Original title: How to survive losses without losing your mind?
Original author: Tokyo ( @DefiTokyo )
Compiled by: Asher ( @Asher_0210 )
A growth and evolution in ups and downs
In the recent market, Bitcoin plunged more than 20%, Ethereum also fell nearly 30%, and many altcoins even plummeted by about 70%. Whether you are a long-time veteran or a novice, such a large fluctuation will catch you off guard. It is safe to say that this market reshuffle is not a unique experience for some people, but a common pain experienced by the entire crypto world.
Everyone is bleeding, not just you
When prices plummet, many people inevitably feel anxious and powerless. I myself have suffered a lot of losses. Although I have experienced bull and bear cycles in the past, every big drop still makes people feel nervous. The market decline brings not only a reduction in numbers, but also a heavy blow to faith and emotions. We are used to the high-speed operation of the market. The enthusiasm when it rises and the panic when it falls are almost commonplace, but this time the violent fluctuations have made everyone feel the heaviness and helplessness of the losses. No matter how you adjust your positions, in this wave, the pain you feel is common.
First, please stop and take care of yourself
Market fluctuations catch people off guard. Many people are eager to act out of panic and try to quickly recover their losses. At this time, the most important thing is not how to quickly recover the losses, but to learn to stop and adjust your emotions first. Please turn off those constantly refreshing K-line charts, temporarily leave social media, and dont let the outside noise and negative news further disturb your mood. Give yourself a period of rest, enjoy a hot meal, enough sleep or a leisurely walk, so that your body and brain can get the necessary rest and reset. Only when you have regained your calmness can you have clear judgment and face the market again.
Power off and restart, starting from the body and mind
Sometimes, the simplest adjustments can bring the biggest changes. Pausing the flow of information that makes you anxious and focusing on basic daily routines is an important first step to get out of the emotional trough. Try to spend a whole day away from the computer and mobile phone screens and give yourself a chance to go offline. When you put down your phone, close your eyes, and quietly experience the rhythm of your breathing, the peace of mind and body will gradually help you regain your inner strength. As we often say, only by repairing your body and mentality first, and then repairing the numbers in your account, can you get out of the trough.
Review calmly and face losses rationally
When your emotions gradually calm down, please take out a pen and paper to seriously think about and review this trading process. This step is not to let you indulge in self-blame and regret, but to find out the root cause of the loss. In this process, you can ask yourself: Is the position too heavy? Did you ignore the stop loss setting? Did you blindly follow the trend? Or did you believe in some unverified information? Write down these thoughts in detail and record every lesson and reflection. This is not only a way of self-growth, but also can help you avoid repeating the same mistakes in the future market. Although the loss is painful, only by learning from it can you gain an advantage in the next market turnaround.
Rebuilding from the basics, step by step
The most important thing now is not to rush to find new profit opportunities, but to let yourself step into a stable and orderly life. Re-adjust your work and rest time, ensure adequate sleep and healthy diet, and insist on moderate exercise. These seemingly ordinary life habits will lay a solid foundation for you to rebuild your heart and trading system. When you can restore your daily routine, your inner impetuousness and panic will gradually subside. Rebuilding yourself is not as simple as entering the market again, but starting from the most basic details of life to make yourself stronger and calmer.
Regroup and focus on what you can control
Although you cannot control the market trend, you can completely control your own learning and thinking. Try to review every past transaction in depth and carefully study the reasons behind the success or failure. At the same time, pay more attention to some on-chain data tools, such as Nansen, DeBank, etc., to obtain first-hand information and data support. In addition, you can also pay attention to the movements of those big investors or whale addresses to understand their investment strategies and operating logic. Through continuous learning and accumulation, you will gradually find that the power of rationality and data can determine your investment results far more than temporary emotions. The real winner is not only the one who can seize the opportunity in the volatility, but also the one who constantly improves his cognitive level in peace.
Remember: Don’t rush to win back
Under the stimulation of losses, many people will be eager to recover their losses and hope to recover the lost funds as soon as possible. However, this is often a road to self-destruction. The rush to recover your losses can easily lead you into a vicious cycle of high leverage and frequent trading, which may eventually wipe out your account. At this time, what you need most is calmness and patience, rather than blindly following the trend. Waiting for the market to return to rationality and waiting for the signal to be truly clear before taking decisive action can effectively avoid the risks brought by impulsive trading. Truly smart investors know how to stabilize their emotions during the volatile period and wait for the crucial best time to take action.
Growing up in pain, cognition makes you stronger
After experiencing this market baptism, you will find that pain will eventually turn into valuable wealth. The market trough allows you to see your own flaws and shortcomings, and also makes you more aware of the importance of steady progress. Maybe you are walking slowly at the moment, but every decision in the future will become calmer and more rational. You will learn how to seize long-term opportunities and no longer pursue profitability in every transaction. It is precisely after growing up in such a predicament that you will be more resilient and insightful, and gradually find your own value and beliefs.
If you still persist, you are ahead.
When you finish reading these words, it means that you still choose to go with the market instead of leaving completely because of a temporary setback. Compared with the 90% who choose to give up, you already have more courage and persistence. Losses are not the whole of your identity, but how you face and learn from them. It is these experiences that will eventually make you a mature, rational investor who is more capable of dealing with market fluctuations.
Slow down, adjust yourself, the future will have infinite possibilities
The market will have ups and downs, and you will grow in every fluctuation. Please remember that a stable mentality and constantly improving cognition are the keys to your long-term success. Look further ahead. When you have completed self-adjustment and cognitive upgrades, the next opportunity will surely come quietly. By then, you will stand at the highest point of the market with a more calm and determined attitude and welcome a brighter future.
