Trade the fifth weapon — the Flying Knife

Earlier, I discussed four weapons to help you control your hands, see the path clearly, and stand firm.

But starting with this weapon, I will talk about: how to strike.

Why call it “flying knife” instead of “swinging knife”? Because swinging a knife is close-range combat — high-frequency operations driven by emotion, the daily routine of retail traders.

But the flying knife is Li Xunhuan’s flying knife — it never misses.

The enemy never knows where he hides the knife or when it will be thrown, but once it is thrown, the enemy is doomed.

Trading is the same!

The number of times you strike doesn’t matter; what matters is the result of each strike.

An excellent trader does not constantly enter and exit the market, drawing blood with every move. Instead, like Li Xunhuan, he only strikes at critical junctures.

I. The Flying Knife Is Not Short-Term Gambling

In trading, most people are “swinging knives.”
When Bitcoin was at $120K, with a greed index above 80, they chased longs, thinking “it can still go up.”
When it dropped to $60K, with a fear index in the teens, they shorted on the trend, making a small profit, then called themselves “genius traders.”

If, on the day Bitcoin breaks $150K, can they show a real screenshot of going long at $60K and holding all the way to $150K?
Or will they still be happy about the short they took at $60K? No. That trade was just short-term gambling. Maybe they made a little money from leading others, but it won’t be a battle that establishes their reputation.

Those who truly master the flying knife don’t make small money from short-term emotions; they bet on deterministic outcomes.

The flying knife is — you see the direction clearly, then you strike decisively at an extremely precise position.

That strike must combine your “maximum position, highest odds, and minimum noise.”

Before the flying knife is thrown, you have waited a long time. You won’t change your plan because of repeated oscillations, nor will you panic-stop-loss or reduce your position because of a single pullback.

II. The Essential Difference Between Shorting and Going Long

The essential difference between shorting and going long is not about “whether you think it will go up or down,” but about your capital structure and position selection.

Short sellers — they must have a sufficient proportion of margin in hand.
This margin is not used to ensure the contract doesn’t get liquidated, but as a “spot order lying in wait near the liquidation line.” If your contract gets liquidated, the spot order buys in at the preset position, completing a shift in asset structure.

For example: You think Bitcoin will drop to $50K, and $50K is your psychologically expected buying position. Then you can set your short contract’s liquidation line at $48K — if the price hits $48K, the contract liquidates, but the spot has successfully bought in at $50K. This scenario shows that a true short seller is not simply bearish, but uses the drop to complete a position switch.

If a short seller, after a contract liquidation, does not have a high proportion of reserve funds to buy spot, that person is not a trader — they are a gambler. You short in order to switch asset allocation during the decline. Your goal is to hold more spot at a lower cost, not to prove you were right about the direction.

Long traders — often those with limited capital.
Because they don’t have much principal, they choose to go long. Long traders tend to be more speculative than short sellers. They have no hedging reserves, no post-liquidation switching mechanism; their entire hope rests on price increases. Since it’s a gamble, the risk is the same. Therefore, when to throw the flying knife — i.e., the entry point — is very important. Is it more likely that Bitcoin drops to $30K or rises to $100K? This is an elementary math problem; I won’t elaborate.

III. Stop-Loss Is a Pseudo-Concept

You can swing the knife countless times, like the fast-sword A Fei, or you can be like Li Xunhuan — once the flying knife is out, it never misses. In terms of results, they are essentially the same — lacking skill is not about your character being bad; it’s that you don’t know how to strike decisively at critical moments.

Many traders often say: “I set a stop-loss.”
But they don’t realize: stop-loss is a pseudo-concept. If you truly have sufficient capital reserves and strategic positioning, then a stop-loss doesn’t need to be separately “set.” When you set it, you already doubt your own strike.
When you throw your flying knife, your entire trading logic should already cover the “what if I’m wrong” path, rather than relying on a cold stop-loss line to admit failure for you.

What you really need is not a stop-loss, but capital structure.
What you really need is not precise entry, but a position switching plan.
What you really need is not “to be right about the direction,” but “the spirit of the flying knife that moves forward fearlessly even if wrong.”

IV. Why Some People Are Still Excellent Traders After Being Liquidated?

Big Brother Machi (Machi Big Brother) got liquidated, Liang Xi also got liquidated. Yet they are still traders remembered by the market. Not because of the huge liquidation amount, nor because they were once accurate, but because they threw the flying knife at critical junctures.
They placed bets in an instant, and they placed heavy bets. When that knife hit, the gains covered all previous losses and all the market noise.

Liquidation is not the problem; the problem is having no ability to throw the flying knife after liquidation.
Losing money is not the problem; the problem is being afraid to throw the flying knife again after losing.
Being wrong is not the problem; the problem is having no position-switching mechanism after being wrong.

Ordinary traders treat every trade as a “test,” entering and exiting frequently, repeatedly stop-lossing, grinding down their account bit by bit. But true traders rarely act; they only throw the flying knife at extremely few critical junctures. They might make only three to five decisions a year — but those few decisions determine the results of the entire year.

V. The Mindset of the Flying Knife

When you throw the flying knife, you are not “gambling on up or down”; you are betting on a certainty. Believe in yourself!
After you throw the flying knife, you don’t watch, don’t chase, don’t patch up — because patching up itself means you weren’t ready to throw.
The landing point of the flying knife is not determined by price, but by the initial psychological expectation. Only after your predictions are repeatedly verified will you build a self that is powerfully confident.

So, when Bitcoin was at $58K+, have you already thrown the flying knife?

Fighting without training — old age brings empty hands.

If you thoroughly understand and internalize the logic of my trading weapons, it will surely enable you to ride the wind and waves, continuing the legend during this transition from bear to bull!

At the same time, I hope family members will follow me, leave comments, and discuss. This account is my new one, but I am an eight-year spot trader, familiar with all kinds of coins. I have traded over 500 altcoins.