From Get Liquidated to Guaranteed Profits: The 3 Transformations of Mindset for crypto world Traders, 90% of People Get Stuck at the Second Level!

The harshest truth in the crypto world: After learning a bunch of technical indicators, you still can't escape getting liquidated. In 2021, I saw a trader who drew 20 K-line charts every day, was well-versed in MACD and Fibonacci, yet when ETH was at $4800, he couldn't bear to cut losses and went from $500,000 to only $30,000. It was only later that I understood that the outcome of trading has never been about the indicators, but about the cultivation of mindset — these three realms hold the key from losing money to making profits.
First realm: The obsession in the indicator maze, the harder you work, the more you lose.
When I first entered the market, I frantically collected indicators: waiting for the MACD golden cross to float, waiting for the KDJ to be overbought and diverge, even drawing the Gann square densely. One time I traded SOL contracts, I found a golden cross on the 5-day line but the RSI was overbought, I was so conflicted that I didn't place the order until 3 AM, and as soon as I opened the position, it plummeted - those contradictory indicators became the shackles of my self-torture.
The mindset at this stage is the trap of "wanting too much and being too perfect":
Seeing others make money using Bollinger Bands, I immediately abandoned MACD and switched systems three times in a week.
Always blaming "indicator parameters are wrong" when the order loses money, changing the EMA from 12 to 20, then to 50, yet never admitting that it's themselves who hold the position without setting a stop loss;​
Late at night, while reviewing the K-line, I slapped my thigh and said, "If only I had used the theory of entanglement, I would have escaped the peak long ago," yet the next day, I still opened positions randomly in the sideways market.
Until one time when BTC broke below the 20-day line, I stubbornly focused on the "bottom divergence" signal, watching helplessly as my account plummeted from 20,000 U to 8,000—only to suddenly realize that those indicators I revered were merely lagging numerical games, and I had long become a puppet manipulated by the market in my obsession with "finding the perfect indicator."
Stage Two: The Struggle in the Myth of Win Rates, the More Persistent, the More Confused
Those who have endured the maze of indicators are often trapped in another dead end: the mad pursuit of a high win rate. I once reviewed 500 trades over 3 months, adjusting the stop-loss line from 5% to 3%, and then down to 1%, just to raise the win rate from 40% to 45%. What was the result? The average profit per trade dropped from 20% to 8%, leaving me with not enough earnings to cover the losses.
The mindset at this stage is the dilemma of "self-persuasion":​
After three consecutive profitable trades, I thought I had "understood the way", but then I heavily invested and ended up losing it all.
If I lose, I pull out the "Wyckoff Volume Theory" to comfort myself that "the main force is washing the盘", and even when I'm about to Get Liquidated, I still insist that "it's just bad luck";​
Seeing others make money with a low win rate but high profit-loss ratio, I scoffed: "A win rate of less than 50% can still be called trading?"
In the bear market of 2022, the most typical example of a "theory master" I know: he could accurately draw the ABC wave of BTC, yet he was too afraid to enter the market during each rebound because his "winning rate wasn't high enough," missing out on three opportunities to double his investment. Later, I understood that traders in this phase seem to be proficient in technology, but in reality, they are trapped by the obsession of needing to be "right," lacking even the courage to "accept losses."
The third realm: Calmness after letting go of obsessions, even with a 30% win rate, you can still make a profit.
Epiphanies often occur in the most desperate times. In 2023, I got liquidated 5 times in a row, deleted all indicators and only kept a 20-day moving average, and suddenly it made sense to me:​
Trading does not require prediction, only response — go long when it breaks above the 20-day line, go short when it breaks below, it's as simple as breathing;​
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What if the win rate is 30%? As long as each take profit is 3 times the stop loss, you can still earn 80 times after 100 trades;​
Those "simple indicators" that were once looked down upon, such as MACD, are actually sufficient — the key is not how complex the indicators are, but whether you can decisively take profits when the red bars shorten.
The mindset at this stage is the relaxation of "unity of knowledge and action":​
After placing an order, set the stop loss and then close the software. When receiving a take profit notification while running, just smile lightly.
Three consecutive stop losses? After calmly reviewing, I stayed in cash for a day, never in a hurry to "make back";
Seeing others chasing MEME coins to double, I feel no waves in my heart - knowing that it's not within my capability, I can't earn from it and I'm not anxious.
My trading system is now laughably simple: the 20-day moving average determines the trend, the MACD indicates strength, with a stop loss of 5% and a take profit of 15%. The win rate is only 35%, but the account curve looks like climbing stairs – because I finally understand that the essence of trading is not to conquer the market, but to master my own greed and fear.