When one day the numbers in your account rise, you will eventually realize: investing in this "game" has already become a part of your life.
Written by: Ian
Translated by: Luffy, Foresight News
Recently, I have heard many regretful stories from investors: significant drawdowns in profits, or even total losses. But don’t lose hope; since you have made profits before, you can do it again. I have had similar experiences, so I want to share some thoughts on how to bounce back.
Treat Trading as a Game
Do you remember your first time stepping into the fantastical world of "Elden Ring," getting brutally defeated by the "Kite" Tree Sentinel more than a dozen times before figuring it out? Do you recall the feeling of finally reaching the Platinum rank after being stuck in Bronze for several months?
After experiencing countless "rug pulls," you made your first 5x profit on a Memecoin. After months of hard work, you received your first substantial airdrop. These moments are filled with dopamine and a sense of achievement!
Take a Break from the Noise, Return to Life
At this moment, if you are feeling down due to investment losses, consider hitting the pause button. Return to real life, spend more time with family and friends. Maintain a regular routine, eat healthily, and engage in vigorous exercise to rejuvenate your body and mind. Treat these seemingly unrelated daily activities as side quests for self-improvement. Just like in a game, completing side quests well can significantly enhance the main character's attributes, allowing you to face main challenges more confidently.
Understand that the market is never short of opportunities; as long as you stay sharp and ready, you can capture them again. But the prerequisite is that you have a healthy body and a clear mind.
Return to the "Battlefield," Strategy First
When you have adjusted your state and are ready to return to the investment "battlefield," don’t rush into the fray. Before you start, write down all the mistakes you made in the last round and create a plan, establishing a risk management framework that you must follow.
A qualified framework should include rules for capital allocation, risk exposure, and most importantly, profit-taking rules. I have seen too many investors, after making some profits, driven by greed, recklessly reinvest their profits into high-risk new projects, often ending up with nothing. Remember, only by securing profits and converting them into fiat currency to pay off debts and show gratitude to family can you truly claim that wealth as yours.
Walk with a Team
If you don’t have a team yet, find one or create a core group chat with a smaller scale, consisting of high-quality talents you can trust. Playing through a game solo is cool, but doing it with a skilled and diverse team is even better and more fun.
Resource Management
Now that you are revitalized and have a plan, how do you start? In every game, you need resources to snowball towards victory.
In "Age of Empires," you have wood, food, stone, and gold; in "League of Legends," you have gold, mana, etc.; in chess, you have pieces and time; in investment trading, your capital and time are your resources.
In my view, when you restart or find yourself in an investment predicament, there are two ways to balance these resources:
1. Extreme Maximization Mode
You work in the Web3 space, ideally at a fund or research institution. This immerses you in this "game" 24/7. The intensity is high, and your engagement is also high; you are always online, spending your free time browsing Twitter and Telegram. Every aspect of your life revolves around cryptocurrency, and insider information may be sent to you via private messages, with opportunities arising frequently.
You level up quickly because you are always at the forefront, but it can be exhausting. It’s easy to burn out. If you’re not careful to allocate time for your side quests (like returning to real life and maintaining health), you can easily fall into a narrow perspective. This is the typical trade-off brought by extreme maximization.
2. Balanced Mode
If you can only invest a limited amount of time in this "game," then choose this mode. You might have a job in the Web2 space (which is your area of expertise), or a non-research/investment job in the crypto field. You won’t be browsing Twitter all day or hanging out in Telegram or Discord channels.
That’s okay! A lower frequency of operations can still generate resources over time. You can still win like the tortoise in the fable of the Tortoise and the Hare.
You won’t be anxious about every market trend change. You have time to look at issues from a macro perspective, make more confident decisions, and avoid emotional outbursts. You might choose to simply dollar-cost average into mainstream cryptocurrencies and perform better than average retail traders. If you wish, over time, you will be able to fund your transition to extreme maximization mode to achieve snowball growth later on.
Find Your Motivation
On the long road of investing, it’s worth asking yourself from time to time: why did you enter this field? Is it for financial freedom, to have more choices in life? Or is it to prove yourself? Whatever the answer, when one day the numbers in your account rise, you will eventually realize: investing in this "game" has already become a part of your life, a career of continuous passion and relentless pursuit.
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