From Drop to Zero to Stable Profit: A Six-Year Review Experience and Lessons of a Cryptocurrency Trader

A trader shared his six-year journey: from emotional trading, high-leverage gambling leading to zeroing, to finally learning risk control, patiently waiting for opportunities, and achieving stable profits and profound lessons and growth. This article is derived from an article written by Dyme and is compiled, compiled and written by TechFlow. (Synopsis: Your "scarcity mentality" is the biggest enemy of crypto trading) (Background supplement: Bitcoin cycle theory is dead? CEO of CryptoQuant: The BTC sold by the old whale goes to long-term institutional investors) The market is interesting. It often rewards bad behavior, but eventually reverts to the mean, and those who never think about it end up humble. Recently, several people have asked me how I started from scratch and achieved stable and large profits step by step, surpassing previous trading results and making my portfolio reach new highs. In short: deep surrender, stupid mistakes, and luck. My "zero" is different from others, but it also has similarities. It is never literally nothing, but a spiritual rout, a complete renunciation of oneself. I failed in all attempts and had to slowly crawl out of the dark abyss. Then, I made a comeback. You have no idea if I'm playing a role-playing game. I don't, but you don't have to believe me either. I've never written about these experiences in a centralized way, but I've shared fragments scattered over the years. My friends and a lot of people who have been following me for a long time know what happened. I went from being a "stupid head signal" to "Dyme does seem to have a clear understanding of the market these days." You can't get any useful information from this article unless you can understand the pain I'm going through. So, buckle up, and we're on our journey. It's going to be a long story. If you don't want to hear my boring story, you can skip straight to "What you want to see (the essence)". It's time to sort out these experiences. In 2019, after about four and a half years at a job I didn't really like, I finally left. I have been a strong supporter of Bitcoin for many years. But seeing that some people made a fortune through leveraged trading, I also wanted to try, so I planned to spend six months without working to learn trading. I didn't know anything about chart analysis and trading, but I started experimenting with options and stock trading, and I learned to draw lines on charts. Anyone who remembers my early charts knows that those charts were a mess and my judgment was often wrong. What's more, I have no concept of risk control at all. However, I realized that reading market signals seemed to be becoming more and more important. I've been fiddling with those amateur charts, and after 2017, my netizens have become more and more advanced in this regard. Many of us became very rich at one point in 2017, but as Bitcoin plummeted by 80%, wealth slipped through our fingers. I guess I'm not the only one thinking, "It's time to learn chart analysis so you don't lose so much again." In 2019, I probably had two or three thousand followers, mostly enthusiasts in the cryptocurrency space. I didn't enter this industry to become famous, I just wanted to spend six months focusing on trading and learning some basics. Techniques such as chart patterns, moving averages, etc. I don't know what works and what doesn't. But it's always something to try. I have savings for six months and receive unemployment benefits. My life is secure for the foreseeable future. So in August 2019, considering my years of work, I asked my employer to fire me (they are known to never object to claiming unemployment benefits). They agreed. Unfortunately, shortly after that, Bitcoin reached its highs in 2019, and from then until mid-2020, the market was volatile and flat. It was the worst possible time, and I quit my job and put my heart and soul into trading. I finally had time to think, to learn, to do things that I didn't have time to do when I worked forty or fifty hours a week, and of course, to bear all the risks and drawbacks of this freedom. I got moving. Do the S&P 500 call trade, speculate on stocks, study charts every day, and find a way to make even $100 to $500 a day. In the year leading up to 2020, the cryptocurrency market was dismal, and I only made occasional sporadic profits, but fortunately persevered. If I hadn't been a complete newbie, the trading environment during that time would have been pretty good in 2020 and everything was going well because I logged in every day, shared my (bad) opinions, and my followers grew. I am occasionally profitable and my account balance is generally on an upward trend. People appreciate that I can share some valuable information online, because not everyone has time to think about it (they still have to work, after all). Although I lost a lot of money, I always recovered my losses quickly. For a newbie, this is already quite acceptable. Leveraged trading became my way of life. I stared at the chart for 15 minutes, trading with 20x leverage, desperately trying to get some benefit from the market, until my position hit a maximum on February 20, and I didn't believe I was trading quite well. Then, the "nuclear weapon" of the new crown epidemic struck. Almost the same week, my unemployment benefits were due. So, my original plan to study for a while and then find a serious job again instantly came to naught. It was as if it was the end of the world – a new virus had emerged. I managed to go short, and in the market crash caused by the epidemic, I used 0.5 bitcoins, which became 1 bitcoin with 50x leverage. That week, only this thing went well; My stock has taken a hit, and I'm pretty sure my income is going to die. It was as if God had arranged for me to devote myself to trading. Fortunately, Jerome ( Fed President ) and his "money printer" saved the world. Everyone knows what happened next. The market soared over the course of a year. It was really the peak of "only going up, not down". Although the market can make people profitable, it is also ridiculous. What makes FTX more exciting than a rising market is leveraged trading. I have some experience, but it's limited and I don't know much about the macro environment. All I know is that Jerome is printing money and the market will definitely go up because of it. Then our "savior" comes, and he will take us into a promised land and will never do anything terrible. Little did we know that FTX was about to take us on a "journey of a lifetime." I deposited $4,000 to $5,000 into FTX and bought the FTT (FTX Platform ) for $2 to $4 in multiple installments. FTT is up 3000%. I suddenly had $40,000 to $50,000 in my leveraged account. I've never had so much money before. ( this is the first red flag ) I deposited more funds and wanted to trade more leveraged because my FTT was staked and could not be used as collateral. At that time, I was emotionally fully engaged in the FTX ecosystem. To this day, I still can't believe that this chart is real The day I reached 10,000 followers coincided with the beginning of the "only up, not down" market. The world really always brings surprises. I went from someone who would only reply to other people's tweets to a little famous person...