Having been in this circle for nearly eight years, what I want to say most is—my first two years trading derivatives were as miserable as it could get.

Back then, liquidations weren't occasional; they were daily occurrences. You’d top up your account, take a sip of water, and your account was gone. Only later did I realize a truth: the market itself isn’t the problem; the problem is myself—too impatient, too greedy, overestimating my judgment.

Now, I wouldn’t say I’m making huge profits, but I haven’t experienced a liquidation in these years, and that alone is worth celebrating. I want to share my pitfalls and lessons learned without reservation, hoping to help newcomers pay less tuition fees.

**About Averaging Down**

When caught in a position, most people's first reaction is to average down to turn things around. But in reality, the true purpose of averaging down is never to chase huge profits but to stop the loss. If at the moment you average down, your mind is all about getting rich quick, you’re basically paving the way for the next liquidation. Averaging down requires a calm mind and a clear plan, not a gambler’s overnight turnaround.

**About Market Trend Judgment**

The calmer the market looks, the more vigilant you should be. A stagnant candlestick doesn’t mean nothing’s happening; it often signals brewing big changes. Especially after a significant rise, watch out for triangle consolidations and frustrating sideways movements—don’t be fooled by the surface “strength.” That’s the market giving retail traders a time window to get caught. A rise to a certain level will inevitably retrace—that’s an iron law, no one can escape it.

The essence of trading is this: build positions when the crowd is sparse, and exit when the crowd is surging. When your social circle is full of profit screenshots, smart traders should be thinking about how to withdraw. Never sell at high levels unless you’re sure, never buy at lows unless you’re confident. During sideways consolidation, stay disciplined and avoid frequent operations.

**About Position Sizing**

Full position in the crypto world is like sentencing yourself to probation. The market is alive, and traders need to stay flexible. If you fire all your bullets at once, there’s no room for error—one wrong judgment and you’re out. This kind of approach will eventually lead to trouble.

**Finally, about Mindset**

Playing in the crypto space isn’t about some profound technical analysis; frankly, it’s a battle of human nature. Greed makes you chase endlessly; fear makes you cut positions immediately. In this cycle, your account’s money gradually evaporates. Those who truly survive are the ones who—don’t get carried away when they profit, don’t panic when they lose, and keep moving forward steadily.

I’ve stepped into more pits than the candlesticks you’ve seen. These words may sound harsh, but they can save your life. Want to pay less tuition to the market? Want to grow small funds into large ones? The key is whether you can control your mindset, stay steady, and keep smiling longer.