A loss does not mean that you are wrong, but only that the cost of your profit has increased. Investors who regard losses as mistakes will lose confidence in trading, because losses will occur frequently, and the loss of confidence is the root cause of a bad trading mentality. A person who is unwilling to accept a loss must be a person who requires himself to be able to accurately predict the market, and he is always afraid of making mistakes, and he is afraid that mistakes will inevitably lead to a bad mentality. Wrong is not terrible, the terrible right is not insisting, accurate prediction market is simply impossible to do, which will cause investors to fall into the confusion of wishes and reality and the mentality is difficult to balance. Right and wrong cannot be judged by profit and loss, but by the quality of profit and loss. If the market is reversed and then the stop loss comes out, it does not mean that you are doing it wrong, but it just means that you are doing it right. On the surface, you have made a profit, but you are really wrong! Only by treating losses as the cost of finding profit opportunities can you not be afraid of losses, and can you accept losses calmly. Only by being able to accept losses calmly, your trading mentality will not be unstable due to market uncertainty.
The "cultivation" process of most long investors has to go through three levels:
1. When he first entered the market: like a newborn calf who is not afraid of a tiger, he immediately jumps into the big market when he sees it, and no matter whether he has a new high or not, he always feels that he has the opportunity to make money. But I don't know how to play to save my life, and I often work hard for a while to Settlement and only make a small amount of money.
Second, the Crypto Veterans after entering the market for a period of time: fearful, guessing the head and guessing the tail, suffering from gains and losses, chasing high and selling low, in and out of complicated, trading plans and trading goals are left behind, and stubbornness has been seen, self-righteous. During this period, it was the most painful, and whether or not he could achieve positive results or not, he could not pass the level of his "inner demon". During this period, longing to lose more and win less. Looking at the end of the world, he almost gave up in one breath.
3. After the epiphany: everyone looked for him k Baidu, and finally found the "way to victory" suitable for self-operation. Lose the money that should be lost, pay all kinds of costs that should be paid, and earn the money that should be earned. Mu Ran looked back, and the target was already beside him.
Whether you can achieve positive results depends on whether you can pass the "inner demon" level. Never act in greed, fear and ignorance!