After Aster's spot trading launched on Binance Life, I had actually decided not to trade at noon on October 8th. However, I woke up from a slump and was caught off guard. I spent half the afternoon trading, but my win rate dropped significantly. I decisively decided to reduce most of my positions. Looking back, it seems to be a correct decision.
Most people focus more on technical skills when trading, but these skills are generally applied to individual trades and are disconnected from reality. The reality is that your position size and profit and loss will affect your subsequent trades, so today I want to discuss some key strategies.
I believe the mindset of most traders is:
First, invest in a specific asset with a small position. The profit and loss of this asset can easily influence the next trade. When they win, they tend to buy illogical and high-priced stocks, thinking the profit is irrelevant. When they lose, they focus on how to recover the loss as quickly as possible, which can lead to distorted trading strategies.
Playing memes is essentially like investing and Texas Hold'em.
Good decisions don't necessarily lead to good results. Bad decisions can lead to good profits.
The key points in real-world decision-making are:
Control your position size for each bet, as it will influence your decision-making.
Adjust your mindset for each decision, as they are independent.
Don't aim to win every time; aim for a high long-term win rate and maximized profits.
Before placing each bet, consider three things:
1. Is your position size aligned with your risk?
2. Is your mindset influenced by other factors?
3. What is your profit-loss ratio and what are your stop-loss and take-profit strategies?
With these three points clearly considered, gather as much information as possible, make the best decision quickly, and execute your strategy.
Finally, I wish everyone a happy bet, personal improvement, and great results.
