Why can some people make big money through trading? This question seems simple, but the underlying logic is actually very clear.

The fundamental logic of trading is buying and selling. How does profit come about? It comes from the difference between the chip cost and psychological expectations of the participants. The lower the chip cost and the more holdings, the smaller the psychological fluctuations. Under this mindset, it is often possible to achieve tenfold or even dozens of times the returns through a few market cycles.

Traders who truly make big money usually have these characteristics:

First is sufficient cash reserves. This is not for full-position rushing, but to have the patience to withstand market cycles and wait for truly good opportunities. The opportunity cost is often overlooked, but it determines whether you can survive until the moment you make money.

Second is to either not act or to take a heavy position. Frequent small trades drain mental energy and are easily influenced by market sentiment. It’s better to concentrate funds on high-confidence opportunities.

Next is to only trade highly liquid coins. Obscure coins may have opportunities for sudden wealth, but they also entail higher risks and the risk of being trapped. High liquidity means easy entry and exit, which is crucial for long-term gains.

Leverage should be kept at a low multiple. This sounds conservative, but in reality, it’s the secret to surviving longer. Being able to withstand more drawdowns allows you to wait for a true reversal.

Finally, don’t spend all your time staring at the charts. True experts spend more time enjoying life and thinking about strategies, rather than staring at candlesticks. With a good mindset, decision-making becomes clearer.