Woke up at 6 a.m. and analyzed the market. I felt it had stabilized and that Bitcoin was about to rebound, so I opened a long position.
The three sections outlined in the logical analysis look very similar, but their underlying logic is completely different. In the past, I only looked at price when trading, and my ETH futures positions were liquidated three times. Now, when trading, I focus solely on the logic of the trading system, with price serving only as an auxiliary reference.
A few days ago, I spoke with Roy (a student who joined BTB Research in 2023 and has always urged me to trade futures; his trading system has been steadily profitable for several years). When it comes to trading, he said that only futures trading is truly trading. Although I used to trade spot exclusively, I agree with his view—unless spot trading also includes stop-losses. But when trading spot, what we tend to recognize most is adding to positions, adding to positions, adding to positions! That is wrong.
I have experienced three bull and bear cycles. Looking back and studying the theory, I found that all the top Wall Street traders use stop-losses and never hold losing positions indefinitely. The basic principle is that protecting your principal is more important than anything else. Many traders perform exceptionally well at institutions because they sign contracts with the companies that include rules of conduct for trading; if they fail to follow them, they are out. When working independently, they fail to uphold their principles. When alone, it is easy to let oneself go, and the outcome is generally failure.
This is not telling everyone to trade futures. In fact, trading is really not something ordinary people can master just by studying it, because it goes so strongly against human nature. When someone becomes so calm that they seem to have lost their humanity, it is extremely lonely. You often have to switch back and forth between human nature and going against human nature—much like switching between wearing a mask and not wearing one at work.
I have already sent the chart below to the students. When they come to the office next, they will have to submit their assignments. Let’s see whether they can figure out why I bought at the circled area. Of course, my judgment may also be wrong, and Bitcoin could continue falling!
$BTC
The three sections outlined in the logical analysis look very similar, but their underlying logic is completely different. In the past, I only looked at price when trading, and my ETH futures positions were liquidated three times. Now, when trading, I focus solely on the logic of the trading system, with price serving only as an auxiliary reference.
A few days ago, I spoke with Roy (a student who joined BTB Research in 2023 and has always urged me to trade futures; his trading system has been steadily profitable for several years). When it comes to trading, he said that only futures trading is truly trading. Although I used to trade spot exclusively, I agree with his view—unless spot trading also includes stop-losses. But when trading spot, what we tend to recognize most is adding to positions, adding to positions, adding to positions! That is wrong.
I have experienced three bull and bear cycles. Looking back and studying the theory, I found that all the top Wall Street traders use stop-losses and never hold losing positions indefinitely. The basic principle is that protecting your principal is more important than anything else. Many traders perform exceptionally well at institutions because they sign contracts with the companies that include rules of conduct for trading; if they fail to follow them, they are out. When working independently, they fail to uphold their principles. When alone, it is easy to let oneself go, and the outcome is generally failure.
This is not telling everyone to trade futures. In fact, trading is really not something ordinary people can master just by studying it, because it goes so strongly against human nature. When someone becomes so calm that they seem to have lost their humanity, it is extremely lonely. You often have to switch back and forth between human nature and going against human nature—much like switching between wearing a mask and not wearing one at work.
I have already sent the chart below to the students. When they come to the office next, they will have to submit their assignments. Let’s see whether they can figure out why I bought at the circled area. Of course, my judgment may also be wrong, and Bitcoin could continue falling!
$BTC
