I used to be the kind of person who couldn't resist bottom-fishing. A few years ago, whenever I saw prices dropping, I couldn't help but want to jump in. As a result, due to frequent follow-the-leader trades, I lost my first pot of gold entirely. After experiencing multiple margin calls, I realized a key point: crypto trading isn't about who makes money the fastest, but who can survive the longest; it's not about who has the biggest guts, but who can find truly high-probability opportunities.

In the ADA 346x liquidation event, retail investors losing money weren't unlucky—they fell into the trap of "gambler-style follow-the-leader." They weren't trading for profit; they were gambling.

Let me clarify what "high-probability trading" means. It doesn't mean a 100% guaranteed profit, but a risk-to-reward ratio of at least 1:3. Simply put, risking 1 dollar should have the potential to earn 3 dollars. Conversely, those bottom-fishers aiming for a small rebound profit are risking losing their entire principal, which is completely backwards.

The main reason retail investors keep falling into this trap is that they are controlled by greed and fear. Seeing others make huge profits from bottom-fishing fuels greed; seeing prices keep falling pushes fear to cut losses. Both emotions dominate, and rationality is long gone.

I have summarized the "three essentials of high-probability trading." Over the years, this method has helped me avoid countless pitfalls. The first is a clear entry signal—trading shouldn't be based on feelings; it must be based on specific trading signals.