Once careless, errors can become more dangerous, and the risks you bear will far exceed the risks you planned at the beginning of trading. What would you say to yourself?
What would you say to yourself then?
I would ask myself, "If you sold your entire portfolio today, would you repurchase the same assets in the same proportion?" Most people realize they wouldn't, but they still continue to hold bad positions out of attachment. Moreover, opportunity cost is important - every dollar in an asset is a dollar not invested elsewhere.
Another thing is to avoid the mindset of "making back all the money in one trade". This is a common trap. Do not make revenge trades, but focus on accumulating small victories.
How do you know when to reduce your position?
This is the most difficult part. Many people hold losing positions due to emotional attachment or just hoping things will improve. But the key is to be honest with yourself. If you have re-evaluated your perspective and the situation has not improved, it's time to move on (to "cut the meat"). This is a challenge faced by many retail investors.
How can you ensure your biases do not affect your judgment?
Having a team definitely helps. In my company, we make everything transparent, so people can point out when I do something problematic. Accountability keeps me restrained. We conduct rigorous and often brutal post-mortem analyses for every major decision, and we encourage everyone, including new employees, to actively point out issues with the company's more "senior" members in a brutally transparent manner.
Self is not allowed in the market, and building a team dedicated to thorough honesty without emotion is crucial. If you are alone, find someone to share your position and get feedback. It helps alleviate emotional decision-making.
So, accountability plays an important role in maintaining focus?
Absolutely. Having a team or a trusted person to discuss trades can ensure you don't get stuck when things go wrong. If a mistake is made, it's important to accept it, move forward, and not dig yourself deeper. Accountability can prevent you from making more mistakes.
What do you recommend for participants looking to find a trusted group or friend involvement?
A lot of alpha has already moved from Crypto Twitter/X to Telegram and Discord communities. If you're just starting, Twitter/X is an excellent platform to build a network and share ideas, but today I prefer Telegram as the primary communication medium.
What are the common characteristics of successful traders?
Successful traders are good at handling stress and can make calm decisions when things become unstable. This is not something easily learned - it's an innate skill. If you have it, hone it. If not, recognize that and do not force yourself into high-pressure environments. Recognizing your strengths and weaknesses and choosing your position accordingly is crucial.
What are the most common mistakes traders make?
I often see people fantasizing before things have happened. This occurs when people get caught up in the idea of "success" because their portfolio has grown and they start making significant lifestyle changes. They think the money on paper is real money, and they go out and buy unnecessary things like expensive cars or luxury watches.
But the reality is, it's just a score on a scorecard unless the money is deposited in a bank account and taxes are paid. I always look at cryptocurrency this way - it's a game, not real money until it becomes cash. When players don't understand this, they often mismanage their wealth and lifestyle.
What are some common misconceptions about cryptocurrency?
One of the biggest misconceptions is that you should allocate capital based on fundamentals. People think that if a project's fundamentals are strong, the price will rise accordingly. But in reality, the market doesn't care about fundamentals in 90% of cases. Making money is actually about predicting which narratives will become popular first.
Fundamentals are important when there are catalysts, but most of the time, the key is to catch the next trend and make a judgment when you see it. Anyway, this is my experience. It's somewhat like when you know something is about to happen, it suddenly happens, and you do your best to respond because market changes can be faster and further than you expect.
What advice would you give to those entering the crypto space today to succeed?
To be honest, if I were entering the crypto space today, I would question whether it's worth it. But if you still want to enter the crypto space, I would say first focus on on-chain assets. They have the best upside potential and can provide the fastest compound returns for smaller portfolios.
But on-chain opportunities won't always exist - on-chain assets have a certain seasonality, and when on-chain market opportunities are exhausted, you'll still need to be able to trade on centralized exchanges. The ability in these two trading layers is key, but you should focus on mastering one layer and becoming proficient in the other, without trying to manage both simultaneously.
What are your personal goals for the next 10 years? Do you think cryptocurrency is just a means?
First, I really love this "game". Competing with the world's best traders and investors is an important reason why I'm in this industry. In the next 10 years, my goal is to build the best proprietary fund in the crypto space. Looking long-term, my goal has shifted towards the stars. I've always dreamed of contributing to making humans an interstellar species. A big part of that is supporting space exploration to the best of my ability. One of the items on my bucket list is to go to space before I die.
So, you believe cryptocurrency is not just about wealth accumulation, but part of a broader vision?
Exactly. There have been many statements about the mission of crypto, which don't need to be repeated here. Beyond that, for me, as a platform for achieving extraordinary wealth, cryptocurrency also gives us the opportunity to compete globally. I want to use this success to support larger causes like biomedical research, space exploration, and environmental protection.
In my company, through personal investments by myself and my co-founders, we actually invest in robotics, biocomputing, home cancer screening, and other front-end technologies unrelated to crypto. Sometimes these founders are even crypto pioneers or interested in crypto. It's all interconnected.
What advice do you have for those who want to succeed in the crypto space now?
My motto is simple: "Live, Laugh, Long-term." "Live" means taking good care of yourself and enjoying life while you're young. "Laugh" means appreciating where you are and making the most of every moment. "Long-term" means having patience, understanding when to allocate resources, and knowing where you want to contribute. If you have this mindset, you are not only contributing to society but contributing to society in the long run. This is your path to success, not just in the crypto field, but in life as well.
