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There is an eternal illusion in the market: the existence of an omnipotent opponent who possesses all information and can accurately predict every price moment. But this illusion is doomed to shatter.
In reality, the real threat comes from quantitative institutions and traders with insider information. They indeed have more data and computational power than retail investors. In ultra-short-term minute-level trading, they can capture micro fluctuations through high-frequency trading (HFT). This reality is right in front of us.
But here’s a key turning point— their advantage mainly lies in the short term. If you insist on competing with these machines on the minute chart, you’re only asking for trouble.
**So what to do?** Switch tracks. Don’t play on the minute chart; compete on the yearly chart. Quantitative giants excel at capturing micro-level fluctuations, but macro trends are constrained by the second law of entropy, making them even harder to predict precisely. The advantage of long-term holders is precisely here—over a long enough period, noise is automatically filtered out, and true trends gradually emerge.
**Another trick: reduce leverage.** This is crucial. The higher your leverage, the more demanding your price accuracy requirements become. For example, holding a full position with a stop-loss at an exact price. But if your LTV (Loan-to-Value) ratio stays around 20%, you have much more room to maneuver. Short-term price fluctuations won’t directly threaten your position, giving you ample time to wait for market correction.
In summary: extend the cycle, reduce leverage, and manage your positions well. These aren’t flashy techniques, but they are the standard for traders who can truly survive long-term.
The biggest advantage of retail investors is low time cost; we can just relax and wait, while institutions have to run marathons every day.
Controlling LTV at 20 is a crucial point—truly the first rule for survival. Where are those who are fully invested now?
The annual line is the main arena for retail investors; short-term trading is better left to robots. We play the long game.
This approach is much clearer now. It's not about skills; it's about those who survive long enough to do the same.
Engaging in minute-level trading with institutions is purely suicidal; it's better to lie flat and hold the yearly line.
Low leverage is truly a lifesaver; those who are fully leveraged will eventually end up eating dirt.
I was the one who fell into high leverage, going all-in, and ended up getting liquidated to the point of doubting life. Now I switch to yearly charts + low leverage, and my sleep quality has improved so much, really.
Long-term holders win by "staying alive," there's no problem with that.
Really, going all-in with leverage on minute charts is just giving away money and won't last long.
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Yearly chart traders indeed live longer; forget about the minute chart bunch of newbies.
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Leverage is really the biggest pitfall in trading; low leverage is the key to survival.
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No matter how smart the machine is, it can't predict a ten-year trend, and that's our way out.
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Instead of obsessing over precision every day, it's better to sleep well and earn long-term gains.
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No one listens to reducing leverage; everyone wants to turn things around with a single shot, so newbies will always be newbies.
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Macro trends are indeed easier to profit from than minute fluctuations; why do so many still pursue self-destructive short-term trading?
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20% LTV sounds conservative, but staying alive is more important than getting rich quickly.
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This article is just advising people not to compete with machines in ultra-short-term trading, but it's very clear-headed.
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Position management is never outdated, but it is always underestimated.
To put it simply, it's about good position management and avoiding leverage—that's the real skill to survive.
The true test will be on the yearly chart; short-term strategies are really just giving money to the machines.
I've learned to keep the LTV under 20%, so I don't have to constantly watch the market and get liquidated.