Today's Thoughts

1. "About why the big V went from making millions to zero"

When the money in the hands of many influencers rolls into millions, they seem to be doing great, but then they suddenly face liquidation and end up with nothing. In fact, they fall because of a few simple mistakes.

First, when they make money, they get carried away and consider themselves the "chosen one." At the beginning, they understood small positions and low leverage, but once they tasted success, they dared to max out their leverage—if 10x wasn't enough, they'd go for 20x, throwing all their money in. They forget that leverage is a double-edged sword; if the market shakes a little, they can be wiped out entirely under high leverage, and all their previous glory turns into bubbles.

The second issue is greed and lack of courage to cut losses. When making money, one always feels they can earn a bit more, holding onto their position and ultimately reversing profits into losses; when facing losses, they are reluctant to stop-loss, always fantasizing that "it will bounce back," even averaging down to hold on, and in the end, their margin is exhausted leading to forced liquidation.

Thirdly, treating luck as skill. Many million-dollar fortunes are made by hitting a good market, but they truly believe they have unique insight and start making random trades. When the market changes, their old methods fail, yet they refuse to adapt, and end up being crushed.

Fourth, do not leave a way out. If you invest millions with no reserve funds, you won't be able to withstand several consecutive losses. When you're anxious to recover your losses, you gamble even harder, using higher leverage and taking larger positions, ultimately forcing yourself into a dead end.

Fifth is being held hostage by fan expectations. After making money and becoming a "master", one always thinks about maintaining an image of being "always right" in front of fans. When losing, they dare not admit it, and when prices drop, they stubbornly refuse to cut losses, fearing losing face in front of fans. For the sake of so-called "face", they stubbornly turn small losses into big losses, and eventually cannot hold on and go directly to zero.

In the end, they didn't lose to the market, but to themselves—forgetting the risks once they made a profit, letting greed override reason, and being swept up by external expectations. Just a moment of blind confidence in "I can do it" is enough to fall from millions back to zero.

Summary:

- When you make a profit, you become inflated, blindly increasing leverage and positions while ignoring risks;
- Being greedy and unwilling to cut losses, holding on after profit reversal leads to expanded losses;
- Mistaking luck for ability, stubbornly holding onto one's views even after market changes;
- Do not leave spare funds; after a loss, rush to recover and gamble even harder.
- Kidnapped by fan expectations, stubbornly enduring losses for the sake of face, ultimately going to zero.

2. Why our novice may lose everything
Why are many people still losing money in a bull market? Everyone must remember these 7 iron rules.

①Do not enter directly
②Don't pursue a high profit-loss ratio; 1:1.5 is already quite high.
③Avoid high-frequency trading; three times a week is already quite high.
④Do not use high leverage; 3 times is considered high leverage.
⑤Don't think about trying to win back your losses. Remember, your thoughts determine everything.
Do not say that you are a contrarian indicator. Remember that thoughts determine everything.
⑦Do not borrow money from others

Some things I tell myself every day, people might think I'm crazy, but I don't want to be this way. I've unconsciously become like this:

1. Always go long; I would rather lose a hundred million by going long than gain a quick hundred by going short. The money made from shorting never lasts.

2. Do not use too much leverage (BTC no more than 3x leverage, ETH no more than 2x leverage)

3. Recite daily (do not short, shorting is like sand) 100 times

I hope everyone doesn't end up like me and become a lunatic.

Summary:

- Novices often lose money due to violating the iron rules, such as entering the market blindly, trading at a high frequency, and using high leverage;
- Mindset is very important. Don't think about making back your losses, don't deny yourself, and absolutely don't trade with borrowed money;
- Individuals insist on going long and controlling leverage. Although the approach is extreme, the intention is to avoid risks and remind others to operate rationally.

Reflections on Resetting Myself

Looking back at myself approaching zero time and time again, the problem is actually very clear; it is all caused by my own actions.

First, always thinking about "taking a gamble to recover losses." When losing money, they become anxious, increasing their positions larger and larger, raising leverage higher and higher, completely forgetting the rules of "stop-loss." Clearly, they should try small positions to test the waters, but they insist on going all in, resulting in greater and greater losses, leaving very little of the principal.

Secondly, there is the "futile hustle" that never stops. Switching back and forth between long and short positions, without a set position size, learning a bunch of methods but using them inconsistently. When the price rises, they want to chase the long position; when it falls, they want to chase the short position. It looks like they are busy, but in reality, they are just being repeatedly harvested in the fluctuations, earning a little money but losing it all back.

Third, there is a fixation on the belief that "I must win." Even after suffering several consecutive losses, and the trend has clearly turned unfavorable, one insists on competing with the market, thinking "it will definitely reverse." By holding on until the funds are completely depleted and the mindset collapses, when finally exiting the market, the trend may actually turn in favor - it's not bad luck, it's just that one couldn't hold on until that moment.

In the end, it’s not that the market is too harsh, but that one is too anxious. If you want to survive, you need to correct these three flaws first: don’t gamble, don’t act impulsively, and accept reality when it’s time to do so.

Summary:

- When experiencing losses, one rushes to recover, blindly increasing positions and leverage, ignoring stop-loss rules;
- The operations are chaotic and disorganized, with frequent switching between long and short positions, leading to repeated harvesting by the market;
- Holding onto a misguided belief in the market, refusing to let go despite the trend being unfavorable, ultimately leads to losing all funds and a breakdown in mentality.